JPMorgan Asset Management plans to merge the underperforming UK Focus fund with its UK Dynamic fund as it aims to “simplify and improve” its range.
The £49.3m UK Focus fund will be merged with the £152.7m UK Dynamic fund on May 9, subject to shareholder approval. The merged funds will be managed by the current managers of UK Dynamic - John Baker, Jon Ingram and Blake Crawford.
The UK Focus fund, which was managed by Patrick Vermeulen, has underperformed its benchmark and sector since inception.
It has returned 50.6 per cent since its inception in March 2006, while its benchmark index, the FTSE All-Share index returned 64.7 per cent and its peer group, the IA UK All Companies sector, returned 63.9 per cent in the same period, according to the fund’s factsheet.
Mr Vermeulen will continue his role as head of the European equity research driven process group and will continue to manage the Europe focus and Euroland focus funds.
The UK Dynamic fund has outperformed its sector and benchmark in the past three years. The fund has returned 55.5 per cent, while the benchmark, the FTSE All-Share index, returned 35.4 per cent and the IA UK All Companies sector returned 42.5 per cent in the same period, according to the fund’s factsheet.
