2023 was a rollercoaster ride for investors, with geopolitical crises and a cost-of-living crisis, triggered by surging inflation and dramatic spikes in interest rates, all testing even the most experienced of investors. 2024 has begun in similar fashion and sentiment looks likely to remain uncertain in the short term. When investment markets are hard to read it may seem brave to contemplate new investments - yet there are still plenty of opportunities to be unearthed.
During unpredictable times, it is essential to tap into proven investment experience, backed by thorough research, and to not put all your eggs in one basket. A portfolio comprising a diverse range of assets can be a better way to manage risk while maximising the likelihood of consistent investment returns, although it does not remove the risk altogether.
Today’s global investment opportunities are becoming more complex every day and accessing the full potential of these diverse markets can be daunting. However, investment trusts provide a structured way to build a portfolio which maximises your potential returns while helping to minimise the risk inherent in any investment.
An investment trust is a professionally managed, closed-ended, pooled investment vehicle that offers several valuable benefits to investors, including:
- Closed-end Structure: Investment trusts have a closed-end structure. By fixing the number of shares issued, the investment trust’s portfolio manager has the freedom to execute buy and sell decisions when the timing is most advantageous, rather than being subject to the vagaries of when investors decide to invest or sell trust shares. (Investors should note that closed-end trusts may trade at a premium or discount to their net asset value, potentially resulting in investors buying assets at a price above their market value or selling shares at a price below the underlying assets’ true market value).
- Stock Market Listing: Investment trust shares are listed on the London Stock Exchange, which allows investors to conveniently buy or sell shares, and easily find the current price of shares.
- Ability to Borrow: Investment trusts can borrow to increase the amount of money invested (“gearing”), allowing them to quickly take advantage of emerging opportunities without having to sell existing holdings. Gearing can enhance returns during rising markets and exacerbate losses during declining markets.
- Accountability: An independent board of directors, elected by shareholders, oversees the operation and management of investment trusts. The board also has oversight of a fund manager’s performance and the power to replace an underperforming manager. Shareholders have the right to vote on all substantive issues that impact the trust’s management.
- Competitive Pricing: Investment trusts typically have lower operating costs than open-ended funds, which may result in greater wealth accumulation over the long term.
- Steadier Income: An investment trust can retain up to 15% of its income each year, which can then be used to supplement income when needed in future years and help provide level income payments to investors.
- Accessibility: Investment trust shares can be bought and sold through most leading online investment platforms. These third-party platform providers will usually allow you to hold your shares in an Individual Savings Account (ISA), Junior ISA and Self-Administered Personal Pension (SIPP) - all of which bring potential tax advantages.
Why J.P. Morgan Asset Management
Successfully tapping global investment opportunities via investment trusts requires an experienced and trusted partner with a long-term track record of strong performance.
At J.P. Morgan Asset Management, our singular goal for more than 150 years has been to help our clients build stronger portfolios. Our global strength, local expertise and team-based approach means we can undertake the in-depth on-the-ground research which uncovers opportunities others may miss. By working with us, institutions, intermediaries, and individual investors have benefited from key advantages unique to J.P. Morgan Asset Management, including:
- Size and scale: Responsible for USD 2.8 trillion in assets globally1, J.P. Morgan Asset Management is supported by over 1,300 investment professionals with an annual research budget of USD 321mm2, which is used for the expressed purpose of uncovering new investment opportunities and mitigating portfolio risks.3
- Wide range of choices: Our investment trusts cover a broad range of global markets, and investment styles to meet investors’ varied investment objectives (whether this be income, growth or a combination of both) and risk profiles.
- Performance results: Past performance, of course, should never be used to predict current or future returns. However, we do have a proud record of delivering attractive investment results. Our JPMorgan American Investment Trust plc was a winner at the 2023 AJ Bell Investment Awards in the North American Equity – Active category.4
- JPMorgan Global Growth & Income plc was one of the top investment trusts for secondary fundraising in 2023, raising £181 million, reflecting its popularity amongst retail investors. The trust was also the second most viewed trust on the Association of Investment Companies website in 2023.5
- Amongst investment trusts under Morningstar research coverage, JPMorgan American Investment Trust plc was the top performer in 2023 with JPMorgan Japanese Investment Trust plc also joining it in the top 10.6
- In November 2023, two J.P. Morgan Investment Trusts celebrated victories at the Investment Week Investment Company of the Year Awards. These were JPMorgan European Growth & Income plc (Europe category) and JPMorgan Global Growth & Income plc (Overseas Income category). These awards are highly coveted as they recognise consistently strong investment performance.7, 8
- Deep-rooted culture: Sustained outperformance is a function of an enduring culture. Maintaining the continuity of the people and processes that created a record of historical achievement is foundational to future success.
Getting started
Long-term investors interested in building a portfolio of diversified, global assets from one of the UK’s leading investment trust providers, should contact their financial adviser. For more information about the full range of J.P. Morgan investment trusts, including investment objectives, risks, and fees click here.
More Insights
1 Note: AUM as of September 30, 2023. Source: J.P. Morgan Asset Management; as of September 30, 2023. Due to rounding, data may not always add up to the total AUM. AUMs shown do not include custom glide path and retail advisory assets.
2 Source: J.P. Morgan Asset Management; As of September 30, 2023,
3 https://am.jpmorgan.com/gb/en/asset-management/per/about-us/
4 https://investmentawards.ajbell.co.uk/winners
5 https://www.theaic.co.uk/aic/news/press-releases/investment-company-2023-review-updated
6 https://www.theaic.co.uk/aic/news/press-releases/the-top-20-most-viewed-investment-trusts
7 https://www.morningstar.co.uk/uk/news/244600/the-best-and-worst-performing-investment-trusts-of-2023.aspx © 2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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