JPMorgan Multi-Asset Growth & Income plc (LON:MATE) published their ‘month in review’ for March 2021.
Tim Mitchell, Investment Trust Client Director, at J.P. Morgan Asset Management, commented on the March performance of the trust and the future economic outlook for the rest of 2021:
“The trust delivered a positive return on net assets in March. Equity contributed positively to performance. Our bespoke equity sleeve – which is run by the International Equity Group – was the biggest contributor to performance. Our tactical allocation to be long US small-caps was a contributor to performance, while our long position in emerging market equity and short in European equity detracted slightly.
Fixed income contributed positively to performance too. Our allocations across core government bonds and high yield contributed, while emerging market debt detracted.
Looking ahead, Tim added, “We continue to believe that economic growth will be above trend for the rest of the year, initially powered by the US recovery and with other regions picking up by the middle of the year. We expect inflation to be volatile but ultimately contained while monetary policy remains accommodative. We therefore maintain our risk-on view; however, we seek to express it in a more nuanced way, reflecting the themes of higher yields, cyclical earnings recovery and above-trend growth.
We favour cyclical equity regions and value as a style, preferring US small-caps, Europe and Japan to US large-caps and emerging markets. US yields have scope to rise further, supporting the dollar in turn. Credit, especially high yield, is still our preferred fixed income asset.”
JPMorgan Multi-Asset Growth & Income plc (LON:MATE) combines sustainable income and capital growth from globally diversified investments. The Trust aims to achieve a long-term total return of 6% per annum and an initial annual dividend of 4% paid quarterly.