Multi-Asset investing fund MATE Plc delivers strong income opportunity linked to CPI


JPMorgan Multi-Asset Growth & Income plc (LON:MATE) combines sustainable income and capital growth from globally diversified investments. The Investment Trust’s multi-asset investing approach aims to achieve a long-term total return of 6% per annum and an initial annual dividend of 4% paid quarterly. This provides an attractive income investing and capital growth opportunity while seeking to maintain lower levels of portfolio volatility than a traditional equity portfolio.

In the company’s latest unaudited half-year results for the six months ended 31st August 2021, the company stated under Revenue and Distributions:

Cognisant of a rise in the medium term risk of rising inflation the Board links its progressive distribution policy to the UK’s annual Consumer Price Index (CPI) from the current distribution level of 4 pence per share per annum. The Company will draw on distributable revenue and capital reserves when the dividend is not covered by current year income.

In a recent interview with QuotedData Founder and Head of Investment Company Research James Carthew, James explains what makes the Company’s dividend unique.

James noted “Earlier this year, the Board decided from now on the manager doesn’t have to generate the revenue to pay the dividend. It can pay some of the capital return out as dividend if it needs to. So, that gives the manager more freedom to buy higher growth but lower yielding investment and that’s hopefully going to improve the total return, i.e. income plus capital return of the whole product”.

James added, “What they started off by saying, we’re going to pay a dividend of 4p on an asset value share price, it’s about £1 so still about 4%, but going forward, we’re going to at least increase this each year by the rate of inflation that’s measured by the CPI Index. So, that means you’ve got inflation-protected high income for the future that isn’t going to be jeopardized by a fall in dividend income.”

Investment Managers, Katy Thorneycroft and Gareth Witcomb set out MATE plc’s investment approach:

We seek to achieve the best investment returns for shareholders while maintaining the overall portfolio volatility below that of equity markets. We do so through investing in a globally diversified portfolio that includes company shares, bonds and other assets. Our aim is to construct an actively managed, balanced portfolio which is flexible with respect to asset class and geography. The increased investment flexibility that was announced in spring of this year allows us to take advantage of the best opportunities to deliver an attractive total return to our investors. We take a research based approach, positioning assets in line with our medium to long-term view of markets, and leveraging the expertise of active managers in portfolio construction.

Funds peformance over the 6-month period ending 31 October 2021

JPMorgan Multi-Asset Growth & Income delivered a positive return on net assets of 9.2% over the period, performing ahead of the Company’s Reference Index which returned +3.0%.

The portfolio’s developed equity exposure was the largest contributor to absolute performance. Our regional equity allocation decisions, implemented via futures, provided a small negative contribution to returns driven by our short US and Continental Europe large cap positions. Performance across fixed income markets was positive in aggregate, with high yield bonds proving the strongest performing sector.

Please find a link to the latest Factsheet at 31 October 2021

October Factsheet

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