JPMorgan Global Growth & Income Investment Trust
Global Equity Income
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 — 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 �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 '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.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Loan Notes||7.34 %|
|Microsoft Corp||3.51 %|
|UnitedHealth Group Inc||3.22 %|
|Alphabet Inc A||2.93 %|
|Amazon.com Inc||2.55 %|
|Pfizer Inc||2.38 %|
|Prudential PLC||2.18 %|
|Ping An Insurance (Group) Co. of China Ltd H||2.10 %|
|Iberdrola SA||1.88 %|
|Pioneer Natural Resources Co||1.81 %|
|United States||52.91 %|
|United Kingdom||9.93 %|
|Asia - Emerging||5.93 %|
|Financial Services||22.36 %|
|Consumer Cyclical||11.76 %|
|Consumer Defensive||7.74 %|
|Basic materials||5.88 %|
Tim 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 Huysinga, managing director, is a senior portfolio manager in the Global Equities Team, based in London. 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 latterly a Japanese equity portfolio manager, after beginning his career at Lloyds Bank. Jeroen obtained a BA in Economics and International Studies from the University of Warwick. Jeroen is an associate of the Institute of Investment Management and Research.
Data provided by Morningstar.
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