Over the six months to 31st December 2016, JPMorgan Emerging Market’s benchmark index, the MSCI Emerging Markets Index (in sterling terms), rose 13.0%. For the same period, the company produced a total return on net assets of +7.4%. The return to shareholders over the first half of the financial year was higher, at +10.2%. This reflects a narrowing of the discount at which the Company’s shares trade, from 13.2% as at 30th June 2016 to 11.7%.
The chairman’s statement attributes the underperformance to the manager’s focus on quality growth stocks. The portfolio is underweight in the more cyclical stocks in energy and resources and these did well in the period.
JMG : JPMorgan Emerging lags benchmark as cyclicals outperform