Results analysis from Kepler Trust Intelligence

RNS Number : 8088N

JPMorgan Global Growth & Income PLC

01 October 2021

 

JPMorgan Global Growth & Income (JGGI)

01/10/2021

Results analysis from Kepler Trust Intelligence

JPMorgan Global Growth & Income (JGGI) has reported its full year results for the year end 30 June 2021. Over the year it managed to generate a NAV total return of 32.3% over its 2021 financial year, and a share price return of 33.0%, outperforming its benchmark, the MSCI ACWI Index, which returned 24.6%.

Much of this performance was the result of the team being allowed a greater amount of flexibility when selecting stocks, compared to more conventional equity income strategies, due to its policy of paying out 4% of NAV as a dividend. This led to JGGI paying a full year dividend of 13.16p per share for FY 2021, a 1% increase on the prior payout. Thanks to the success of JGGI's managers in navigating the various phases of the pandemic, and thus growing the NAV, the board expects to pay a dividend of 16.96p for the next financial year, which will be a 28.9% increase on its recent pay-out of 13.16p per share.

Kepler View

Since adopting its current dividend policy in 2016, JGGI has, in our view, been able to offer investors the unique combination of a high yield combined with a portfolio of quality-growth companies which are not typically associated with an equity income strategy. The trust's relatively idiosyncratic portfolio, when compared to more conventional equity income strategies, also allows it to offer income investors a strong source of diversification, offering investors access to high-growth names their income requirement would typically prevent them from holding.

JGGI's 12-month performance has been almost entirely driven by stock selection, contributing 8.4% to its outperformance. This was largely the result of the team holding high-quality companies during the pandemic, such as media and technology stocks, the COVID-19 'winners', combined with their subsequent rotation into cyclical names during mid-2020, in order to capitalise on the eventual economic rebound.

We believe that JGGI continues to offer income investors not only a strong source of income, but also the attractive ability to access the high-quality growth opportunities, something which, with hindsight, was key in effectively navigating the various phases of the pandemic-driven markets.

CLICK HERE TO READ THE FULL REPORT

Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.

 

END

 

 

NRADKDBPPBDDKKK