Home >

ii Super 60 - JP Morgan European Income IT

ii Super 60 investments

ii Super 60 investments:
JP Morgan European Income IT

view factsheet

Asset Group Asset Sub-Group Investment Category
Equities European equities Income

Selection rationale:
JP Morgan European Income trust is unusual as it has two portfolios of assets. One is income-oriented and the other is designed to produce capital growth. Shareholders in either of the two portfolios can convert some or all of their shares into the other on an annual basis every March, without incurring any liability to capital gains tax. The prospective yield for income shareholders is currently 5.7% and the income is paid quarterly. They also receive any growth in the assets of the income portfolio.

The trust has been run since 2006 by Stephen Macklow-Smith, Alexander Fitzalan Howard and Michael Barakos. They were joined by Thomas Buckingham in 2016. The managers choose stocks from a list of companies with the highest yields that have been screened for sustainability of dividends and momentum characteristics. They invest mainly in larger companies, but the portfolio also holds some medium-sized businesses.

They contend that unpredictable politics were holding markets back, and that the signs of thawing between the US and China and between the UK and EU have emboldened investors to take advantage of attractive valuations versus bonds and cash. They see further upside with more clarity on trade, Brexit and perhaps some renewed talk of fiscal stimulus.

The trust can be geared to the tune of 20% of net assets, although was using moderate gearing at the end of August 2020.

Please note: As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out. This means the income that is likely to be achieved by funds and trusts in the near future may be far less than the historic yield quoted in the portfolios.

September 2020

view factsheet

back to ii super 60

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.