JPMorgan Emerging Markets Investment Trust plc on Thursday noted potential opportunities with some companies likely to make record profit this year, as it reported that it underperformed against its benchmark.

The investment trust focused on long-term growth said its net asset value per share was 122.1 pence at June 30, up from 115.6p a year prior.

For the financial year to June 30, it reported an NAV total return of 7.2%, underperforming against 13.2% from the MSCI Emerging Markets index.

It declared a final dividend of 1.30p per share, up from 1.07p, increasing the total by 15% to 1.90p from 1.65p.

JPMorgan Emerging Markets said the year has been challenging for emerging markets as a whole, with China as the biggest drag on overall asset classes. However, it said that in other countries the outlook is improving ; that interest rates should come down; and that economic growth should accelerate.

Portfolio Managers Austin Forey and John Citron said: ‘We currently find an encouraging number of potential opportunities to command our attention, in all regions. ’Even in China, a number of companies are likely to achieve all-time high profits this year; and after four years of a bear market, valuations have come down a very long way. With much higher dividend yields and other forms of shareholder return slowly being implemented, the need for strong earnings growth to drive equity returns is reducing.‘

JPMorgan Emerging Markets shares rose 1.7% to 109.80 pence each on Thursday afternoon in London.

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