(Alliance News) - JPMorgan Global Emerging Markets Income Trust PLC on Thursday noted an uncertain geopolitical outlook, citing the upcoming US presidential election and the war in Ukraine.
The investor in emerging market companies with higher than average dividend yields said net asset value declined 5.8% to 140.9 pence per share as at January 31 from 149.5p a year prior.
Total return was negative 2.4% for the six months to January 31, compared to its benchmark's negative 5.0% return. The benchmark is the MSCI Emerging Markets Index with net dividends reinvested in sterling terms.
The company's total return to shareholders however, including the share price return and dividends, was negative 5.0%.
Chair Elisabeth Scott said: "Whilst the decline in share price and NAV over the six months is disappointing, I want to draw your attention to the fact that performance over periods of three, five years and beyond is significantly ahead of the benchmark, reflective of the company's long-term approach and testament to the experience of the portfolio managers and strength of their process."
Looking ahead, she said: "The geopolitical outlook remains uncertain as tensions continue with the war in Ukraine currently showing no signs of abating and elevated tensions across the Middle East. The US elections and the consequences for relations with China could provide further challenges.
"However, there are reasons to be optimistic on the outlook for Emerging Markets. Global inflation is receding and there are expectations that there will be a soft landing for the US economy followed by interest rate cuts later this year. While these might not come about as quickly as many had previously thought, this has provided comfort to the markets."
JPMorgan Global shares were 0.4% higher at 132.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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