JPM Japanese trust continues to struggle

Positions in global cyclical companies and an underweight in utilities dragged down returns on the J...

Positions in global cyclical companies and an underweight in utilities dragged down returns on the JPMorgan Japanese investment trust over six months to 31 March. The vehicle registered an NAV loss of 14.8% over the period, during which time the Topix fell 10.3%. Manager James Elliot said he continues to look with circumspection on the utility sector. “It has attracted attention as a safe haven but valuations are not reflective of likely earnings or cashflow growth particularly with cost input pressure rising and heavy capital expenditure commitments likely in the next 18 months,” he ...