JPMorgan Global Growth & Income optimistic as beaten by benchmark
JPMorgan Global Growth & Income PLC on Friday said its portfolio is well-placed to build on its track record of delivering "superior" long-term returns to shareholders, as it underperformed against its benchmark.
The investment trust reported a net asset value total return of 16.7% for the financial year ended June 30, underperforming its MSCI All Countries World Index benchmark, which returned 27.7% in sterling terms.
NAV per share as at June 30 was 615.2p, up 12% from 548.1p a year prior.
The investment trust delivered a share price total return of 15.1%, while its five-year cumulative NAV return stands at 76.9%, ahead of the benchmark's 75.3%.
JGGI said its modest overweight to "so-called" artificial intelligence "hyperscalers" through its holdings in Amazon.com Inc and Microsoft Corp, detracted from portfolio returns in the year.
Meanwhile, its healthcare holdings made a "strong" contribution to relative returns, with the firm citing New Brunswick, New Jersey-based Johnson & Johnson. It also noted "strong" contributions from Osaka-based automation firm Keyence Corp and Stamford, Connecticut-based construction equipment distributor United Rentals Inc.
The company repurchased 34.5 million shares for £198.3 million during the year, adding 0.98p to NAV per share.
JGGI paid four interim dividends totalling 23.00p per share for financial 2026, up 0.9% compared to 22.80p in financial 2025, and plans to increase its annual dividend to 24.8p per share in financial 2027, marking its eleventh consecutive year of dividend increases.
Chair James Macpherson said: "The portfolio managers' ability to identify such opportunities is greatly enhanced by the deep resources of JPMorgan Asset Management's global research platform and proprietary analytical tools, which we believe provide the company with a durable competitive advantage.In our view, the portfolio is therefore well-placed to build on its track record of delivering superior long-term returns to shareholders."
Portfolio Managers Helge Skibeli, Sam Witherow and James Cook said: "We believe that we are currently at an especially compelling entry point within our alpha-generation cycle, as such opportunities have been accumulating continually across our investment universe over the course of the current episode of market exuberance. There are a wide range of compelling investment possibilities across the AI value chain, and, importantly, well beyond artificial intelligence, into the broader investment universe. We are therefore very excited about the company's potential to generate excess returns for shareholders as we continue to take advantage of the most compelling of these opportunities as they emerge."
JGGI shares were 0.2% higher at 614.50 pence each on Friday just before noon in London.
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