Growth better than Income for JPMorgan Elect- JPMorgan Elect has released its annual report for the year ending 31st August 2018. The Managed Growth portfolio delivered a total return on net asset value of 13.6% which outperformed the benchmark which returned 8.1% an out performance of the benchmark by 5.5%. For the year end 31st August 2018, the Board declared dividends of 13.1 pence compared to 11 pence for the year end 31st August 2017. The Managed Income portfolio delivered returns a total returns of 1.3% which is 3.3% underperformance compared to benchmark which was 4.6%. The dividends for the year was 4.5 pence per share which was up 7.1% (2017 was 4.2 pence). The Managed Cash share class returned 0.3% and dividends of 0.35 pence was paid for the year ended August 2018.
Shareholders took the opportunity during the year to spread shares amongst the different share classes. Managed Growth decreased by 850,829, Managed Income increased by 2,652,262 and Managed Cash increased by 3,940,747. Additionally 1,551,160 shares of Managed Cash were bought back.
The Managed Growth portfolio at years 44% was invested in JPMorgan-manged investment trust, 29% in JPMorgan-manged open-ended funds, 27% was managed by third party investment trusts. The US is the portfolios most favoured region do to the less volatility in the market due to a defensive nature. The US allocations was above the index and the European region was bellow the index.The UK still a large portion of the portfolio, but is bellow the index. The reason for this is that they are worried that the UK is vulnerable to any sudden change in the market.
The Managed Income portfolio holds positions in JPM European Investment Trust and JPM Global High Yield Bond Fund. Recently they established new positions in Cineworld after their recent acquisition of Regal Cinemas in the US. Ashtead a construction equipment rental service that has seen growth higher than expected. TBC Bank Group which has high dividends that can expected to grow within excess of 10%. International Consolidated Airlines which has excess cash flow that will allow them to invest or give back to shareholders. Somero a construction equipment manufacture which has a prospective yield of 5%.
The Managed Cash is invested amongst a bunch of the UK’s leading AAA-rated sterling liquidity funds. The funds tends to think that a weakening UK currency will help it get accustomed to a new world after Brexit.
JPE/JPEC/JPEI- Growth better than Income for JPMorgan Elect