JP Morgan reaps rewards from UK equity fund focus

The £56.15m fettered fund has edged into the top 10 of the Investment Management Association’s Flexible Investment sector, beating the average three-year return of 13.04 per cent of its peers.

The fund, managed by Katy Thorneycroft, Nadia Grant and David Chan, has achieved year-to-date trailing returns of 24.84 per cent by focusing on regulated collective investment schemes.

A majority of the fund’s key investments are in the UK at 50.04 per cent with a focus on equities at 93.97 per cent. Its top five holdings, including its biggest, JPM UK Dynamic A at 12.54 per cent, are flagship FTSE 100 companies such as Royal Dutch Shell, Vodafone and HSBC.

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The fund has a total expense ratio of 1.68 per cent, an annual management charge of 1.5 per cent and a maximum initial charge of 3 per cent. The initial investment permitted is £1000, with additional and monthly savings of £100. The fund can also be accessed through an Isa.

Struggling to pull itself out of the bottom quartile in the same sector is the Schroder Multi-Manager High Alpha fund. Ranked 91 out of 110 funds, it has a three-year return of 13.2 per cent and year-to-date trailing returns of 24.84 per cent.

The £17.15m fund’s objective is to provide capital growth through investing in collective investment schemes, as well as directly transferable securities, derivatives, cash, deposits, warrants and money market instruments.

Its biggest holding at 19.13 per cent is the JOHCM UK Opportunities A and its biggest stake is in information provider Reed Elsevier at 4.36 per cent.

The portfolio has a 2.2 per cent TER, a 1.5 per cent AMC but no initial charge. It allows an initial investment of £1000, plus additional investments of £500 and monthly savings of £50. It is also available through an Isa.

Juliet Schooling Latter, head of research for London-based Chelsea Financial Services, said: “The argument in favour of fettered funds is that portfolio managers can get funds at a lower cost but the downside is that they are not looking across the market.

“Having said that, JP Morgan has outperformed Schroder and that is down to a marked difference in asset allocation. JP Morgan has invested double the amount in the UK, with nothing in fixed interest and far less in Asia and emerging markets.”


JP Morgan Portfolio
JPM UK Dynamic - 12.54%
JPM UK Focus - 11.56%
JPM UK Active Index Plus - 10.66%
JPM UK Strategic Equity Income - 10.34%
JPM US Value - 8.71%

Schroder High Alpha
JOHCM UK Opportunities - 19.13%
BBH Luxembourg Funds Core Select - 14.54%
Schroder European Alpha Plus - 11.89%
Topix Index Futures -10.82%
Schroder Asian Alpha - 9.64%