Through its go-anywhere global approach, JPMorgan Global Growth & Income plc (JGGI) aims to deliver capital growth and income to help meet financial goals for every stage of life.
Lots of people choose to invest for a particular reason. It could be to get on the property ladder, to fund children’s education, to have a more comfortable retirement, or simply build a nest egg for peace of mind. Whatever the ambition, putting capital to work in a diversified and professionally-managed investment fund can potentially help to support a lot of goals through life.
JGGI is an investment trust managed with all these different ambitions in mind. As its name suggests, it’s a global strategy seeking to invest in high-quality companies from around the world. But – as its name also indicates – it has a clear mandate to deliver both capital growth and income for its shareholders.
Income, growth – or both
Capital growth potentially comes from rises in the Trust’s market share price, which is largely influenced by the performance of its underlying investments and, in turn, demand from investors. Although growth can never be guaranteed, JGGI has a track record of long-term share price growth1 – something that’s especially important in inflationary times to help the value of investor capital to keep pace with the rising cost of living.
Income, meanwhile, is generated through the annual dividends that JGGI pays out to its shareholders. To give investors some certainty over the level of income they’ll receive, the Trust aims to pay out 4% of its total net assets each year as dividends2.
These dividends are distributed as quarterly (i.e. three-monthly) payments. So the Trust could be useful for investors in need of regular income, such as retirees or anyone with regular outgoings.
Again, the level of dividends isn’t guaranteed. But the Trust’s ability to draw on both the capital and income generated by its underlying assets to meet its 4% income target – and its unique ability as an investment trust to build up income reserves over time gives a lot of confidence. JGGI’s commitment to delivering strong income is also reflected in the fact it has either maintained or increased its dividend every year for 16 consecutive years3.
Navigate changing markets
Another potential benefit for investors seeking to support their lifetime goals is the Trust’s investment flexibility.
As anyone who tracks the stock market knows, different types of company tend to perform well at different times in the economic/market cycle. So, from innovative tech stocks that thrive during periods of economic growth to ‘defensive’ healthcare companies that can generate profit even during economic downturns, the Trust’s freedom to invest in them all means it can be positioned to benefit at every stage of the economic cycle.
The intention is that shareholders have the potential to capture investment return whatever the market backdrop. This is reflected in the Trust’s performance, which has outperformed its benchmark, the MSCI All Country World Index, in seven out of the past 10 calendar years4.
Ready to find opportunity anywhere
This wide-ranging approach is only possible because of the strength of the Trust’s portfolio team and research resources.
JGGI’s portfolio managers have an average of 25 years’ industry experience, and work in partnership with over 80 J.P. Morgan Asset Management research analysts networked across the world.
With a state-of-the-art research platform that can share and update data and analysis on more than 2,500 companies globally, the team are arguably unrivalled in their ability to identify, track and compare opportunities in any industry and in any market, from the US to Europe, the Middle East to Asia-Pacific.
Focus on best ideas
What’s more they’re highly selective. To be included in the JGGI portfolio, every company must display specific traits, such as long-term earnings power, strong differentiation in their market and a high-quality management team that can demonstrate clear control of their company strategy. Plus of course, the shares need to be attractively valued relative to their earnings and growth potential.
This rigorous approach means that – although the team have a global universe of 2,500 companies to choose from – just 50-90 stocks have the credentials to make it into the portfolio at any one time. This concentrated selection also makes JGGI one of the highest-conviction global equity strategies on the market, intent on ensuring that strong companies are never diluted by weaker ones.
Economies of scale
A final feature that makes the strategy compelling as a ‘lifetime’ portfolio holding is its size. With over £3.4 billion5 in assets under management, it’s the largest trust in the AIC Global Equity Income sector and a FTSE 350 company. As well as providing the scale and resources needed to navigate world markets effectively, this provides the economies of scale to keep global investing cost-effective (its ongoing annual charge is just 0.44%6, for example).
Designed for life’s changing needs
JGGI’s high-conviction approach makes it a powerful contender as a long-term holding in many investor portfolios. It’s essential to take a long-term view since performance can fluctuate over shorter periods, as with any investment. But over the longer term, whether someone is at the stage of life where they need to target capital growth, income or a combination of both, the Trust is ready to navigate the challenges of market volatility, inflation and a fluctuating economic outlook.
At the same time, JGGI allows investors share in the potential of some of the most compelling companies in the world. Could there be a more interesting way to invest for life’s most important goals?