JPMorgan Global Convertibles Income Fund

LN: JGCI

Market Cap£104m

Last Close 90.2p

JGCI seeks to generate dividend income combined with the potential for long-term capital growth by investing in a globally diversified portfolio of convertible securities and other suitable instruments exhibiting convertible or exchangeable characteristics. The company targets an initial gross dividend yield of 4.5% reflecting the opportunity the manager sees to generate income, particularly in the high-yield sub-sector. The dedicated convertibles team at JPMorgan Asset Management will follow a well-developed process that combines equity and credit selection techniques. The MSCI World index is the reference index. Currency exposures for capital and income will be hedged.

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Investment summary

JPMorgan Global Convertibles Income Fund (JGCI) is the UK’s only listed closed-end fund focused on the convertible bond market. Convertibles usually pay a coupon (like an ordinary bond) but also have an embedded option to buy the underlying equity, meaning they benefit from rising share prices, as well as downside protection from the par value of the bond being repaid at maturity. While JGCI’s NAV total return has been flat to negative over the past year and its share price has drifted lower, its managers see potential for convertible bonds to perform well in the current economic and market environment, given they tend to outperform traditional fixed income as interest rates rise. A continuation vote will take place at the 2018 AGM in November; the board has recommended that investors vote in favour, given the outlook for the asset class. JGCI currently yields c 5% and has an active discount control programme.

Content on JPMorgan Global Convertibles Income Fund

JPMorgan Global Convertibles Income Fund (JGCI); NAV total return of -5.69%

Investment companies | Edison Sparks | 22 March 2019

JPMorgan Global Convertibles Income Fund – Positive outlook for niche asset class

Investment companies | research Review | 5 November 2018

JPMorgan Global Convertibles Income Fund – Continuity of approach under new team head

Investment companies | research Inv trust standard (8 pages) | 6 June 2018

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Share price graph

Price performance

%

1m

3m

12m

Actual	1.6	2.5	(0.9)
Relative*	0.4	3.9	1.2
52-week high/low		92.0p/84.8p

*% relative to local index

Key management
Antony Vallee	Fund manager

Company website