J.P. Morgan Brazil Investment Trust sees positive returns in Brazil
Investment trust makes encouraging long-term assessment of Brazil
LONDON 11 July 2011 – JPMorgan Brazil Investment Trust has announced its final results for the period ended 30th April 2011.
Through its first annual reporting period, the Company recorded a year of solid performance with a total undiluted return on net assets of +11.7% (+10.6% return on a diluted basis), materially outperforming the benchmark, the MSCI Brazil 10/40 Index, which returned +5.3% for the same period. The capital return to Ordinary shareholders was +9.3% and the return to ‘Units’ (comprising 5 Ordinary shares and 1 Subscription share) was +12.4%.
Chairman of the Board of JPMorgan Brazil Investment Trust, Howard Myles, said, “We have seen strong investment performance since launch. Luis Carrillo and Sebastian Luparia’s approach has been for stock selection based on investee companies’ growth potential, financial strength and quality of management. The portfolio’s focus on domestic growth reflects the investment managers’ view of growth prospects over the next five years.
“Despite the positive performance this year, the investment climate remains volatile. There are still a number of economic and political challenges for Brazil to face as key economic and business indicators signal some loss of strength in its economy. As domestic inflation and global issues continue to weigh on market sentiment, the strength and sustainability in Brazilian equity market valuations is likely to be restrained in the near term.”
JPMorgan Brazil Investment Trust portfolio managers, Luis Carrillo and Sebastian Luparia, said, “Overall the portfolio reflects our view that the next five years will be about domestic growth and we exploit this by being significantly different to the benchmark. Our single largest investment view expressed in the portfolio is to be overweight domestic growth stocks, typically mid-cap, and underweight the mega-cap global cyclicals.”
In addition, the Company’s Ordinary share price increased from an opening price on the first day of trading of 102.0p to 111.5p at 30th April 2011 and the Subscription share price increased from its opening price of 12.5p at launch to 30.0p at 30th April 2011.
For more details about JPMorgan Brazil Investment Trust, visit www.jpmbrazil.co.uk
J.P. Morgan Asset Management has recently launched a guide on investment trusts for IFAs, Investment Trusts: the case for consideration.
Contacts
J.P. Morgan Asset ManagementJayne Fieldhouse, Media Relations
Telephone: 020 7742 8337
Email: Jayne.e.fieldhouse@jpmorgan.com
Lansons Communications
Lucy Banks
Telephone: 020 7294 3689
Email: lucyb@lansons.com
Notes to Editors
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.3 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at March 31st 2011) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority. Registered in England No. 288553. Registered office: 125 London Wall, London EC2Y 5AJ.
Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise. Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors. Stock market linked investments carry a number of inherent risks. These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets. Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor’s capital.