JPMorgan US Equity Income aims for long-term capital growth as well as income, but is already making good total returns as it is the third best-performing fund over the past year in the Investment Management Association's (IMA) North America sector. It is also one of the highest yielders, offering 2.75 per cent.
The fund has recently benefited from its lower volatility, higher quality investment style as high quality stocks outperformed low quality ones.
Over the third quarter strong stock selection in financials, the fund's largest sector exposure which accounts for nearly a fifth of assets, was the largest positive contributor to performance. Consumer discretionary stocks and health stocks are also are some of the fund's larger sector weightings.
Nearly three-quarters of JPMorgan US Equity Income's assets are in large-cap shares and include multinationals such as oil company Chevron, and healthcare companies Pfizer and Johnson & Johnson.
The fund's managers have used recent market volatility to increase their weightings in some of their higher conviction names, while trimming positions that have performed relatively well and now have less compelling valuations.
The fund is managed by Clare Hart and Jonathan Simon out of New York. Lead manager Ms Hart also runs the JPMorgan Growth & Income Fund and is an analyst in JPMorgan's US Equity Value Group where she covers financial services and real estate.
The fund offers the option of a sterling-hedged share class if investors want to mitigate currency movements.
JPM US EQUITY INCOME FUND A Inc (GB00B3FJQ151) | |||
| PRICE: | 67p | VOLATILITY: | 14.3%* |
| IMA SECTOR: | North America | 1-YEAR PERFORMANCE: | 8.31% |
| FUND TYPE: | Open-ended investment company | 6-MONTH PERFORMANCE: | 2.33% |
| FUND SIZE: | £428m | YEAR TO DATE: | 3.16% |
| No OF HOLDINGS: | 101 | TOTAL EXPENSE RATIO: | 1.68% |
| SET UP DATE: | 15 December 2008 | YIELD: | 2.75% |
| MANAGER START DATE: | 15 December 2008 | MINIMUM INVESTMENT: | £1,000 |
| TURNOVER: | 54.52%* | MORE DETAILS: | jpmorganassetmanagement.co.uk |
Source: Morningstar & *JPMorgan
Performance data as at 5 December 2011
Top 10 holdings as at 31 October 2011
| Chevron | 3.6 |
| Wells Fargo | 3.0 |
| Pfizer | 2.9 |
| Merck & Co | 2.7 |
| Conoco Philips | 2.4 |
| Johnson & Johnson | 2.3 |
| PPG Industries | 2.2 |
| Verizon Communications | 1.9 |
| T Rowe Price | 1.9 |
| Exxon Mobil | 1.8 |
| Sector breakdown | Percentage |
| Financials | 21.1 |
| Consumer discretionary | 14.5 |
| Healthcare | 11.6 |
| Industrials | 11.1 |
| Energy | 10.7 |
| Information technology | 8.9 |
| Consumer staples | 7.9 |
| Utilities | 5.5 |
| Materials | 4.7 |
| Telecom services | 4.0 |
