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.

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%.

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

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021