JPMorgan Global Growth & Income PLC Results analysis from Kepler Trust Intelligence

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JPMorgan Global Growth & Income PLC

05 March 2021

JPMorgan Global Growth & Income (JGGI)

05/03/2021

Results analysis from Kepler Trust Intelligence

-- Today JGGI released its interim results for the period ending 31 December 2020. Over the six months the trust delivered NAV total returns of 15.4%, while the price total return to shareholders including dividends reinvested was 17.1%.

-- At the current share price (05/03/21) JGGI yields 3.4%, and two quarterly dividends were paid during the period equating to 6.58p. The board anticipates a full year dividend of 13.16p, which is nearly 1% higher relative to the previous year.

-- The managers believe we are at the start of a new market cycle. They believe that the recovery is not a short-term event and will take multiple years, however they are positive on the outlook and have reflected this in their portfolio positioning.

Kepler view

JPMorgan Global Growth & Income (JGGI) has delivered another strong set of results for investors, demonstrating the managers' ability to outperform the benchmark. In NAV terms The trust has now outperformed its benchmark by a margin of 1.5%, 6.6% and 1.9% over one year, five years and ten years respectively.

Looking ahead, while mass vaccinations will take time, and there is the possibility of complications, the return to some level of normality should result in a global economic recovery and significant uptick in corporate earnings. JGGI stands to benefit from this, with the managers shifting the portfolio away from stocks that have done particularly well in the pandemic and towards cyclical companies that should benefit from an economic rebound.

JGGI's income is directly tied to its NAV growth which is paid out in part from capital with a target pay-out of 4% of NAV as at the previous financial year-end. This allows JGGI to offer a different risk/return profile to that of its peers, freed from the more typical high-income names.

The managers will continue to focus on their strengths in the year ahead, which involves identifying structural trends, thinking long term, and finding great companies in which to invest. The trust currently (05/03/21) trades at a premium of 2.6%.

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March 05, 2021 10:21 ET (15:21 GMT)