Results analysis from Kepler Trust Intelligence
RNS Number : 6391Z
JPMorgan Asia Growth & Income PLC
24 May 2021
 

JPMorgan Asia Growth & Income (JAGI)

24/05/21

 

Results analysis from Kepler Trust Intelligence

JPMorgan Asia Growth & Income (JAGI) generated impressive outperformance over the six months ending 31 March 2021. NAV total returns were 17.8% compared to a return from the MSCI AC Asia ex Japan benchmark of just 14.1%. The share price total return was 17.8% thanks to a widening premium rating.

The trust pays a quarterly dividend equal to 1% of the NAV at the close of the previous quarter, supplementing revenue returns from capital reserves where necessary. In respect of the quarters to 31 December 2020 and to 31 March 2021 dividends of 4.8 pence and 4.9 pence respectively were paid, totalling 9.7 pence and reflecting the strong rebound in the company's net assets. Two further dividends will be declared on the first business day after 30 June 2021 and 30 September 2021.

 

Kepler View

This was a strong six months for JPMorgan Asia Growth & Income (JAGI) despite the fact that growth was out of favour for the majority of the period. Despite the fact that value has outperformed growth in Asia since October, JAGI generated excess returns against the benchmark for the remainder of the reporting period and since. In our view, this illustrates the benefits of the diversification in JAGI's portfolio, as well as the tilt towards quality growth rather than speculative stocks, and the strong impact of good stock selection as well.

JAGI's portfolio is focussed on quality growth companies, meaning businesses which can sustainably compound their earnings faster than the market. While JAGI performed strongly in absolute terms in 2020 overall, it slightly underperformed the index, as returns in the region were highly concentrated in a handful of companies in the ecommerce and information technology (IT) fields. JAGI did well from its holdings in these sectors, but also retained significant positions in financials and consumer areas which the managers believe have strong secular growth potential, but which performed relatively poorly in locked down economies. The managers resisted the temptation to chase performance during the lockdowns, and this decision to remain diversified has put the trust in a strong position in 2021 and contributed to its outperformance this year and since the start of the coronavirus crash last March.

CLICK HERE TO READ THE FULL REPORT 

 

Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.

Important information

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.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NRAFLFSEEIISFIL