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JPMorgan Asia Growth & Income PLC posted a half-year profit on Wednesday following the post-Covid economic recovery in Asia. The investor in Asia-Pacific entities said return on net assets in the half-year that ended March 31 was 11.4%, following a loss of 6.9% at the same point last year. The company significantly outperformed its benchmark of 4.9% on the MSCI Asia ex Japan Index. The company said returns improved as Asian markets were buoyed by China’s abandonment of its ’zero Covid’ policy and a gradual shift towards a pro-growth, pro-business policies by Chinese authorities, boosting regional equity markets. Pretax profit swung to £39.0 million from a net pretax loss of £30.2 million a year prior, as the company reported a gain on investments of £37.2 million, turned from a loss of £31.2 million a year ago. However, the company’s net asset value per share dropped by 3.8% to 404.6 pence from 420.5p the previous year. The company paid two interim dividends during the period totalling 8.0p, having paid a total for the previous year of 16.5 pence. The company said dividends will continue to be equivalent to 1% of its net asset value. Looking forward, the company is optimistic about the market outlook and its ability to continue delivering capital gains and an attractive income to shareholders over the long-term. Chair Richard Stagg said: ‘Very favourable structural trends such as digitalisation, urbanisation and the expansion of the middle class should continue to support rapid productivity increases and economic growth. ‘This vibrant environment is likely to generate many attractive investment opportunities. In addition, Asian equity market valuations look appealing compared with both the US and Europe.’ Shares in JPMorgan Asia Growth & Income were down 1.0% at 349.00 pence in London on Wednesday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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