Fund Profile

JPMorgan Asia Growth & Income 10 August 2023

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by JPMorgan Asia 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.

Overview
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Overview

Managers Ayaz Ebrahim and Robert Lloyd aim to provide investors in JPMorgan Asia Growth & Income (LON:JAGI) core exposure to Asia through a portfolio of quality companies with a structure that offers both capital growth and a reliable Dividend. They utilise the full extent of JPMorgan’s extensive regional resources, which includes over 100 professionals based in a number of on-the-ground offices across the continent. This team have an extensive history of investing in the region and have built an enviable research capability. Ayaz and Robert will utilise this in their process, which combines top-down analysis and bottom-up fundamental research with the aim of building a portfolio of quality companies, tapping into the long-term growth themes in the region, but with an eye on potential risks (see Portfolio).

This approach has driven outperformance of the benchmark over both the long term and short term. Asia had a difficult year in 2022, partly as a result of the fallout from China’s zero-covid policy, but in the subsequent bounce into 2023, the managers have delivered strong outperformance of the benchmark. They believe their approach of offering core, risk-aware exposure will continue to help deliver outperformance over the long term too (see Performance).

JAGI’s shares are trading at a Discount to NAV that is one standard deviation wider than the five-year average. The shares have traded at a premium for sustained periods in the past five years, most recently in early 2022, but have slipped to a wide discount as investor sentiment towards the region has soured. The board has been active in the past year with buybacks in attempting to narrow this discount.

Analyst's View

We believe JAGI offers investors exposure to the exciting growth opportunities in Asia with the reassurance of a core approach, including a reliable dividend that is embedded into the process. It can be seen as a lower risk way into an asset class that has a number of long-term growth themes versus some of its peers. As such, we believe JAGI can be considered as a vehicle to offer sleep-at-night exposure to the attractions of Asia.

JAGI’s Discount is arguably an opportunity for long-term investors at the current level. The shares have traded at a premium for notable periods in the past five years, which we believe is evidence of its attraction amongst the peer group. However, they are currently trading almost one standard deviation wider than their five-year average and within the range the board has indicated it will buy back shares. We argue this could be viewed as a floor for the discount, which may prove an opportunistic entry point.

The trust’s Dividend can also be seen as a further attraction. We believe the approach of paying this from NAV allows the managers to focus on identifying the best total return opportunities for the trust but still provides investors with the reassurance of a dependable income stream. Whilst the actual amount may vary, it further adds to the appeal of an all-round core exposure to the region.

Bull

  • Trust is trading at a wide discount
  • Dividend approach offers reliable income and capital growth opportunities
  • Experienced management team backed up by extensive resources

Bear

  • Core exposure means trust could underperform more aggressively positioned peers in rising markets
  • Active management can lead to periods of underperformance as well as outperformance
  • Dividend amount can vary and will fall in line with the trust’s NAV
Continue to Portfolio
2024 Kepler Income & Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for income & growth... Find out more

Fund History

17 May 2024 Foot on the brakes
The US will struggle to stop China…
11 Apr 2024 Fund Analysis
JAGI’s managers believe Asia is showing the green shoots of a recovery…
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
15 Dec 2023 Results analysis: JPMorgan Asia Growth & Income
JAGI delivered another year of benchmark beating returns...
15 Dec 2023 What next for Asia?
India looks expensive, but the region as a whole is attractively valued…
18 Aug 2023 We’re all going on a summer holiday
Sustained tourism demand has fund managers looking to the sector…
10 Aug 2023 Fund Analysis
JAGI offers core exposure to Asia, and is trading on a wide discount relative to its own history…
05 Jul 2023 Silk Road Strife
The Asian narrative has been dominated by the India vs China debate, but on which side of the line have investment trust managers fallen?
23 Jun 2023 Mind games
AI may be dominating headlines but investors need not redraw their portfolios…
09 Jun 2023 Far out
When considering reshaping your portfolio, don’t overlook emerging markets…
13 Mar 2023 (Re)open the floodgates
JAGI’s distinct approach to stock picking means it has maintained exposure to Chinese consumer stocks poised to benefit from the country’s reopening…
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
06 Jan 2023 Fund Analysis
Asia is arguably cheap, which JAGI may be able to capitalise on with its core approach…
20 Dec 2022 Results analysis: JPMorgan Asia Growth & Income
Asia’s long-term prospects still look strong despite a tough year for markets…
15 Dec 2022 It’s a numbers game
The projected growth, and wealth, of Asian populations supports the long term outlook for the region in spite of a troubled short term outlook for equities everywhere…
02 Nov 2022 The stability dividend
Our analysis shows that trusts paying a regular income suffer less discount volatility...
07 Oct 2022 Are the China contrarians right?
Maybe it’s not all so bad in the world’s second-largest economy…
28 Sep 2022 Mind the gap
While chaos reigns in the short-term for markets, some investors see a growing disconnect between prices and reality...
28 Sep 2022 Slides and Audio: JPMorgan Asia Growth & Income
Download the presentation and listen to the audio from our 'Growth at an unreasonable price' event from 21 September...
31 Aug 2022 Growth at an unreasonable price
Growth has taken a beating as inflation fears have soared, but the tide may be turning and we have six speakers at our next event ready to tell us why…
12 Aug 2022 Buying the discount
Trusts spent over £1bn on discount control in the first half of 2022…
07 Jul 2022 Finding opportunities amid mass uncertainty
Panic selling may provide opportunities to JAGI investors moving forward…
07 Jun 2022 Results analysis: JPMorgan Asia Growth & Income
JAGI remains a strong option for Asia investors, despite current headwinds…
15 Mar 2022 Fund Analysis
JAGI’s managers think Asia can deliver in the future after recent market falls…
25 Jan 2022 Focus on the signal, not the noise
Asian stocks may have had a tough 12 months but that doesn’t mean investors should shun the region…
08 Dec 2021 Results analysis: JPMorgan Asia Growth & Income
JAGI’s dividends are at a record high…
24 Nov 2021 Why you should look at companies – not countries – in Asia
Expert investors in the region explain why it pays to ignore the headlines and focus on fundamentals...
18 Oct 2021 Fund Analysis
JAGI’s balanced exposures could suit it for a core role in a portfolio…
02 Jul 2021 Where Asia leads the world
The historic perception of Asian companies lagging their Western peers is being swept away by global leaders in their fields. Here, we discuss the drivers of this shift Eastward and a company that exemplifies this trend…
24 May 2021 Results analysis: JPMorgan Asia Growth & Income
JAGI has outperformed its benchmark on a share price and NAV basis over the six months to 31 March 2021, despite a rocky market environment…
27 Apr 2021 Not the usual suspects
Investors are increasingly seeking a combination of growth and income but with dividends under pressure on the UK and Europe, it makes sense to consider your options further afield…
31 Mar 2021 East End boys and West End girls
Our analysts debate whether the US or Asian stock markets will deliver the best returns over the next decade…
25 Mar 2021 Fund Analysis
JAGI offers a high dividend from a growth-oriented portfolio…
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
07 Oct 2020 Fund Analysis
JAGI is the top-performing Asia income trust over five years…
24 Sep 2020 Bull in the Chinese market?
The Chinese stock market has been a notable winner thus far in 2020. Should investors stay the course, or take profits?
15 Apr 2020 Kepler Rated: JPMorgan Asia Growth & Income
JAGI offers a high yield and exposure to high growth companies in Asia…
11 Mar 2020 Fund Analysis
JAGI has generated significant outperformance in recent years and offers an attractive yield…
27 Feb 2020 Robbing Peter to pay Paul?
Two of our analysts discuss the growing trend for companies to pay an income out of capital…
21 Aug 2019 All change: a closer look at the AIC's revised sectors
We examine the AIC's revised sector classifications and discuss whether further improvements could be made...
03 Jul 2019 Push-me pull-you
Two contrasting influences are dominating the outlook for Asian markets - we analyse them and how Asia trusts are positioning their portfolios in response...
02 Jul 2019 Fund Analysis
With a team-based approach, JPMorgan Asian has outperformed in each calendar year since 2015...
05 Dec 2018 Surf's up
As rough markets drive share price volatility up, we use a proprietary statistical technique to highlight trusts which are on unusually wide discounts...
04 Dec 2018 Fund Analysis
Recent performance has been impressive, with the trust outperforming in rising and falling markets...
10 Oct 2018 Information overload
Our analysis shows the long term case for emerging markets remains largely unaffected by much of the negative newsflow surrounding the sector...
17 May 2018 Fund Analysis
A low cost trust with a yield of 4.1%, putting it on a competitive footing versus its income focused peers...
17 May 2018 Blast off!
As China A-Shares join the global indices, many investors remain structurally underexposed to this exciting region...
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