The title
Going forward, we are excited for what is in store for the trust. While mass vaccinations will take time, and there is the possibility of complications, the return to some level of normality should result in a global economic recovery and significant uptick in corporate earnings. JGGI stands to benefit from this, with the managers shifting the portfolio away from stocks that have done particularly well in the pandemic towards cyclical companies that should benefit from an economic rebound. As such, industrials and consumer cyclicals continue to be the sectors where the managers have the largest overweight positions relative to their benchmark, while they have added exposure to financials.
JGGI’s NAV growth is directly tied to its income, which is paid out in part from capital with a target pay-out of 4% of NAV as at the previous financial year-end. This allows JGGI to offer a different risk/return profile to that of its peers, freed from the more typical high-income names. Currently JGGI’s portfolio has more than 60% of its holdings in the US, as such it is one of the few routes to an income from this comparatively low-yielding region thanks to JGGI’s dividend policy. This makes it an attractive means of diversification for an income portfolio while still providing a current yield of 3.3%.
The managers will continue to focus on their strengths in the year ahead, which involves identifying structural trends, thinking long term, and finding great companies in which to invest. In their report, the managers stated that “Equities remain a great place to be, and we have never been more convinced of the merits of investing globally”. The trust currently (04/03/21) trades at a premium of 2.5%, which could make some investors wary, but given the potential it has to benefit from a global recovery, its strong track record, and the diversification benefits it offers to income investors, we see
JGGI’s NAV growth is directly tied to its income, which is paid out in part from capital with a target pay-out of 4% of NAV as at the previous financial year-end. This allows JGGI to offer a different risk/return profile to that of its peers, freed from the more typical high-income names. Currently JGGI’s portfolio has more than 60% of its holdings in the US, as such it is one of the few routes to an income from this comparatively low-yielding region thanks to JGGI’s dividend policy. This makes it an attractive means of diversification for an income portfolio while still providing a current yield of 3.3%.
The managers will continue to focus on their strengths in the year ahead, which involves identifying structural trends, thinking long term, and finding great companies in which to invest. In their report, the managers stated that “Equities remain a great place to be, and we have never been more convinced of the merits of investing globally”. The trust currently (04/03/21) trades at a premium of 2.5%, which could make some investors wary, but given the potential it has to benefit from a global recovery, its strong track record, and the diversification benefits it offers to income investors, we see
