JPMorgan Global Convertibles Income Fund (JGCI)

Business description

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.

Balancing equity upside with downside protection

Review | Investment Companies | 01/08/2014

JPMorgan Global Convertibles Income Fund Limited (JGCI) targets income and capital growth through investment in a globally diversified portfolio of convertible securities. The fund’s yield of over 4% is above the MSCI World and FTSE All-Share equity indices by close to two percentage points and one point respectively. A key attraction of convertibles is that they are seen to offer downside protection in a market downturn and a degree of participation in a stronger equity market, with lower volatility. As a closed-ended fund, JGCI is able to invest in more illiquid convertibles generally offering a higher return; this is likely to have helped the fund achieve an NAV total return performance at a similar level to equity markets since it was launched in June 2013.

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Stock data

Market cap.£158.1m
Last close97.600p
High / Low (52 weeks)101.8p / 95.0p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamInvestment Companies
SectorInvestment Companies

Price performance

%1m3m12m
Actual2.3(1)1.7
Relative *(3.9)2.9(2.5)

* % Relative to local index

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