JPMorgan Global Growth & Income Ord
Why is this fund on our radar?
JPMorgan Global Growth & Income (JGGI) offers a differentiated global equity income strategy. As an investment trust, it has the flexibility to invest in companies that may not currently pay high dividends but have strong potential for share price growth, without compromising its ability to pay dividends. As such, JGGI can provide income investors with access to fast-growing sectors, such as technology, which typically pay low or no dividends. At the same time, we believe JGGI can also serve as a core holding for investors seeking total returns, that is a combination of dividend income and long-term share price growth. JGGI has delivered strong returns over the past five years, outperforming global stock market indices and many traditional equity income funds in various market conditions. This consistent performance is why it is included in our selection.
Skip to Our VerdictPerformance
JGGI has a strong performance track record, having comfortably outperformed standard global equity indices over the past five years (to the end of October 2025). What sets JGGI apart from many equity income strategies is its ability, as an investment trust, to pay dividends from both the income generated by its underlying holdings and from capital. This flexibility allows JGGI to invest in stocks with low or no dividend yields but stronger long-term potential for share price appreciation, without compromising its focus on providing income.
Because of this, JGGI is likely to behave differently from traditional equity income strategies, which usually concentrate on high-yielding stocks. For example, traditional equity income strategies have generally underperformed global equity indices during strong bull markets - for instance, in 2020 when investors favoured companies embedded in the digital economy, or in 2023 and 2024 when stocks related to artificial intelligence surged. In contrast, JGGI outperformed during these periods thanks to its ability to invest in such growth sectors.
However, we expect JGGI to lag traditional equity income strategies during times when investors prefer lower-volatility, pure dividend-paying stocks. This was the case in 2022, when central banks raised interest rates. Such environments often negatively impact stocks of companies with strong growth prospects but limited near-term dividend payments. Even so, JGGI still outperformed standard global equity indices during that period, thanks to the managers’ focus on high-quality businesses and their avoidance of more speculative stocks, which tend to be more affected by changes in the economic environment. The chart below shows the calendar-year returns of JGGI since 2020 versus an ETF tracking the MSCI World Index. Unlike JGGI’s benchmark, the MSCI ACWI Index, the MSCI World Index only contains companies from developed markets.
calendar-year returns
Past performance is not a reliable indicator of future results
It is also worth noting that JGGI relies on its capital reserves to fund its dividend, aiming to pay at least 4% of the trust’s net asset value (NAV) as at the end of its preceding financial year. This means that the amount distributed to shareholders will depend on the trust’s NAV performance. As such, the dividend will be higher after financial years when JGGI’s investments have increased in value, and reciprocally, lower when they have fallen in value. In addition, JGGI has historically exhibited higher volatility - that is quick and significant jumps in the value of its investments, both upward and downward - than global equity indices as well as many other global equity income strategies. This means that a longer investment time horizon may be required.
Portfolio
JGGI’s dividend policy affords it the flexibility to invest in stocks with low or no dividend yields. For example, JGGI has historically held significant positions in US technology companies, which have the potential to deliver rapid share price growth but usually pay little or no dividend. The chart below shows JGGI’s current sector allocations and how they compare to the MSCI ACWI High Dividend Yield Index, which we use as a proxy for a traditional global equity income strategy.
sector allocation
The managers build the portfolio on a bottom-up basis, meaning they focus on the specific characteristics of individual companies rather than broader market trends or economic conditions. They aim to hold between 50 and 90 stocks and seek companies capable of delivering sustainable and rapid earnings growth, while trading at valuations in line with the overall market. The managers also use the JPMorgan’s Strategic Classification framework, primarily targeting companies categorised as ‘premium’ and ‘quality’ - the two highest-ranking categories. These businesses typically operate in industries with high barriers to entry and have earnings expected to remain resilient throughout the economic cycle. However, the managers may also consider stocks classified as ‘standard’ or ‘challenged’ if their valuations appear to underestimate growth potential. This approach provides flexibility when ‘premium’ and ‘quality’ stocks become expensive. Position sizes are determined based on conviction, valuation, and insights.
Our Verdict
In our view, JGGI offers a differentiated equity income strategy that takes full advantage of the benefits provided by the investment trust structure. This flexibility allows it to invest in companies with strong potential for share price appreciation in industries benefiting from structural growth themes, even if these companies pay low or no dividends. Such stocks are typically inaccessible to traditional equity income strategies, as open-ended funds and ETFs lack the flexibility in how dividends can be funded.
Beyond its structure, JGGI has a strong track record, having outperformed standard global equity indices over the past five years. This outperformance reflects a higher allocation to growth-oriented areas of the market that have driven returns over much of this period, although stock selection has consistently contributed positively regardless of the prevalent stylistic biases driving markets. As a result, we believe JGGI could serve as a core holding for a range of investors or as a growth-focused component within an income portfolio, providing dividend-seekers with access to low-yielding stocks that offer strong share price appreciation potential.
That said, it is important to note that the dividends paid by JGGI may vary significantly from year to year, as they depend on the trust’s NAV performance. In addition, like all investment trusts, JGGI can trade at a discount or premium, meaning its share price may not always exactly reflect the value of its underlying investments. Finally, JGGI has the option to use gearing, or debt, which can amplify both gains and losses, although historically the trust has used this modestly.
Key Risks
- Dividend may experience volatility in tandem with NAV
- More volatile than a traditional equity income strategy
- Investment trusts can trade at a discount or premium to their NAV, which may be uncomfortable for some investors
