JPMorgan Global Growth & Income Posts Mixed 2025 Results with Strong Long-Term Gains

JGGI’s 2025 results: short-term wobble, long-term muscle

JPMorgan Global Growth & Income (JGGI) has posted mixed results for the year to 30 June 2025. In a volatile year, the trust’s NAV total return was +1.0% (with debt at fair value), lagging the MSCI All Countries World Index at +7.2%. The share price fell -1.6%.

Step back, though, and the long-term record remains punchy: five-year cumulative NAV total return of +102.8% (vs +71.0% for the benchmark) and +245.7% over ten years (vs +197.5%). Scale also stepped up thanks to May’s merger with Henderson International Income Trust (HINT), taking net assets to £3.2 billion and ongoing charges to 0.44%.

Key numbers investors should know

NAV total return (debt at fair value)	+1.0%
Benchmark (MSCI ACWI, £, TR)	+7.2%
Share price total return	-1.6%
Five-year cumulative NAV TR	+102.8% (Benchmark +71.0%)
Ten-year cumulative NAV TR	+245.7% (Benchmark +197.5%)
Net assets post-merger	£3.2 billion
Ongoing charges	0.44% (excluding management fee waivers)
Dividend for FY2025	22.8p per share
Dividend intention for FY starting 1 July 2025	23.0p per share (5.75p quarterly), +0.9%
NAV per share (debt at par / fair value)	548.1p / 550.8p
Discount to NAV	0.69% at year-end; 2.40% at 30 Sept 2025
Gearing	Range: net cash 1.9% to gearing 2.1%; ended net cash 0.6%

Why performance lagged in 2025

The drag came from stock selection. In attribution terms, stock picking cost -6.6% while asset allocation added +0.7%. A small currency drag (-0.2%) and a modest gearing/cash tailwind (+0.3%) netted to an Investment Manager contribution of -5.8%. After fees (-0.4%) and minor structural effects, NAV TR landed at +1.0%.

Put simply, quality growth shares that JGGI typically favours fell out of fashion as momentum and cyclical stocks led following the US election and shifting trade policy. A short, sharp sell-off in April around tariff worries compounded it. Some semiconductor names also faced softer-than-expected chip demand, and a handful of holdings had company-specific knocks.

Stock and sector colour

• Defensives helped: Deutsche Boerse returned almost 40%, with Hong Kong Exchanges and Munich Re also contributing.
• Big Tech was mixed but overall supportive: Meta was a top contributor; being underweight Alphabet helped.
• Semis were volatile: TSMC (+17%) and NVIDIA (+18%) did well, but the trust exited SK Hynix after a choppy spell in memory.
• Healthcare hurt: Novo Nordisk detracted after a setback for Cagri Sema and rising competition; UnitedHealth Group also struggled and was trimmed.
• Luxury weighed: an overweight LVMH faced China demand softness, tariff concerns and brand-related controversy; position was reduced.

Dividend policy: high, transparent and partly from reserves

JGGI paid 22.8p per share for the year. The Board intends to pay 23.0p for the year from 1 July 2025 (5.75p per quarter), a 0.9% uplift. The policy targets, absent surprises, at least 4% of prior year-end NAV as dividends, with flexibility to adjust to stay broadly in line with the market.

The trust is clear that dividends are not “progressive” every year, but since 2016 the total dividend has risen 613% – equivalent to almost 24.5% per annum. Importantly, distributions can be topped up from capital reserves when income falls short. Distributable reserves stood at £2.19 billion at 30 June 2025.

Jargon watch: paying from reserves means capital gains (or reserves built from past profits) can fund part of the payout, giving a smoother income stream.

HINT merger: bigger, cheaper, and ready for more

The HINT combination completed in May. JGGI issued 64,261,713 shares to HINT holders, taking total net assets to £3.2 billion and ongoing charges to 0.44% (excluding fee waivers). Scale matters: lower costs, better liquidity, and stronger profile in the sector – and the Board explicitly sees JGGI as an attractive partner for future consolidation.

Issuance and buybacks were active. Across the year, 101,551,713 new shares were issued (including HINT), while 2,765,857 were bought back into treasury at a 1.7% weighted-average discount, adding 0.03p to NAV. Since year end, a further 3,775,701 shares were repurchased at a 2.0% discount, adding 0.05p per share to NAV.

Discount control, placing programme and AGM

Despite periods of premium, the shares moved to a modest discount in the second half. The discount was 0.69% at year-end and 2.40% on 30 September 2025. The Board continues to target an average discount of around 5% or less through buybacks and issuance.

The 12-month placing programme launched in October 2024 is being brought to an end as the trust has sufficient general issuance authority up to the AGM on 12 November 2025. Shareholders will be asked to renew issuance and buyback authorities at that meeting in London at 3.00 p.m.

Positioning: balancing cyclical and defensive, with AI still a core theme

The managers remain cautious near term, but see attractive stock-picking opportunities across their 2,500-stock universe. They’ve rebalanced towards higher-quality cyclicals, adding 5.5% and closing a prior 5% underweight (as at 31 December 2024), with top-ups to names like Eaton and Trane Technologies. Defensives have been reduced, moving from a 7% overweight to a 2% underweight.

Structural growth remains in focus, notably AI and cloud. The trust is exposed via holdings such as TSMC and Meta. That said, the team is candid about volatility and is running modest net cash (0.6%) rather than leveraging up aggressively.

Gearing, debt and currency hedging in plain English

• Gearing: The trust used very little through the year – between net cash of 1.9% and gearing of 2.1%. Modest, opportunistic use after April’s sell-off.
• Debt: Assumed €30 million of senior secured notes via HINT; the old 4.5% Perpetual Debenture is now fully redeemed. NAV is quoted both at debt “par” (548.1p) and at debt “fair value” (550.8p). Fair value reflects market pricing of debt.
• Currency hedging: JGGI passively hedges FX to align the portfolio’s currency mix with the benchmark. This reduces currency as a performance driver versus many peers that leave FX unhedged.

Risks and governance: what’s on the dashboard

• Principal risks remain high but stable: market/geopolitical and cyber security feature prominently.
• Emerging risks: the rise of active ETFs and potential changes to the UK tax and savings regime.
• Manager changes: Tim Woodhouse stepped down on 30 September 2025; the team continues with Helge Skibeli and James Cook, and welcomes Sam Witherow from 1 October 2025.

Josh’s take: what this means and why it matters

Short-term underperformance is frustrating, but the reasons are understandable: momentum-fuelled markets favoured lower-quality cyclicals at the exact moment JGGI leaned into quality growth and defensives. The managers have responded by rebalancing towards cyclicals without abandoning long-term growth themes.

The long-run record still does the heavy lifting. Over five and ten years, JGGI remains one of the strongest performers in its peer group. Add in a 0.44% ongoing charges figure and much larger scale post-HINT, and the platform looks stronger, not weaker.

The dividend remains a clear selling point. A 23.0p intention for the new year, with ample reserves backing, gives income visibility. Just remember it’s not a guaranteed “progressive” policy – it’s a target based on NAV, topped up from reserves when needed.

Finally, the modest discount could be an opportunity if performance narrows back towards the benchmark and buybacks keep doing their job. The caution on gearing suggests the team won’t swing the bat until conditions look clearer – sensible, if a touch unexciting. For investors, this is still a high-conviction, stock-picking trust with a strong long-term spine and a healthy income stream.

Useful links and dates

• Company website: www.jpmglobalgrowthandincome.co.uk
• Sign up for updates: tinyurl.com/JGGI-Sign-Up
• AGM: 3.00 p.m., Wednesday 12 November 2025, 60 Victoria Embankment, London EC4Y 0JP