(Alliance News) - JPMorgan Global Growth & Income PLC on Friday reported a rise in net assets over its most recent ended financial year but underperformed its benchmark.
At June 30, the trust's NAV per share stood at 332.40 pence each, 4.4% higher than the 318.40p seen at the same point a year prior.
JPMorgan Global Growth's net assets increased 7.1% over the twelve months, ending the year at GBP441.5 million compared to GBP410.8 million the year before. The trust reissued 3.8 million shares from treasury during the period, explaining the discrepancy.
The trust paid a 12.52p in dividends during the period, 3.0% higher than the 12.16p distributed the year before. Going forward, JPMorgan Global Growth intends to pay a 13.04p, in four equal distributions, for financial 2020.
JPMorgan Global Growth NAV total return in the period was 8.7%, underperforming its benchmark - the MSCI AC World Index - which gained 9.7% in the same period.
"Financial markets in the year to June 30 continued to be volatile, as a result of concerns about the escalating trade war between the US and China and fears about the effects of this on global growth. After recording falls in the first half of the financial year, the second half saw global markets recover strongly leading to positive performance for the full year," said Chair Nigel Wightman.
The trust's investment managers, Helge Skibeli, Rajesh Tanna and Tim Woodhouse, added: "Stock picking in the first half of the financial year was the primary reason for the underperformance over the past 12 months. Asos, Pioneer Natural Resources, and Ryanair were the most significant detractors from performance."
The managers noted Iberdrola, O'Reilly Automotive, and Microsoft as some of the "strongest performers" over the year.
"Having increased gearing at the start of the year given our belief that earnings growth would be resilient, we have recently reduced it to reflect increased risks and markets at all-time highs. The volatility in December last year afforded us some opportunities, and we believe that it is prudent to now bring exposure back down again having taken advantage of those opportunities. It is important to note however that gearing remains a positive feature of the company, and we are actively watching for the opportunity to take it higher once more," the managers added.
The trust ended the period with a gearing level of 3.8%, lowered from 4.9% at the start of the period. Since June 30, the managers have lowered the gearing to 0.1%.
Shares in JPMorgan Global Growth & Income were 0.3% lower in London on Friday at 339.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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