JPMorgan Global Convertibles has published results for the year ended 30 June 2015. The total return on the Company’s net assets was -1.0% and the return to shareholders was -4.8%. Three quarterly dividends totalling 3.375 pence per share were declared and paid during the year. Whilst income after expenses fell by 6.2% in the year, the Board chose to meet its targeted annual dividend of 4.5 pence per share, declaring a fourth and final quarterly dividend of 1.125 pence per share on 2nd October 2015. The Board will continue to target an annual dividend of 4.5 pence per share.
The second half of 2014 was a challenging period for the fund, as weak equity returns, widening credit spreads, and a negative impact from convertible valuations weighed on performance against a backdrop of oil price weakness. Most of the negative performance over this period resulted from the effects of the energy sell-off on broader risk sentiment, rather than their direct allocation. However, the largest individual detractors from returns were positions in the energy and basic materials sectors.
JGCI : Energy exposure weighs on JPMorgan Global Convertibles