JP Morgan Asian Investment Trust reveals weak performance in annual report

JPMorgan Asian Investment Trust released its annual financial report Wednesday, revealing a drop in final dividends.

The company announced a final dividend of 2.4p per share for the year ended September 30th 2012 at a total of £3,576,000, compared to £3,703,000 in the comparative period in 2011.

The firm's portfolio returned 10% of net of management fees and expenses, which were under the benchmark index of 15.4%.

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The weak performance was largely due to stock selection in Korea and China.

JP Morgan had invested in Korean autoparts markers Mando Corp and Hyundai Mobis which experienced earnings downgrades during the period.

In China the company had a large position in Sany Heavy Equipment which underperformed amid a decline in demand for mining equipment.

China's economy has also been causing concern for the company with a decline in growth and the effects stemming from the recent political handover. However, it has left related equities at seemingly good value, the company said in a statement.

"It is clear that, in hindsight, the manager did not move decisively at the beginning of our financial year to address the issues that had led to the 2011 underperformance and, as explained in the investment managers' report, when our new investment manager was appointed at the beginning of calendar year 2012, the portfolio was even then not repositioned swiftly enough," the firm said.

The board has conducted a review of the capabilities of JP Morgan Asset Management (UK) Limited and examined measures which have since been put in place to improve the firm's investment performance.

An annual meeting addressing the results will be held in January in London.

RD