JAGI beats its benchmark with a 19.9% NAV return and a punchy 23.9% share price gain
JPMorgan Asia Growth & Income (JAGI) has posted a strong year to 30 September 2025. NAV total return came in at 19.9% versus 16.8% for the MSCI Asia Pacific Index in sterling, while the share price delivered 23.9% thanks to a narrowing discount. That keeps the long-term record intact – the trust has outperformed in seven of the last ten financial years.
Zooming out, the compounding is doing the heavy lifting: three-year NAV total return is 46.3% and ten-year is 202.5% against 154.3% for the benchmark. This is what you want from an active Asia mandate – steady relative wins stacked over time.
| Key metric | Result |
|---|---|
| NAV total return (FY2025) | +19.9% |
| Share price total return (FY2025) | +23.9% |
| Benchmark total return | +16.8% |
| Total dividend paid | 23.6p per share |
| Dividend policy | 1.5% of NAV per quarter – notional 6% per annum |
| Dividend yield at 30 Sep 2025 | 5.4% |
| Shares bought back | 10.8 million (13.7% of issued capital) |
| Impact of buybacks on returns | +1.5% to NAV total return, +5.8p to NAV per share |
| Discount to NAV at year end | 8.7% (target range 8% to 10%) |
| Net gearing | 5.2% |
| Year-end NAV | £323.8 million |
| NAV per share | 476.0p |
Enhanced dividend – now set at 6% of NAV per year
The board has increased JAGI’s enhanced dividend policy from 1% to 1.5% of NAV per quarter, effective March 2025. For the financial year, shareholders received 23.6p per share, which equated to a 5.4% yield on the 30 September 2025 share price. Remember this policy pays from a mix of income and capital, so payments flex with NAV.
Why it matters: a predictable, quarterly cash flow can help narrow the discount by broadening the appeal to income investors. The board explicitly wants that – and initial shareholder response has been positive, according to the statement.
Buybacks doing the heavy lifting on the discount
JAGI repurchased 10.8 million shares during the year, or 13.7% of its issued share capital, adding 5.8p to NAV per share. The discount closed the year at 8.7%, down from 11.2% last year and within the board’s 8% to 10% target in normal markets. Since year end, a further 709,104 shares have been bought back and the discount is currently 7.92%.
My take: the buyback programme is clearly supporting returns and the rating. The board does flag one trade-off – if buybacks remain heavy alongside the higher dividend, total assets can shrink. That risk is now marked as higher in the risk register. For now, the tighter discount is doing exactly what shareholders wanted.
How they outperformed – attribution and gearing in plain English
On attribution, stock selection added 2.3% and modest gearing via contracts for difference contributed 0.1%. Management fees and other expenses were a 0.8% drag, while buybacks added 1.5%. Currency had no impact. The additional 4.0% share price outperformance over NAV came from the discount narrowing.
The trust ran 5.2% net gearing at year end using CFDs rather than a loan facility. That is a light, flexible level of leverage which aligns with the managers’ constructive view on Asia without taking big balance sheet risk.
What worked in 2025 – China rebound and AI supply chain strength
Asia rallied, with the MSCI Asia Pacific Index up 16.8% in sterling. China’s policy pivot helped the MSCI China Index rise 27.0%. Singapore, Taiwan and Korea hit record or multi-year highs, while Indonesia struggled and India ended roughly flat despite 7.0% GDP growth.
At stock level, Hong Kong Exchanges and Clearing led contributions as trading volumes more than doubled and derivatives and ETP turnover surged. Delta Electronics also helped, driven by booming demand for AI server power supplies and liquid cooling – Delta’s Q2 2025 gross margin hit 35.5% and operating margin 15.1%.
Detractors included an underweight in Xiaomi after the shares more than doubled, and a holding in Indonesia’s Bank Central Asia as the market fretted about slower loan growth and higher credit costs.
Portfolio positioning – leaning into localisation and semiconductors
The team continues a bottom-up approach, adding Chinese names geared to localisation trends in tech. New buys included Accotest, the leader in domestic analogue IC testing, and AMEC, a high-end semiconductor equipment maker. They exited Reliance Industries on concerns over slower retail growth, and Haidilao after a disappointing first half and weaker demand dynamics.
Outlook for 2026 – five themes the managers are watching
- China growth – forecast around 4.5% with scope for more stimulus under the next Five-Year Plan, but structural reform remains the swing factor.
- Shareholder returns – rising dividends and buybacks across China, Korea and parts of ASEAN, with policy support such as Korea’s Value Up programme and DBS’s SGD3 billion buyback in Singapore.
- AI and technology – Asia’s role at the centre of the global AI supply chain remains a tailwind. Taiwan produces roughly the vast majority of advanced semiconductors and Korea leads in memory.
- Valuations – India and Taiwan are rich; China and Korea sit mid-range on 10-year metrics. The team sees scope for multiple expansion where governance reforms are improving returns on capital.
- Tariffs risk – US tariff measures are a headwind, with India noted as particularly exposed. Domestic policy responses are underway, but this remains a key macro risk.
Net-net, the managers describe the outlook as more positive than at the half year, with AI-driven earnings and improving corporate returns supporting markets, albeit with bouts of volatility that they hope to exploit.
Financials in brief
Total comprehensive income was £50.6 million, split between a £47.3 million capital return and £3.3 million revenue return. The management fee was £1.62 million and the company reiterates that its ongoing charges are among the lowest in the sector. NAV per share rose to 476.0p, with 68,031,302 shares in issue at year end.
What I’m watching next
- Dividend cover – the 6% of NAV policy is attractive, but it draws on capital in weak markets. Watch how payouts track NAV through the cycle.
- Discount discipline – buybacks have been effective. Keeping the rating in the 8% to 10% band should support future share price returns.
- China delivery – strong market gains now need follow-through in the real economy and continued governance improvements.
- Tariffs on India and broader trade friction – could reshape earnings trajectories and portfolio weights.
- Gearing – CFDs offer flexibility. The current 5.2% feels sensible, but watch for shifts if the outlook changes.
Shareholder diary and housekeeping
The AGM is scheduled for Wednesday, 25 February 2026 at 11.00 a.m. at 60 Victoria Embankment, London EC4Y 0JP, with remote access available. A continuation vote will also be put to shareholders at the AGM. For company materials and daily data, visit www.jpmasiagrowthandincome.co.uk. You can also opt in for updates here: JAGI sign-up.
Bottom line: this is a clean set of results. Outperformance was driven by stock picking, AI-linked winners and sensible buyback execution, all wrapped in a more generous dividend framework. The risks are real – tariffs, China’s reforms and Indonesia’s wobble – but the strategy looks well aligned with the region’s profit pools. If the board keeps the discount in check and the managers keep finding winners, JAGI retains solid appeal for investors seeking Asia growth with a dependable quarterly income stream.
