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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Jpmorgan Global Convertibles Income Fund Limited | JGCI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 85.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 85.00 |
| Top Posts |
|---|
Posted at 20/10/2016 14:20 by davebowler Winterfloods;Defensive income with capital upside potential JPMorgan Global Convertibles Income initially performed strongly following its launch in 2013, having benefited from rising equity and credit markets. However, performance was negatively impacted by widening credit spreads during the second half of 2015. Having traded at a premium since launch, this more difficult period for markets coincided with a de-rating of the fund’s shares. In addition, currency exposure is fully hedged and as such, despite its very significant exposure to the US and Europe, the fund’s NAV has not benefited from the recent devaluation of Sterling. While share price returns have therefore been disappointing, the NAV has proved relatively defensive during periods of volatility and the fund’s prospective dividend yield of 4.9% is undoubtedly attractive. Moreover, the Board has stated that it would expect to buy back shares if the discount to NAV “exceeds 5% for any significant period of time”. We think that downside discount risk is therefore limited and that the current discount of 9% represents an attractive entry point. Taking all of this into account we continue to recommend the fund within the fixed income allocation of our model portfolio. n Portfolio diversification has been increased over recent months and, with the approval of the Board, the managers have adopted a greater focus on total returns. While the fund’s portfolio yield has therefore fallen, the managers are confident that the investment strategy is capable of generating the necessary returns to achieve the targeted dividend. The Chairman has previously stated that it is “both achievable and desirable to maintain the dividend at the current level, even if it occasionally requires the use of capital” and in the fund’s recent annual results he re-iterated that it is the Board’s intention to maintain the aggregate annual dividend at 4.5p per share. n Convertibles provide the potential for participation in equity upside with the downside protection of a bond. JPMorgan Global Convertibles Income is largely invested in “bond like” and “balanced̶ |
Posted at 03/4/2016 07:37 by jonwig Thanks - I've more or less stopped following this. So it has 104 holdings, and will behave as a tracker of convertibles. So many are sub-investment grade and I don't think a target dividend of 4.5p is all that attractive.I've worked out that management fees are about 0.5% of net assets - reasonable. If there's a performance fee, it doesn't look likely to be awarded any time soon. |
Posted at 01/9/2014 12:32 by davebowler Attractive income, cautious exposure to equitiesJPMorgan Global Convertibles Income has enjoyed a strong start to its life, having consistently traded at a premium to NAV and grown its market capitalisation to £183m. Convertible bonds have the potential to provide an attractive yield as well as an element of participation in equity upside, while also retaining some downside protection. The portfolio is generally focused on higher yielding convertibles and the fund’s structure allows the manager to take advantage of some of the universe’s smaller, less liquid investment opportunities. In our view, the fund benefits from JPMorgan’s significant resource and consequent access to new issuance. We therefore believe it represents an attractive option for investors seeking an above‐market yield combined with defensive exposure to equities. n JPMorgan Global Convertibles was launched in June 2013 when it raised £136m. It invests globally in convertible bonds and is managed by Antony Vallee, Global Head of Convertible Bonds at JPMorgan Asset Management. We believe the fund benefits from JPMorgan’s significant resource and access to new issuance. n Convertibles provide participation in equity upside with the downside protection of a bond. The fund is largely invested in “bond like” and “balanced convertibles”, which offer higher yields with lower equity sensitivity. However, small and mid‐cap companies in which the fund is invested are likely to have a higher beta to the wider market. In our view, the fund therefore represents an attractive option for investors seeking an above market yield with cautious exposure to equity markets. n The portfolio’s duration is relatively short at only 3.8 years, mitigating a degree of interest rate risk. The equity optionality of convertibles could offset the detrimental impact of rising interest rates on bond valuations. n The fund is unique within the UK listed closed‐ended fund universe. It also makes good use of the closed‐ended fund structure, which allows the manager to take advantage of smaller, less liquid investment opportunities. This is reflected in the portfolio’s average credit rating, with only 20% being investment grade. However, the weighting to smaller companies with higher yields also allows it to target a dividend of 4.5p per share in its first financial year. This prospective dividend yield of 4.0%, compares favourably to that of broader equity markets. *JPMorgan Global Convertibles Income Fund is a corporate broking client of Winterflood Securities |
Posted at 13/3/2014 06:43 by jonwig Woodcutter - I think you're right, but people will pay a premium for yield these days.Holding non-investment grade will be their only chance to keep the dividend high. By the way, I bought Calamos High Yield and Convertible Fund (NASDAQ:CHY). |
Posted at 04/9/2013 12:32 by 40t Useful summary in the IC, just out, covering JGCI and others - quoting 7.4% p.a. average (UBS Global Convertibles Index) from 1994 to 2012 compared with 5.3% on the MSCI World index. |
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