JPM Fusion range turns to the UK for returns

Tony Lanning, lead fund manager for the fund-of-funds team, said the five Fusion portfolios have a “notable” allocation in UK funds and they have benefited from the economic recovery.

He said this included UK multi cap funds and particularly UK small cap exposure, which taps into UK growth in a “purer” way.

The JPM Fusion Conservative Fund and JPM Fusion Income Fund have their biggest holdings in the UK at 18.6 per cent and 15 per cent respectively.

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The other three funds, the JPM Fusion Balanced Fund, JPM Fusion Growth Fund and JPM Fusion Growth Plus Fund, have the largest allocation in the US at 22.6 per cent, 28.7 per cent and 45.7 per cent respectively.

Mr Lanning said: “We still like the US but recognise the Fed’s concerns over growth. Fiscal drag will ease and we are expecting a reacceleration of growth.”

One of the most significant positions is in investment trust Aberforth Smaller Companies fund, with a 4.2 per cent holding for the balanced fund and a 4.9 per cent holding for the growth fund.

Mr Lanning said: “Valuations are more attractive at the lower end of the market cap spectrum and we see a lot of latent value in Aberforth’s portfolio.”

The Fusion portfolio range launched in March and has an annual management charge of 0.75 per cent.

According to Morningstar, the three-month trailing returns on the funds were: balanced – 4.98 per cent, conservative – 4.5 per cent, growth – 6.2 per cent, growth plus – 5.51 per cent, and income – 3.19 per cent.