(Alliance News) - JPMorgan Emerging Markets Investment Trust PLC on Friday said it underperformed against its benchmark as it faced higher interest rates, while it touted optimism for 2024.
The investment trust focused on long-term growth said net asset value per share rose to 0.5% to 118.2 pence per share as at December 31 from 117.6p a year prior.
NAV total return was 3.2% over the six months to December 31, lower than its benchmark, the MSCI Emerging Markets index with net dividends reinvested, which returned 4.4%. The company's NAV total return to shareholders was 2.8%.
The company declared an interim dividend of 0.60 pence per share, up 3.4% from 0.58p a year prior.
While the past three years were challenging, JPMorgan Emerging Markets said that there are reasons to be more optimistic in 2024. "Emerging market economies are in general doing well, with stronger growth, less inflation and lower debt than their western counterparts; meanwhile falling global inflation should provide emerging market central banks with scope to cut interest rates in due course; lower rates should, in turn, bring relief to household and corporate balance sheets; the US dollar is down considerably, which eases the interest burden on emerging market debt; and China's economy is growing, albeit more slowly than previously expected, but still faster than most developed economies."
JPMorgan Emerging Markets shares fell 0.7% to 103.90 pence each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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JPMorgan Emerging Markets Investment Trust (JMG)