JPM Managed Growth vs Managed Income?
Posted: January 25th, 2017, 11:51 am
Another missive from AJ Bell, telling me I need to respond to a 'corporate event' relating to my JP Morgan Managed Income shares:
"Based upon the Respective Assets Value shareholders can convert part or all of their holding into one or more of the other share classes (Managed Growth Shares and/or Managed Cash Shares)...."
According to JPMorgan's literature:
Managed Growth - a fund of funds portfolio focused on capital growth in UK and global equities
Managed Income - a directly invested UK equity portfolio focused on dividend income growth
MORGENSTERN says :"With net assets of about GBP272.2 million, JPMorgan Elect has three share classes, each with distinct investment policies, objectives and underlying investment portfolios. Conversion between those share classes is allowed on a quarterly basis. Its Managed Growth share class aims for long-term capital growth from investments in investment trusts and open-ended funds managed in the main by JPMorgan Asset Management. The Managed Income class seeks to grow income with potential for long-term capital growth by investing in equities, investment companies and fixed income securities, while the Managed Cash class looks to preserve capital with a yield based on short term interest rates by investing in liquidity funds and short dated AAA-rated UK or G7 government securities hedged into sterling. "There is a high degree of overlap between the underlying holdings of the company and those of JPMorgan Elect's Managed Income share class, and the company's shareholders will have the option to benefit from continuity of management as the company's portfolio managers are also responsible for managing JPMorgan Elect's portfolio," JPMorgan Income & Growth said in a statement."
I'm a bit lost. As I understand it, NAV doesn't actually matter, and the 2 funds have similar discounts (1.46% vs 2.19%). According to Trustnet, the Income Fund performs somewhat better than the Growth Fund (11.9 vs 15.7% over the past year). Both seem are focused on long-term capital growth, and I'm not sure whether investments via investment trusts and open-ended funds (Growth Fund) are 'better' than investing directly in equities, investment companies and fixed income securities (Income Fund).
Help please...
"Based upon the Respective Assets Value shareholders can convert part or all of their holding into one or more of the other share classes (Managed Growth Shares and/or Managed Cash Shares)...."
According to JPMorgan's literature:
Managed Growth - a fund of funds portfolio focused on capital growth in UK and global equities
Managed Income - a directly invested UK equity portfolio focused on dividend income growth
MORGENSTERN says :"With net assets of about GBP272.2 million, JPMorgan Elect has three share classes, each with distinct investment policies, objectives and underlying investment portfolios. Conversion between those share classes is allowed on a quarterly basis. Its Managed Growth share class aims for long-term capital growth from investments in investment trusts and open-ended funds managed in the main by JPMorgan Asset Management. The Managed Income class seeks to grow income with potential for long-term capital growth by investing in equities, investment companies and fixed income securities, while the Managed Cash class looks to preserve capital with a yield based on short term interest rates by investing in liquidity funds and short dated AAA-rated UK or G7 government securities hedged into sterling. "There is a high degree of overlap between the underlying holdings of the company and those of JPMorgan Elect's Managed Income share class, and the company's shareholders will have the option to benefit from continuity of management as the company's portfolio managers are also responsible for managing JPMorgan Elect's portfolio," JPMorgan Income & Growth said in a statement."
I'm a bit lost. As I understand it, NAV doesn't actually matter, and the 2 funds have similar discounts (1.46% vs 2.19%). According to Trustnet, the Income Fund performs somewhat better than the Growth Fund (11.9 vs 15.7% over the past year). Both seem are focused on long-term capital growth, and I'm not sure whether investments via investment trusts and open-ended funds (Growth Fund) are 'better' than investing directly in equities, investment companies and fixed income securities (Income Fund).
Help please...