LONDON - JPMorgan China Growth & Income PLC (JCGI) reported its final results for the fiscal year ending September 30, 2024, revealing a net asset value (NAV) total return of 3.6%, which lagged behind the MSCI China Index's return of 12.7%. The company's share price return was slightly lower at 2.3%. Despite underperforming its benchmark for the year, JCGI highlighted its decade-long achievement, outperforming the index with a NAV total return of 90.0% compared to the benchmark's 69.0%, and a share price return of 87.6%.
The company's performance was influenced by its focus on quality and growth stocks, which did not perform as well as value stocks, particularly those in state-controlled energy and financial sectors. Looking ahead, JCGI plans to pay a total dividend of 10.92 pence per share in the upcoming year, in line with its policy of distributing an annual dividend equivalent to 4% of the company's NAV on the last business day of the preceding financial year.
Alexandra Mackesy, Chairman of JCGI, acknowledged the underwhelming performance relative to the benchmark but emphasized the company's solid long-term track record. She cited recent government economic initiatives in China that have led to an improved market sentiment, with companies expressing cautious optimism about the future.
JCGI's portfolio managers expressed confidence in the future prospects for Chinese equities and their portfolio, citing attractive valuations, corporate reforms, and support from Chinese authorities for the economy and property sector as reasons for optimism. They remain committed to capitalizing on opportunities presented by economic recovery and structural changes to deliver long-term gains and outperformance to shareholders.
The information for this report is based on a press release statement.
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