Despite being launched in April 2008, just prior to stock-market meltdown, the JPM Global Consumer Trends Fund has managed to perform extremely well since inception, beating its benchmark, the MSCI World Index, by a wide margin. Over one year, the fund is also the top performer in the Investment Management Association's (IMA) specialist sector.
The fund aims to benefit from enduring long-term changes in consumer trends around the world, driven by three pillars: aspiration, demographics and urbanisation, along with health & wellness. The fund is described as "a truly global and diversified" offering that is not constrained by size, index or geography, and where all avenues can be explored regardless of size, sector or location.
The fund is managed by Peter Kirkman, who together with his team, can call on the expertise of 260 regional sector specialists globally. Mr Kirkman comments: "The global consumer growth story is not reliant on whether global consumer demand overall is rising or falling, but on the emergence of new consumer spending patterns with than consumer pool. That's where the most profitable opportunities lie."
Within its aspiration theme, the fund recently took advantage of market volatility to add to positions such as Richmont, with expectations that the mining company is likely to be a key beneficiary of strong demand from emerging markets.
According to JP Morgan, this fund may be suitable for investors looking for a higher risk equity strategy to complement an existing core portfolio. Investors should have at least a five-year investment horizon. Also remember that the underlying assets of the fund are denominated in currencies other than sterling and are not hedged, so your investment will therefore be exposed to the currency risk of fluctuations between sterling and the currency denomination of the underlying assets.
Full data and a PDF factsheet for JPM Global Consumer Trends Fund is available here.
|JPM GLOBAL CONSUMER TRENDS FUND ACC NAV (C5GCY)|
|SIZE OF FUND||£32.7m||3-MONTH PERFORMANCE||-3.97%|
|No OF HOLDINGS||66*||6-MONTH PERFORMANCE||2.93%|
|SET UP DATE||07-Apr-08||1-YR PERFORMANCE||27.45%|
|MANAGER START DATE||07-Apr-08||TOTAL EXPENSE RATIO||1.90%*|
|VOLATILITY||2.32||MINIMUM INVESTMENT||£1,000 initial, £100 thereafter|
|TRACKING ERROR||1.83||MORE DETAILS||jpmorganassetmanagement.co.uk|
Source: Investors Chronicle, JP Morgan, Morningstar*
Performance figures as at 19 August 2010
Top ten holdings as at 31 July 2010
|China Hongxing Sports||3.3|
|Merck & Co||3.3|
MORE ON FUNDS...