Multi-managerMay 15 2013

Substantial inflows for popular JPMAM fund

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ByKevin White

The client portfolio manager for the £182.48m fund said it had experienced higher inflows during the past three months than at any other time. Assets under management account for more than 10 per cent of all inflows into the IMA Mixed Investment 20-60 per cent share category.

The global range of JPMAM income funds now boasts more than $11.50bn (£7.39bn) in assets under management, and Ms Mayell said the portfolio’s success was a result of the need to move away from fixed income into other areas.

She said the portfolio’s management team looked for a broader global range of income investments than peer funds, including esoteric assets such as non-agency mortgages.

The portfolio only has 4.2 per cent exposure to the UK, whereas the UK allocation of most multi-asset income funds hovered close to 25 per cent.

Ms Mayell added that it also had a lower percentage of equities across a broader global mix of assets, helping the portfolio to yield between 4.5 to 5 per cent, and offering “a smoother ride for investors than stocks”.

Adviser View

Gavin Haynes, managing director of Bristol-based Whitechurch Securities, said: “The portfolio is certainly a popular choice at the moment. Demand is currently driven by yield. The consensus is that returns will be significantly more subdued, but at the same time advisers are concerned about shifting completely from bonds and cash to equities. So it’s a nice hybrid, and offers an attractive yield.”