Jpmorgan Gl (LON:JGCI) is managed by the convertible bonds team at JP Morgan Asset Management (JPMAM), now led by Natalia Bucci following the departure of Antony Vallée in February 2018. Bucci and other members of the team have worked together for many years, and stress the continuity of a process that has been developed collaboratively over time, based on in-depth fundamental security analysis. The portfolio management team has been bolstered with the addition of Paul Levene, who joined JPMAM in 2015. JGCI continues to achieve its target yield of 4.5% and NAV progression has been broadly steady, with the share price having risen by a greater margin over 12 months, following the introduction of a discount management policy in May 2017. The team remains positive on the outlook for the global economy, which supports exposure to more equity-sensitive areas of the convertible bond market.
Investment strategy: More flexible approach
JGCI invests mainly within the bond-like and balanced areas of the convertible bond market, with an increased focus on the balanced segment since the team was given the flexibility to take a more total return approach to meeting the fund’s 4.5% dividend yield target. Security selection is bottom-up, supported by JPMAM’s team of convertible bond analysts, but the process also takes account of top-down factors such as industry fundamentals, the global economy and interest rates. The c 90-name portfolio is diversified by geography, industry, issuer size and credit quality.
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