JPMorgan Multi-Asset Growth & Income plc (LON:MATE) published their ‘month in review’ for April 2021.
Tim Mitchell, Investment Trust Client Director, at J.P. Morgan Asset Management, commented on the April performance of the trust and the future economic outlook for the rest of 2021:
Month in Review
“The trust delivered a positive return on net assets in April.
Equity contributed positively to performance. Our bespoke equity sleeve – which is run by the International Equity Group – was the biggest contributor to performance. Our asset allocation to China equity and EUR small cap contributed to performance while our tactical allocation to be long US large cap and short Europe ex-UK detracted slightly.
Fixed income contributed positively to performance. Our allocations across emerging market debt and global high yield contributed to the performance while government bonds detracted.”
Tim noted, “while economic growth in the first half of 2021 will continue to be impeded by the pandemic, the latter part of the year should see a significant upside in consumption as vaccines are rolled out globally and pent-up demand is unleashed. Accordingly, we see earnings for global corporations rebounding over this year to nearly pre-pandemic levels.
The developed world looks to be well on the path to recovery and the coming months should see spectacular economic data. All eyes will be on the degree to which inflationary pressures are as transitory as central bankers are flagging, or whether the growth impetus leads to more persistent price increases. Policymakers have worked to provide enormous support to financial markets over the last year. The challenge now for central banks is to convince markets that they will continue to provide support, even when the global economy is booming.
With valuation spreads persistently elevated relative to their long-term history, we continue to believe that there are opportunities for active managers to add value.”
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.