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
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
1.26
3 Year Alpha
3.81
Yield
3.8 %
Benchmark
MSCI ACWI NR USD
Fund Size
£ 423.12 million
NAV
320
Gearing
105
Discount Premium
1
The Company's 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 Company's investment policy is to: provide a diversified portfolio of approximately 70 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 7.32 %
Alphabet Inc A 4.75 %
Microsoft Corp 3.05 %
UnitedHealth Group Inc 2.99 %
Prudential PLC 2.14 %
Pioneer Natural Resources Co 2.05 %
Union Pacific Corp 1.83 %
Visa Inc Class A 1.74 %
Standard Chartered PLC 1.74 %
Citigroup Inc 1.73 %
Region %
United States 50.46 %
Eurozone 17.56 %
United Kingdom 10.80 %
Japan 6.69 %
Asia - Emerging 5.19 %
Sector %
Financial Services 20.33 %
Technology 15.65 %
Industrials 13.85 %
Consumer Cyclical 13.62 %
Healthcare 12.97 %
Energy 6.81 %
Basic materials 6.12 %
Name
JP Morgan Asset Management (UK) Ltd
Address
EC4Y 0JP, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

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.

Jeroen Huysinga
Joined 09/26/2008

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.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

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.