Last checked at 7 Feb 2023 07:15
London, UK, 7 February 2023
Edison issues update on JPMorgan Global Growth & Income (JGGI)
JPMorgan Global Growth & Income (JGGI) invests in long-term structural winners, although in these uncertain times, managers Helge Skibeli, Tim Woodhouse and James Cook are looking to balance the portfolio via a mix of defensive and quality stocks. The trust's strong performance track record continues. It has outperformed its benchmark, and its peers, over the short and longer term, thanks to the managers' stock selection skills. JGGI also continues to deliver competitive and rising dividends, funded from a mix of portfolio income and reserves. Recent decisions by the boards of Scottish Investment Trust and JPMorgan Elect to merge with JGGI attest to the relative attractiveness of the trust's investment offering, while also greatly increasing assets under management and liquidity, and reducing ongoing charges.
Given the current UK cost of living crisis, JGGI's dividend policy should appeal to UK investors seeking competitive, predictable and globally diversified income. The trust pays out at least 4% of NAV at the end of the previous financial year, part-funded from reserves if necessary. The FY23 dividend of 17.00p represents a prospective yield of 3.6%. Dividend payments have been supported over time by the managers' proven stock selection skills and their strong performance track record, which has delivered an average annualised return of 13.0% in NAV terms and 13.7% in share price terms over the past 10 years to end-January 2023, compared to a benchmark return of 11.6% over the same period. Investors may be further reassured about the resilience of JGGI's dividend payments by the fact that the trust has ample reserves to support several years of future dividend payments if required. The trust's global focus also offers UK investors diversification away from the domestic stock market. JGGI's share price has traded at a small premium to cum-income NAV for several years, supported by its high distribution policy and its strong performance. However, shares are currently trading close to parity with the trust's NAV, suggesting now may be a good time to invest.
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