Edison initiates on JPMorgan Global Grwth & Income
JPGI's discount to cum-income net asset value stood at 9.4% at 23 September, in line with or wider than the averages over one, three, five and 10 years, but well below the five-year high of 15.5% seen at the start of July following the result of the UK's EU referendum. Peers in the AIC Global Equity Income sector tend to trade closer to par, and it is reasonable to assume that once the effects of JPGI's new, higher distribution policy begin to be felt, demand from income-seeking investors could drive a rerating to a level closer to that of the peer-group average. The board has set a maximum discount target of 5%.
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