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JPMorgan Global Growth & Income PLC on Thursday said it is cautious about the near-term market outlook amid struggles in healthcare and luxury goods, while Nvidia Corp performed well. The London-based investment trust said net asset value per share was 548.1 pence at June 30, down 3.8% from 569.6p a year ago. NAV total return with debt at fair value was 1.0% in the financial year ended June 30, underperforming against the MSCI All Countries World index in sterling terms. JPMorgan Global noted that the healthcare sector ‘proved difficult for us’ as Bagsvaerd-based pharmaceutical firm Novo Nordisk AS, known for weight-loss drugs Ozempic and Wegovy, detracted. ‘The company endured a testing period after several years of very strong performance fuelled by demand for its obesity treatments. Disappointing clinical trials of a new weight loss drug, Cagri Sema, resulted in substantial negative sentiment around the stock, while its strong competitive position in the weight loss segment is being eroded by similar treatments from other suppliers,’ JPMorgan Global said. Further, the health services and insurance subsector faced a ‘tough’ time, impacting JPMorgan Global’s holding in Minnesota-based healthcare and insurance firm UnitedHealth Group Inc. Meanwhile, Taiwan Semiconductor Manufacturing Co Ltd and Nvidia Corp returned 17% and 18% respectively, but other companies in the semiconductor manufacturer sector struggled. JPMorgan Global added that its overweight position in Paris-based luxury goods company LVMH Moet Hennessy Louis Vuitton SE was ‘problematic’. ‘In our view, this company has one of the world’s best portfolios of luxury brands. We were attracted by a compelling valuation following last year’s weakness, which was driven by slowing demand from Chinese consumers. Our investment thesis was predicated on an eventual recovery in demand. However, this rebound has not materialised. At the same time, the stock came under further pressure due to the threat of tariffs and controversy over workplace practices in two of its brands,’ JPMorgan Global said. The fourth dividend for financial 2025 was 5.70 pence, up 24% from 4.61p a year prior. This brings the total payout for financial 2025 to 22.80p, up 24% from 18.44p a year ago. For financial 2026, JPMorgan Global intends to pay dividends totalling 23.0p, or 5.75p per quarter, an on-year rise of 0.9%. The company highlighted that it paid the fourth dividend for financial 2024 in financial 2025, and the fourth dividend for financial 2023 in financial 2024. That brings the dividends paid during financial 2025 to 27.41p, up 52% from 18.08p in financial 2024. Looking ahead, Chair James Macpherson said: ‘The board shares the portfolio managers’ caution about the near-term market outlook. The US economy has so far proved relatively resilient to uncertainties related to the new US Administration’s trade policies, but it seems wise for investors in all major markets to remain wary of further bouts of US policy-induced volatility. The company’s long track record of good returns and outperformance provides your board with reassurance that its portfolio managers have the skills and experience to steer the company through any near-term turmoil.’ JPMorgan Global Growth shares were 0.4% higher at 574.29 pence each on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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