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JPMorgan China Growth & Income PLC on Friday posted a lower total dividend as its full year performance lagged its benchmark index. The investor in Chinese companies reported a net asset value total return of 29.3% for the financial year that ended September 30, underperforming its benchmark, the MSCI China Index, which returned 30.3% over the same period. The trust said it is ‘disappointing’ that its return underperformed the benchmark, noting its particular concern over its underperformance over three and five years also. The company explained that the benchmark’s rise has been driven by value-focused stocks, ‘particularly companies controlled by state-owned enterprises.’ JPMorgan China Growth & Income said its investment manager focuses on long-term prospects of quality growth companies, including A share companies, which it said lagged the initial market rally. ‘Stock selection also proved a drag on the company’s performance,’ said the trust. NAV per share grew 24% to 338.8p from 273.3p. Back in July, JPMorgan China Growth & Income declared a fourth quarterly dividend of 2.73p, down 1.1% from 2.76p a year earlier. Its total dividend for the financial year fell 1.1% to 10.92p from 11.04p. Shares in the trust were down 0.2% at 285.50 pence on Friday afternoon in London. At the trust’s upcoming annual general meeting in February, its board is proposing changes to its investment policy to amend current restrictions. It seeks approval to amend restrictions, which include the maximum permitted exposure to a single company, which it said has led it to being underweight companies such as Tencent Holdings Ltd and Alibaba Group Holding Ltd. ‘The board is encouraged by the investment manager’s steps to improve our company’s performance, particularly in terms of stock selection&The investment manager has concentrated our portfolio in areas that are well positioned to capitalise on emergent opportunities, including a recovery in consumer spending in China and high-quality technology. The board shares the investment manager’s optimism about the long-term prospects for the Chinese stock markets,’ said Chair Alexandra Mackesy. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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