Fact sheet: JP Morgan Global Growth & Income IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL EQUITY INCOME
Sector
IT Global Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates JP Morgan Global Growth & Income IT

New for 2018. Delivers predictable quarterly income distributions

An advantage that investment trusts have over their open-ended counterparts for income-seekers is the ability to bolster dividends by using reserves, either via previously-earned income or drawing on capital gains.

JPMorgan Global Growth & Income is one of a small band of trusts that takes advantage of the ability to distribute capital as income. It pays out an annual dividend of 4 per cent of its net asset value regardless of income earned ヨ giving investors certainty of income.

This affords fund managers Jeroen Huysinga and Timothy Woodhouse the freedom to invest in growth sectors, where dividend yields may not be that high. David Liddell, a director of IpsoFacto Investor, an online investment advisory service, rates the trust as a ムuseful way for income-seeking investors to get exposure to a different sort of portfolio'.

However, such a strategy can clearly eat into capital, especially in a stock market downturn when shares are losing value.

The managers seek strong long-term returns by investing in a portfolio of 50 to 90 ムbest ideas' from across world stock markets. Portfolio construction is driven by bottom-up stock selection rather than geographical or sector allocation.

The board buys back its shares with the aim of maintaining an average discount to net assets of 5 per cent but investors have warmed to JP Morgan Global Growth & Income over the past 18 months and it now sits on a small premium.

It has a low base fee of 0.4 per cent and a potential performance fee capped at 0.8 per cent of assets. Ongoing charges at the end of 2017 were 0.57 per cent.<\p>

3 Year Performance
Fund Performance52.2%
Average of Rated Funds Group33.7%
Sector Performance37.4%
Fund information
Fund name
JP Morgan Global Growth & Income plc
Fund manager company
JP Morgan Asset Management UK
Fund type
Investment Trust
Fund managers
  • Timothy Woodhousesince 01/08/2017
  • Jeroen Huysingasince 01/09/2008
Accolades
Fund objective
To provide total returns and outperform the MSCI All Country World Index over the long-term by investing in companies based around the world. The Company makes quarterly distributions, that are set at the beginning of each financial year. On aggregate, the intention is to pay dividends totalling at least 4% of the NAV at the time of announcement. The manager is focused on building a high conviction portfolio of typically 50-90 stocks, drawing on an investment process underpinned by fundamental research. Portfolio construction is driven by bottom up stock selection rather than geographical or sector allocation. Currency exposure is predominantly hedged back towards the benchmark. The Company uses borrowing to gear the portfolio within a range of 5% cash to 20% geared under normal market conditions. The Company will repurchase its shares with the aim of maintaining an average discount of around 5% calculated with debt at par value.
Benchmark
  • MSCI AC World
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
10.7%
1 Year rank in sector
1/7
Sector
IT Global Equity Income
Yield
3.6%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.57%
Fund size
£406m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
122
Mid price
314.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
303.3
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+3.69
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
101
Top in this sector
Fund name1 Year
JPM Gbl Grw&Inc plc10.7%
Invesco Perp Select GE plc10.1%
Scottish Am Inv Co PLC9.6%
Hnd Int Inc Tst plc8%
Blue Planet Inv Tst PLC ORD 1P6.8%
...more in IT Global Equity Income

Performance snapshot

Holdings snapshot

  • No data available.
  • Others26.3%
    Banks13.3%
    Industrial Cyclicals10.3%
    Health Care9.1%
    Basic Industries7.9%
  • No data available.

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund3.5%-4.9%-0.3%10.7%52.2%101%
Sector2.7%-4.3%-2.1%5.9%37.4%60.9%
Rank within sector2 / 75 / 71 / 71 / 72 / 72 / 7
Quartile2nd3rd1st1st2nd2nd
Calendar performance
 YTD - 20182017201620152014
Fund-3.9%24.1%32.6%4.1%12.1%
Sector-3.4%17.6%25.6%1.7%2.4%
Rank within sector3 / 72 / 74 / 73 / 71 / 7
Quartile2nd2nd3rd2nd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-1.57
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.45
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.74
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
14.61
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
8.63
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.32
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.71
Price movement
52 week high339.5
52 week low293.25
Current bid price314
Current offer price315
Current mid price314.5
Region
No data available.
Industry sector
1Others26.3%
2Banks13.3%
3Industrial Cyclicals10.3%
4Health Care9.1%
5Basic Industries7.9%
6Retail6.9%
7Software5.6%
8Energy5.5%
9Media5.1%
Asset type
No data available.
Individual holdings
1ALPHABET INC4%
2UNITED HEALTH GROUP2.3%
3MICROSOFT CORP2.1%
4PRUDENTIAL PLC2%
5PIONEER NATURAL RESOURCES CO1.9%
6CITIGROUP INC1.8%
7Standard Chartered Plc1.7%
8SVENSKA HANDELSBANKEN1.6%
9DAIKIN INDUSTRIES1.5%
Management
Fund manager group
J.P. Morgan Asset Management
Fund manager company
JP Morgan Asset Management UK
Fund type
Investment Trust
Fund objective
To provide total returns and outperform the MSCI All Country World Index over the long-term by investing in companies based around the world. The Company makes quarterly distributions, that are set at the beginning of each financial year. On aggregate, the intention is to pay dividends totalling at least 4% of the NAV at the time of announcement. The manager is focused on building a high conviction portfolio of typically 50-90 stocks, drawing on an investment process underpinned by fundamental research. Portfolio construction is driven by bottom up stock selection rather than geographical or sector allocation. Currency exposure is predominantly hedged back towards the benchmark. The Company uses borrowing to gear the portfolio within a range of 5% cash to 20% geared under normal market conditions. The Company will repurchase its shares with the aim of maintaining an average discount of around 5% calculated with debt at par value.
Benchmark
  • MSCI AC World
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Timothy Woodhouse01/08/2017Tim Woodhouse, vice president, is a portfolio manager in the Global Equities Team. An employee since 2008, he was previously a research analyst in the European Equity Research Team, in London, working in the TMT sector. Tim obtained a BSc (Hons) in Economics from the University of York. Tim is a CFA charterholder.
Jeroen Huysinga01/09/2008Jeroen Huysinga is a portfolio manager in the Global Equities Team. An employee since 1997, he previously spent two years at Lombard Odier (UK) Ltd., where he was a Japanese equity portfolio manager. Prior to this, he held positions with the British Steel pension fund as a UK analyst and a Japanese equity portfolio manager, after beginning his career at Lloyds Bank. Education: B.A., Economics and International Studies, University of Warwick
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
JP Morgan Global Growth & Income plc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price303.3
CurrencyGBX
Price updated23/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJGP
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