JPMorgan American (JAM)
28/03/2024
Results analysis from Kepler Trust
Intelligence
JPMorgan American (JAM)
produced a net asset value total return of 24.7% in the year to
31/12/2023 compared to the trust's benchmark, the S&P 500,
which produced an 18.9% total return. Since JAM implemented its
current investment strategy on 01/06/2019 to the end of February,
it has generated a NAV total return of 116.3% compared with a
benchmark return of 97.3%, an annualised outperformance of 2.2
percentage points.
This performance has, in our
view, cemented JAM's position as a core holding, and even as the
investment trust sector is on average experiencing very wide
discounts, driven by sentiment and technical issues such as cost
disclosures and the consolidation of the wealth management
industry, a significant shareholder of investment trusts, JAM has
retained a narrow discount or premium. JAM in our view provides a
template for what a successful equity investment trust looks like:
an investment proposition that is clearly understandable, adds
value through a well-thought-out active strategy as well as through
gearing, and which is able to step in and buy shares back when
needed, without any particular concerns about what that might do to
the portfolio mix, or to gearing. With M&A picking up speed in
the investment trust sector, JAM is a good example for trusts
wondering what the benefits of scale are w, not least because JAM's
significant outperformance came with an ongoing charges figure of
0.38%.
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