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

Published on 22-03-2019 08:44:02
Author Sparks Team

For the six months ended 31 December 2018, the JPMorgan Global Convertibles Income Fund reported total return on net assets stood at -5.7% vs. -3.4% from its benchmark, the Bloomberg Barclays Global Convertibles Credit Rate Sensitive Index. The total return to shareholders was -6.8%, as the discount of the share price to NAV widened over the six-month period from 3.6% to 6.0%.

The company reported that its relative underperformance was largely due to the portfolio’s exposure to the energy, communications and technology sectors. Since the period end, the company’s relative performance has improved; for the two months to 28 February, it is approximately 1.5% ahead of the reference index.

For this period NAV/Sh was 90.9p. Also, a first quarterly dividend of 1.125p/Sh was declared and paid. A second quarterly dividend of 1.125 p/Sh was declared on 20 February 2019, to be paid on 2 April 2019 to shareholders on the register on 1 March 2019. Over the course of 2018 as a whole, the level of gearing was brought down and the facility size has been increased to $15m (10% of AUM) as of February 2019, remaining within the company’s gearing limit of 20%.

At its AGM (in November 2018) shareholders passed a resolution proposing that the company continues its business as a closed-ended collective investment scheme for a further three years. However, the Board recognises that there has been a significant level of buying back of the company’s shares during the last 18 months, and thus will be putting a further continuation vote to shareholders at the AGM to be held in December 2019.

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