Timothy Woodhouse, one of the three portfolio managers of JPMorgan Global Growth & Income (JGGI) (alongside Helge Skibeli and Raj Tanna), provides an update on the market outlook and recent developments at the trust, which aims to provide investors with long-term growth as well as an annual income of c 4% of NAV. Key points in the interview include:
•Why the economic recovery will not be V-shaped.
•How ‘left-behind’ stocks in areas such as travel and house building are providing opportunities.
•Why economic exposure is more important than country of listing when seeking to benefit from emerging market growth.
•The importance of fundamental research as a driver of performance.
•How cyclical risk means the time is not yet right to gear up the portfolio.
•Why JGGI’s board and managers believe in the ‘multi-decade’ sustainability of the 4% yield policy.
JPMorgan Global Growth & Income aims to provide superior total returns and outperform the MSCI AC World Index (in sterling terms) over the long term by investing in companies based around the world, drawing on an investment process underpinned by fundamental research. JGGI makes quarterly distributions, set at the beginning of each financial year, with the intention of paying a dividend equal to at least 4% of NAV at the time of announcement.