The JPM Global Equity Income Fund will provide investors with stability in times of uncertainty through exposure to the world’s largest brands.
The tragic Russian invasion of Ukraine has sent waves through financial markets and will likely continue to cause uncertainty for months to come.
In such a period, investors may seek out those companies with reliable cashflows generated from resilient business models.
These characteristics are typically associated to the world’s largest companies – a focus of the team at JPM Global Equity Income.
The JPM Global Equity Income Fund has provided the highest returns for 1, 3, and 5 years amongst OEICS focused on the global equity sector.
JPM Global Equity Income Fund
The fund size is £185mn with a current yield of 2.07%, and their benchmark is the IA Global Equity Income index.
The JPM Global Equity Income Fund has consistently outperformed the IA Global Equity Income index. The funds’ 1 and 5-year returns were 13.5% and 65.6%, significantly higher than the IA benchmark of 8.3% and 35.2% over the same period.
Portfolio
JPM Global Equity Income Fund has invested mainly in the US, Europe, and the Middle East, excluding the UK and emerging markets with weights of 59.6%, 20.1%, and 6.2%. The fund has 3.2% of holdings in the UK.
Investors will be pleased to see that JPM Global Equity Income Fund has limited exposure to Russia and China and the volatility those markets are experiencing.
The fund has focused its investments in the technology sector associated with hardware and software with 11.4% and 6.6% holdings followed by banking and pharmaceuticals with 11% and 9.9%.
Microsoft has a weight of 4.9%, making it the top holding for JPM Global Equity Income Fund. Microsoft is a technology giant in the US whose shares remain stable. The company has a dividend yield of 0.8% and the shares have climbed by 354% in the past 5 years.
JPM Global Equity Income Fund has a 2.4% investment in McDonald’s, the global fast-food chain. McDonald’s has a dividend yield of 2.3% and has seen profits increase by 59% in 2021 to $7.5bn from 2020.
The fund includes the beverage giant Coca-Cola and has a holding of 3.9% in the company. The company has a dividend yield of 2.93% and shares have seen a 43% increase.
In addition, JPM Global Equity Income Fund has invested in Mastercard and Abbvie, to add to their diverse portfolio of income producing heavyweights.