JPMorgan overhauls underperforming multi-asset fund

JPMorgan Asset Management is to rename its poor performing Cautious Total Return fund and revamp the investment objective.

The £275.5m fund, run by Gareth Witcomb, Talib Sheikh and James Elliot, will now be called Cautious Managed and the investment objective and benchmark will change.

The fund has delivered 3.4 per cent in five years to July 22, less than its 1 month Libor benchmark which has delivered nearly 5.2 per cent, according to FE Analytics.

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Mr Witcomb and Mr Elliot joined Mr Sheikh on the fund in December last year.

The benchmark will now change to 70 per cent JPMorgan GBI Global Hedged to GBP and 30 per cent MSCI World Index (Net) Hedged to GBP.

The group has also changed the fund’s investment objective to include income as part of the aim of the product.

“The fund’s investment objective will be amended from aiming to achieve higher returns than those available from money market instruments over the medium term to instead providing income and long-term capital growth,” it said.

“As a result this changes the strategy of the fund from a total return strategy that seeks to achieve a total return in excess of cash, to a conservative balanced strategy that will seek to outperform a new benchmark.

“A conservative balanced strategy has lower equity exposure compared to a more traditional balanced strategy which is normally divided equally between equities and debt securities.”

The fund will also move from the IMA Mixed Investment 20-60% Shares sector to the Mixed Investment 0-35% Shares sector.

The changes were approved by shareholders at an extraordinary general meeting on July 15.