London income trust reveals "significant swing" as net asset value triples expectations

A London income trust has announced that its net asset value has returned to more than triple market expectations.

Jupiter Emerging & Frontier Income Trust PLC (JEFI) has reported that in the past six months, its net asset value (NAV) total return was 23.9 per cent, more than triple the benchmark of 7.7 per cent.

The company said that the results were due to a “significant” swing in its favour, with investors coming back to JEFI.

John Scott, chairman, commented: “A year ago, I said that this was a time for strong nerves, and in the 12 months that have passed these have been demonstrated by the company’s investment adviser, which has broadly stuck to its guns and adhered to its investment philosophy - with excellent results.

“The past six months have seen a significant swing of investor sentiment in our favour.

“While investment patterns rotate, a consistent, repeatable investment process underpinned by sound principles tends to deliver superior returns over the long term.

“Happily, we are now seeing good recovery in our revenue account, which should allow us to revert to the progressive dividend policy we intend to offer to shareholders.”

Ross Teverson, fund manager of JEFI, added: “In a world where the valuations for many asset classes look high relative to history, the opposite continues to hold true for many companies and sectors within emerging and frontier markets, despite the potential for strong long-term growth.

“As investors continue to look past the impact of the pandemic, we expect that the scope for operational recovery and rerating from attractive valuations will be positive for stock performance.”

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