JMO : Stock selection boosts JPMorgan Overseas
JPMorgan Overseas results for the year that ended on 30 June 2014 show the fund outperforming its benchmark by some margin – the net asset value total return for the year was 13.7%, the return on the MSCI All Country World Index was 9.1% and the return to shareholders was 13.2%. The Board is maintaining the dividend for the year at 15p.
The statement says the fund’s outperformance was driven by the manager’s stock selection. They highlight good performance (up more than 70%) by Finnish paper company, UPM, and Outokumpu, the steel company benefiting from a turnaround in the European stainless steel market and a reduction of its debt. Takeovers amongst their healthcare holdings also helped (Shire received an offer from Abbvie; Onyx (a US biotech) was bid for by Amgen; and botox producer, Allergen, got a hostile offer from Valeant.
In Japan the focus on exporters and financials was a negative over the first half of 2014. Being underweight emerging markets was good news however. Within that area of the portfolio, Sands China, the Hong Kong-listed operator of casinos and resorts in Macau, did well and was sold. In India, the election of Narendra Modi was well received and this benefited their holding in ICICI bank.