JPMorgan Emerging Markets says the first half of its accounting year (the six months ended 31 December 2015) proved to be a difficult period for emerging markets. Over the six months to 31st December 2015 the Company’s benchmark index, the MSCI Emerging Markets Index (in sterling terms), fell 11.8%. JPMorgan Emerging outperformed the benchmark however. For the six months, the Company produced a total return on net assets of -6.8%. Over the same period, the return to shareholders was -6.2%. The discount on the Company’s shares widened from 10.7% to 11.0%.
The Board has decided it is time they restated the fund’s investment policy to a total return objective. They have decided to split the allocation of expenses – 70% against capital and 30% against income (was 100% against income). This increases the potential for dividend growth and makes a total return objective more appropriate. Accordingly, the restated investment policy is “to invest in emerging markets with the aim of maximising total returns against the MSCI Emerging Markets Index (in sterling terms)“. They emphasise that this will not mean any change in the way the portfolio is managed.
There is nothing in the manager’s reports about the stocks in the portfolio.
JMG : JPMorgan Emerging restates its investment policy