JPMorgan Global Growth & Income Investment Trust

Global Equity Income

Update: 6 August 2019: JP Morgan Global Growth & Income IT retains ‘under review’ status

New team in place, but fund remains under review pending departure of longstanding manager. Full details regarding why we have taken this decision can be found here.

Update: April 2019: JP Morgan Global Growth & Income placed under review

The Money Observer Rated Investment Team has moved to put JP Morgan Global Growth & Income, under review. Full details regarding why we have taken this decision can be found here.

 

Rated Fund 2018-19. Delivers predictable quarterly income distributions

JP Morgan Global Growth & Income, named Money Observer’s Best Global Income investment trust in 2018, is one of a small band of trusts that takes advantage of the ability to distribute capital as income. It generates an annual dividend of 4% of its net asset value, paid quarterly, regardless of income earned.

The trust has done so since 2016 when it moved to the global equity income sector because its modest size meant it tended to be overlooked in the global sector.

The strategy affords fund managers Jeroen Huysinga and Timothy Woodhouse the freedom to invest in growth sectors, where dividend yields may not be that high. They invest in 50 to 90 ‘best ideas’ from across world stockmarkets.

With its performance record looking even more competitive in its new sector, the trust has achieved a premium rating. It has traded on a small single-digit premium for most of the past 18 months, having been on a discount typically in the mid to high single digits in the previous 18 months.

The trust has outperformed its benchmark, the MSCI World index, over three, five and 10 years. However, the strategy can eat into capital, especially in a stockmarket downturn when shares are losing value, and recent performance has not been as strong.

Nevertheless, it remains a “good alternative for the income investor to portfolios dominated by higher yielding companies”, says David Liddell, a director of IpsoFacto Investor, an investment advisory service.

The trust has a low base fee of 0.4% and a performance fee capped at 0.8% of assets. Ongoing charges at the end of 2018 were 0.56%.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
JPMorgan Global Growth & Income Investment Trust
Manager
JP Morgan Asset Management (UK) Ltd
Type
Closed Ended Investment Company
ISIN
GB00BYMKY695
Sector
Global Equity Income
Launched
21/04/1887
OCF
0.63 %
Risk Rating
5
3 Year Sharpe
1.47
3 Year Alpha
4.31
Yield
3.7 %
Benchmark
MSCI ACWI NR USD
Fund Size
£ 445.74 million
NAV
326
Gearing
105
Discount Premium
1
The investment objective is to achieve income and capital growth from world stock markets and aims to achieve this objective by holding a diversified portfolio of investments in which the portfolio manager has a high degree of conviction. The investment policy is to provide a diversified portfolio of approximately 50 to 90 stocks in which the investment manager has a high degree of conviction. Portfolio construction is driven by bottom-up stock selection rather than geographical or sector allocation. Currency exposure is predominantly hedged back towards the benchmark.
Holding %
Loan Notes 6.82 %
Microsoft Corp 3.81 %
Alphabet Inc A 3.70 %
Amazon.com Inc 2.93 %
JPM GBP Liquidity LVNAV X (dist.) 2.74 %
Honeywell International Inc 2.60 %
Coca-Cola Co 2.34 %
Texas Instruments Inc 2.14 %
Airbus SE 2.10 %
LVMH Moet Hennessy Louis Vuitton SE 2.10 %
Region %
United States 57.22 %
Eurozone 16.02 %
United Kingdom 6.44 %
Sector %
Financial Services 20.65 %
Technology 17.44 %
Consumer Cyclical 12.77 %
Industrials 12.54 %
Healthcare 11.37 %
Consumer Defensive 7.11 %
Energy 6.92 %
Name
JP Morgan Asset Management (UK) Ltd
Address
EC4Y 0JP, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Rajesh Tanna
Joined 03/14/2019

Rajesh Tanna, Managing Director, is a portfolio manager for the J.P. Morgan Asset Management European Equity Group – Europe Research Driven Process (RDP) Team. Raj moved to J.P. Morgan Asset Management from J.P. Morgan Private Bank in September 2016, where he was also a European equity portfolio manager. An employee since 2011, Raj joined the Private Bank as a European Equity Strategist. Previously, Raj worked as a long-only European equity portfolio manager for 11 years predominantly with Credit Suisse, where he also held a position as a risk manager. Raj also spent 18 months as a portfolio manager with a small asset management boutique, FOUR Capital. Raj holds a BA in Economics and International Studies, and a Master's degree in Management Science and Operational Research, both from Warwick Business School. He is a CFA Charterholder.

Helge Skibeli
Joined 03/14/2019

Helge Skibeli is managing director of J.P. Morgan Investment Management and has been an employee of JPMIM or its affiliates (or one of their predecessors) since 1990. Helge became head of research in March 2002. Prior to his current role, he was head of J.P. Morgan Investment Management (Singapore) and head of Investment for Asia Pacific ex-Japan. Before this, he was head of Pacific Rim ex-Japan research. Previously, Helge was an analyst in the Equity Research department in London where he followed the automobile and steel sectors. Prior to that, he worked in security analysis and equity sales in the Norwegian market. Helge obtained an M.A. in general business from the Norwegian School of Management and earned an M.B.A. from the University of Wisconsin. He is a CFA charterholder.

Timothy Woodhouse
Joined 09/20/2017

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.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.