Edison initiates on JPMorgan Global Grwth & Income
London, UK, 27 September 2016
Edison initiates coverage of JPMorgan Global Growth & Income (JPGI)
JPMorgan Global Growth & Income (JPGI), previously JPMorgan Overseas IT, uses a disciplined and research-intensive approach to identifying 50-90 'best ideas' from around the world, with the aim of achieving capital appreciation in excess of the MSCI AC World index. It has recently adopted a new distribution policy whereby at the start of each year it will announce a dividend equivalent to at least 4% of NAV, to be paid in quarterly instalments. The board and management see this level of distribution - which may come from capital or income returns - as sustainable, and the predictability of the income stream as well as the higher yield should increase the attraction of the trust from investors who seek income as well as growth, potentially leading to a narrowing in the discount.
JPGI's discount to cum-income net asset value stood at 9.4% at 23 September, in line with or wider than the averages over one, three, five and 10 years, but well below the five-year high of 15.5% seen at the start of July following the result of the UK's EU referendum. Peers in the AIC Global Equity Income sector tend to trade closer to par, and it is reasonable to assume that once the effects of JPGI's new, higher distribution policy begin to be felt, demand from income-seeking investors could drive a rerating to a level closer to that of the peer-group average. The board has set a maximum discount target of 5%.
Click here to view the full report
All reports published by Edison are available to download free of charge from its website: www.edisoninvestmentresearch.com
About Edison: Edison is an international equity research firm with a team of over 70 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
Contact details: Learn more at www.edisongroup.com and connect with Edison on:
|
|
|
|
|
|
|
YouTube |
|
|
Google+ |
This information is provided by RNS
Latest directors dealings
- 1 hour ago Informa
- 1 hour ago Polarean Imaging
- 1 hour ago Solgold
- 1 hour ago C&C Group (CDI)
- 2 hours ago Cavendish Financial