The £53.69m fettered fund-of-funds was launched in 1985 and is managed by Nadia Grant and David Chan. Its strategy is to invest wholly within internal JP Morgan Asset Management funds, offering exposure to global equities to deliver capital growth in the long term.
The fund, which has a minimum investment of £1000 followed by minimum additional investments of £100, is placed 16th in the Investment Management Association’s Flexible Investment category, delivering returns in three years 8.44 percentage points higher than the peer group average.
JP Morgan’s quarterly review of the portfolio revealed that it outperformed its benchmark of 5.87 per cent at 6.60 per cent during the first quarter of 2013, with an increase in exposure to Japan after it “outperformed expectations” and raised hopes of a return to economic growth.
Exposure to Europe excluding the UK was also increased. The portfolio’s asset allocation is 49.18 per cent to the UK, 26.53 per cent to the US, 6.76 per cent to the Eurozone, and 3.86 per cent to Japan.
The fund has a total expense ratio of 1.68 per cent, a maximum annual management charge of 1.5 per cent and a maximum initial charge of 3 per cent. Its largest holding is the £78.77m JPM UK Active Index Plus Fund.
Its managers state that the fund-of-funds may suit investors looking for global equity exposure and who will hold an investment for at least five years.
In contrast the £866.66m CF Miton Special Situations Portfolio delivered a three-year return of 10.79 per cent, 23.20 percentage points lower than the JP Morgan portfolio and 14.76 percentage points lower than the peer average.
Launched in December 1997, the fund is managed by Martin Gray and James Sullivan. It aims to provide long-term growth by investing in a portfolio of other funds, global equities, fixed interest stocks, cash and money market instruments.
The majority of the fund’s equity is weighted towards the UK at 38.65 per cent and Japan at 36.70 per cent.
It has a minimum investment of £1000, followed by minimum additional investments of £1000, a maximum initial sales charge of 5 per cent, a maximum AMC of 1.50 per cent, and a TER of 1.74 per cent.
Adviser comment
Juliet Schooling Latter, head of research for London-based Chelsea Financial Services, said: “We believe that the JPM portfolio’s current asset allocation will outperform in the current climate. Its ongoing charge of 2 per cent plus isn’t cheap for a fettered vehicle, but it has performed consistently well in recent years and is first or second quartile in most periods after charges.
“The Miton fund is run as a particularly defensive multi-asset fund and the asset allocation of the portfolio is very much based on Mr Gray’s views of the macroeconomic environment. The fund does particularly well in downward markets as Mr Gray aims to minimise losses at all times. The fund does tend to lag in rising markets though, which means cumulative performance in the past three years places the fund in the fourth quartile of its sector. We continue to rate the manager and think the fund is suitable for more cautious investors.”