LONDON (Alliance News) - JPMorgan Income & Capital Trust PLC Wednesday said it outperformed its benchmark in its most recently ended financial year, although it saw its net assets fall, which it said reflected a general market decline.
The trust saw a negative total return on its assets for the year to end-February of 5.5%, ahead of the negative total return of 6.9% recorded by its benchmark.
Its benchmark comprises 90% FTSE 350 Index excluding investment trusts, and 10% Barclays Global Aggregate Corporate Bond Index in sterling.
JPMorgan Income & Capital attributed its outperformance to stock selection, with domestically orientated and mid-cap markets falling less than constituents of the FTSE 100.
Dividends paid or to be paid for the year amounted to 7.40 pence, up 12.5% from the total of 6.575 pence paid the previous year.
"The short term outlook is dominated by the forthcoming referendum to determine whether or not the United Kingdom should remain within the European Union. The impact on the UK economy as a consequence of a vote in the forthcoming referendum to leave the European Union is uncertain. The board, together with the company's manager, JPMorgan Asset Management, is keeping a close eye on developments," Chairman Laurence Magnus said in a statement.
"Despite the market volatility experienced since the summer of 2015, dividend yields from the UK stock market have remained healthy. The board currently has no plans to change the company's investment strategy," Magnus added.
Shares in JPMorgan Income & Capital were down 1.6% at 78.00 pence Wednesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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