JPMorgan Asia Growth & Income

Last updated 11 March 2020

JAGI has generated significant outperformance in recent years and offers an attractive yield…

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.

JPMorgan Asia Growth & Income

JPMorgan Asia Growth & Income (JAGI) uses detailed fundamental research done by a team of over 40 investment professionals to identify superior growth companies in the Asia Pacific region. The team aim to take a long-term view, and look through the volatility and unpredictability often found in the economies, markets and politics of Asian countries.

As such, the process depends less on one or a few people making the right calls again and again, but more on a wide, experienced team implementing a sound strategy consistently. The trust has performed extremely well in recent years with minimal levels of gearing. As we discuss in the Performance section, JAGI is the second-best performer of all Asia Pacific trusts (growth or income) over five years, almost entirely down to strong stock selection. It has outperformed a passive investment in its benchmark index in each of the past seven years.

JPMorgan Asia Growth & Income, renamed from JPMorgan Asian in February 2020, pays 1% of NAV each quarter as a dividend – out of capital if necessary. Since implementing this policy in 2017, the discount has generally been in single digits, having been in double digits previously – it is now 1.3%.

The portfolio continues to be managed – as it has always been – for capital growth, despite the new dividend policy. JAGI offers more exposure to ‘growthier’ sectors, such as information technology and consumer discretionary, than the typical income trust. This has helped JAGI to outperform the other AIC Asia Pacific Income trusts on a total-return basis while offering a comparable yield.

Thomas McMahon
Thomas is a senior investment trust analyst and joined Kepler in April 2018. Previously he was senior analyst at FE Invest, where he was responsible for fund selection for a range of model portfolios. He covered all asset classes over time, but has particular experience with emerging markets and fixed income as well as UK smaller companies funds. He has a degree in Philosophy from Warwick University and is a CFA charterholder.

Fund History

Related Research

Key facts

Investment objective

To provide capital growth and income from a diversified portfolio of around 50 to 80 companies quoted on the Asian stock markets (excluding Japan)

As at:

06/03/2020

Trust Name

JPMorgan Asia Growth & Income

Ticker

JAGI

Management Company

JPMorgan Asset Management Inc

Manager Names

Ayaz Ebrahim; Richard Titherington; Robert Lloyd;

Association of Investment Companies (AIC) Sector

Asia Pacific Income

12-Month Yield

4.3%

Dividend Distribution Frequency

Quarterly

Latest Market Capitalisation

£342,456,635

Latest Net Gearing (Cum Fair)

0%

Latest Ongoing Charge Ex Perf Fee

0.74%

Turnover Ratio

42.3%

Shares Outstanding

94,081,493

(Discount)/Premium (Cum Fair)

1.3%

Daily Closing Price

364p

Source: Morningstar

Disclaimer

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

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