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JPMorgan Russian Securities – Expert access to attractively valued market

JPMorgan Russian Securities JRS - Expert access to attractively valued market

JPMorgan Russian Securities – Expert access to attractively valued market

Russia’s economy benefitted for much of 2018 from a recovery in the oil price and rising prices for a range of other commodities. A weaker rouble has offset the recent oil price fall. Oleg Biryulyov, longstanding manager of JPMorgan Russian Securities (JRS), has many years of experience managing Russian equities. He is comforted by prospect of rising dividends over the coming year.

When QuotedData last wrote on JRS, attention was drawn to Russia’s deteriorating relationship with the West and how this had impacted on foreign investors’ attitudes towards Russian stocks. Since this time, while sentiment has worsened; Russia’s domestically focused economy appears resilient and its companies are generally providing good earnings growth. Valuations and yields are therefore all the more attractive.

Growth from a diversified Russian portfolio

The company’s objective is to maximise total return through investment predominantly in Russia, with distribution of income dependent upon levels received. Up to 10% of the portfolio can be invested in companies located in former republics of the Soviet Union. The portfolio is fairly concentrated (typically between 25 and 50 positions). JRS is permitted to use gearing (borrowings) but has not done so for some years.

 

 

wdt_ID Year ended Share price total return (%) NAV total return (%) Blended benchmark TR (%) RTS total return (%) MSCI Russia 10/40 TR (%)
1 31/12/14 (46.6) (45.9) (39.4) (38.4) (39.4)
2 31/12/15 12.4 16.9 13.4 6.2 13.4
3 31/12/16 87.4 81.5 83.7 90.2 83.2
4 31/12/17 2.2 (0.2) (3.3) (3.3) (8.0)
5 31/12/18 1.9 4.7 4.3 4.3 5.2
6

190122 JRS Update QD

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