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Results analysis: JPMorgan Global Growth & Income

JGGI has generated strong outperformance over its 2021 financial year, effectively navigating the pandemic while still providing an attractive yield…
David Johnson
Last update 01 October 2021

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by JPMorgan Global Growth & Income . The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

  • JPMorgan Global Growth & Income (JGGI) has reported its full year results for the year end 30 June 2021. JGGI continues to operate with its policy of paying out 4% of NAV as a dividend, using the NAV at the end of the preceding financial year. This led to JGGI paying a full year dividend of 13.16p per share for FY 2021, a 1% increase on the prior payout. The board expects to pay a dividend of 16.96p for the next financial year, which will be a 28.9% increase on the recent payout. 
  • JGGI reported a NAV total return of 32.3% over its 2021 financial year, and a return of 33.0% in share price terms, outperforming its benchmark, the MSCI ACWI Index, which returned 24.6%. JGGI’s performance has come almost entirely through stock selection, whereby the team have been able to successfully navigate the COVID-19 driven markets, rotating into cyclical stocks as the market began to price in the post-pandemic recovery.
  • The team highlight both the performance of the trust’s high-quality holdings during the initial phase of the pandemic, as well as its more cyclical holdings during the latter parts of 2020 and early 2021, after they had purchased cyclical companies such as Lyft and American Express. The recovery in cyclical stocks has been so strong that the team have already begun to trim their holdings and are now aiming to position around the ‘reopening’ winners: high-quality companies whose share prices still remain temporarily depressed by the pandemic.
  • There have been a number of operational changes to the trust over the 2021 financial year, including the issuance of a £20m 15-year fixed rate note and the adjustments which have been made to JGGI’s investment policy in order to give its managers more flexibility.
  • While 2021 will be the last year for JGGI’s current chairman, Nigel Wightman, he remains positive on the outlook for JGGI: “As I retire, I believe that the future of the company is bright. As ever, the global economy faces significant challenges. … However, our investment managers have demonstrated their ability to rise to every challenge and I expect them to continue to be able to identify successful companies in an environment that will be constantly evolving.”

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