JGGI’s half-year scorecard: resilient long-term, bumpy short-term
JPMorgan Global Growth & Income (JGGI) has posted an unaudited half-year NAV total return of 9.1% (debt at fair value) for the six months to 31 December 2025, behind the MSCI AC World Index at 13.3%. The share price total return was 7.1%.
That short-term lag sits against a strong long-term record. Over five years, JGGI’s NAV is up 90.6% versus 72.7% for the benchmark; over ten years, it’s 275.2% versus 232.0%. The board still calls the trust “one of the top performers in its peer group” across those horizons.
Key numbers retail investors should note
| Measure | Period/Point | Figure |
|---|---|---|
| NAV total return (debt at fair value) | 6 months to 31 Dec 2025 | +9.1% |
| Share price total return | 6 months to 31 Dec 2025 | +7.1% |
| Benchmark (MSCI ACWI in GBP) | 6 months to 31 Dec 2025 | +13.3% |
| NAV per share (debt at par) | 31 Dec 2025 | 586.5p |
| NAV per share (debt at fair value) | 31 Dec 2025 | 589.2p |
| Dividends paid in period | Two interims | 11.50p (5.75p each) |
| Intended total dividend | FY starting 1 Jul 2025 | 23.0p (0.9% increase) |
| Share buybacks | H1 FY26 | 19,086,840 shares, £109.7m, 3.0% discount, +0.6p to NAV |
| Further buybacks | Post 31 Dec 2025 | 12,899,322 shares, 3.1% discount, +0.3p to NAV |
| Share price discount to NAV | 31 Dec 2025 / current | 2.6% / 2.6% |
| Net cash (negative gearing) | 31 Dec 2025 | 0.5% (range: -1.3% to +1.8%) |
Quick jargon check: NAV is the portfolio’s net asset value per share. “Total return” includes income and capital. The “discount” is how far the share price sits below NAV. “Gearing” is borrowing to invest; net cash means they’re running slightly under-invested.
Why the trust lagged in the half: momentum trumped fundamentals
The managers say markets rewarded short-term momentum rather than long-term earnings power. Stock selection detracted by 3.8% and asset allocation by 0.5% in the period, according to the attribution table. Defensive quality names in consumer and healthcare stumbled on deeper-than-expected earnings downgrades.
Underweights to some of the largest technology index constituents hurt, particularly earlier in the period when big names rallied hard. Within healthcare, setbacks at Novo Nordisk and UnitedHealth also weighed.
Management’s take is frank: they followed valuation signals too closely and let the underweight to momentum become too big. The drawdown has been “sharp”, but they’ve seen similar phases before and expect fundamentals to reassert in time.
What JGGI changed: more balance, tighter risk controls
- Trimmed or reduced exposure to holdings with near-term execution issues, including Novo Nordisk and UnitedHealth.
- Managed mega-cap tech underweights more actively by adding Alphabet and Broadcom, while maintaining positions they continue to favour in the AI ecosystem such as NVIDIA and TSMC.
- Dialled back some higher-growth semiconductor exposure (sold Disco; took profits) and rotated towards analogue chip makers where valuations look more reasonable (e.g. Infineon).
- Increased interest rate-sensitive financials, adding Mitsubishi UFJ, American Express and Charles Schwab, on the view that a steeper yield curve and US deregulation could support the sector.
- Kept select industrial cyclicals with stock-specific drivers, such as Volvo and Howmet Aerospace.
- Modestly added to defensive consumer names, initiating McDonald’s and Coca-Cola; retained Johnson & Johnson as a core healthcare holding.
Crucially, they say this is not a change in process. The portfolio remains around 23% overweight in Premium and Quality companies and ~31% overweight names with the highest expected returns. But exposure to near-term momentum and earnings revisions is now neutral, which should make the ride less bumpy if the momentum trade persists a while longer.
Dividends: clarity now, flexibility preserved
JGGI paid two interim dividends of 5.75p in the half (total 11.50p). The board intends to pay 23.0p per share for the financial year starting 1 July 2025 – a 0.9% uplift on last year’s 22.80p. A third interim dividend of 5.75p has been declared for payment on 9 April 2026 (record date 6 March; ex-dividend 5 March).
Important nuance: the trust does not run a “progressive” dividend policy in the strict sense, but since adopting its enhanced policy in 2016, the dividend has risen by 613%. Management can part-fund payouts from substantial distributable reserves, which stood at £2.3 billion at 31 December 2025. That lets them invest beyond high-yield stocks while still delivering regular income.
Buybacks and discount control: active and accretive
JGGI’s long-standing policy targets an average discount of around 5% or less (debt at fair value). The team repurchased 19,086,840 shares into treasury during the half at a 3.0% average discount, adding 0.6p to NAV per share. Since period end they’ve bought back a further 12,899,322 shares at a 3.1% discount, adding another 0.3p. The discount sat at 2.6% at the half-year and is 2.6% currently, according to the board.
Why it matters: buying in shares below NAV is accretive for continuing holders and helps keep the share price anchored to underlying value. With 20,769,292 shares in treasury at period-end, the board is clearly using this tool actively.
Gearing and currency: cautious positioning, stock-picking focus
Gearing remained low, ranging between net cash of 1.3% and modest gearing of 1.8%. The trust ended the period with net cash of 0.5%, reflecting a cautious near-term stance.
JGGI continues its passive currency hedging strategy begun in 2009, designed to align currency exposure with the benchmark so that stock selection is the main driver of relative returns. Note that this can make currency effects look different versus peers that hedge less or tactically.
The long view: record still stacks up
Despite a tough half, the long-term data is solid: five-year NAV total return of 90.6% against 72.7% for the benchmark, and ten-year of 275.2% against 232.0%. The share price total return over ten years is even higher at 288.0%.
Financially, the period delivered a total net return after tax of £286.1 million, or 49.93p per share, with gains on investments of £271.0 million. NAV per share closed at 586.5p (debt at par) or 589.2p (debt at fair value).
My take: what it means for shareholders now
Reasons to be positive
- Long-term outperformance remains intact across five and ten years.
- Dividend visibility is good – 23.0p targeted this year – and backed by £2.3 billion of reserves.
- Active discount control through buybacks is adding value and keeping the discount tight at 2.6%.
- Portfolio tweaks address the main source of recent underperformance (momentum underweights) without abandoning the quality-and-valuation discipline that has worked over time.
Watch items and risks
- Underperformance was primarily stock selection in a momentum-led market. If momentum persists longer than expected, relative returns could remain choppy.
- Healthcare disappointments show that even high-quality franchises can wobble; the team has reduced risk but execution will be key.
- Low gearing means less firepower if markets keep rising fast – a conscious choice, but it can cap upside in strong rallies.
Final word
This update reads like a mid-course correction rather than a strategy rewrite. The board and managers acknowledge what went wrong, have adjusted exposures, and continue to lean on J.P. Morgan’s research muscle. For investors seeking global equity exposure with a clear income stream, a tight discount policy and a long-term record that still shines, JGGI remains a credible option – with the usual caveat that patience may be needed until fundamentals retake centre stage.
