JPMorgan China Growth & Income (JCGI)

JPMorgan China Growth & Income (JCGI) offers investors exposure to high-quality-growth companies across Greater China, including mainland China, Hong Kong and Taiwan, with its investment team focussed on identifying businesses capable of delivering sustainable, above-market earnings growth over the long term. The investment approach remains firmly rooted in bottom-up fundamental research, with an emphasis on profitability, durability and long-term relevance, rather than short-term macro or political forecasting, alongside a disciplined approach to valuation.

Portfolio activity over the past year reflects this focus. The managers have added selectively to high-quality companies where valuations appeared to understate long-term growth potential, particularly across technology and healthcare, including Wus Printed Circuit Kunshan and GenFleet Therapeutics. Despite these changes, the Portfolio retains its long-standing quality-growth bias and remains underweight more cyclical areas with weaker structural growth prospects like energy.

Performance has improved meaningfully over the past 12 months as Chinese equities staged a recovery. JCGI delivered a NAV total return of 34.5%, ahead of the MSCI China Index’s 29.9% return. This follows a challenging five-year period for both the trust and the wider China market, underscoring the volatility inherent in the region but also the potential upside when sentiment and fundamentals begin to realign.

JCGI’s Dividend policy remains unchanged, with an annual distribution targeted at 4% of NAV. For the year to September 2025, this equated to 10.92p per share. Looking ahead, the board has already announced a higher dividend of 13.56p for the 2026 financial year, an increase of around 24%, reflecting the recovery in NAV used to set the distribution.

At the time of writing, JCGI trades at a 10.0% Discount to NAV, modestly wider than both its own five-year and unweighted peer group average.