Fact sheet: JP Morgan European Income IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
EUROPEAN EQUITIES
Sector
IT Europe
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates JP Morgan European Income IT

Rated Fund 2015-2018. Looks for sustainable dividends from larger companies

JPMorgan European trust is unusual as it has two portfolios of assets. One is income-oriented and the other is designed to produce capital growth. Shareholders in either of the two portfolios are able to convert some or all of their shares into the other on an annual basis in March each year, without incurring any liability to capital gains tax.Income shareholders receive a yield of 2.9 per cent and the income is paid quarterly. They also receive any growth in the assets of the income portfolio. The trust has been run since 2006 by Stephen Macklow?-Smith, Alexander Fitzalan Howard and Michael Barakos, and they were joined by Thomas Buckingham in 2016. The managers choose stocks from a list of companies with the highest yields that have been screened for sustainability of dividends and momentum characteristics. They invest mainly in larger companies, but the portfolio also holds some medium-sized businesses.It is a more economically sensitive fund than others in our selection, with 37 per cent of the portfolio in financials, 10 per cent in industrials and 10 per cent in consumer discretionary stocks at the end of 2017.Shares in the trust generally trade at a discount to net asset value and could be picked up at a high single-digit discount at the end of 2017.<\p>

3 Year Performance
Fund Performance33.9%
Average of Rated Funds Group51.4%
Sector Performance34.7%
Fund information
Fund name
JP Morgan European IT Plc Income Shs 2.06155P
Fund manager company
JP Morgan Asset Management UK
Fund type
Investment Trust
Fund managers
  • Michael Barakossince 01/03/2013
  • Alexander Fitzalan Howardsince 02/08/2006
  • Stephen Macklow-Smithsince 02/08/2006
Accolades
Fund objective
Aims to provide a dividend income, together with the potential for long¬term capital growth from Continental European investments by outperformance of the MSCI Europe ex-¬UK Index. The company will predominantly invest in quoted companies with a record of paying sustainable high dividends. Currency exposure is predominantly hedged back towards the benchmark. The company has the ability to use borrowing to gear the portfolio within the range of 10% net cash to 20% geared in normal market conditions.
Benchmark
  • MSCI Europe ex UK
Investment style
Growth
Investment method
No data available.
Quick stats
1 Year return
7%
1 Year rank in sector
5/8
Sector
IT Europe
Yield
3.5%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.05%
Fund size
£168m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
149
Mid price
164.75
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
180.4
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-8.68
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
106
Top in this sector
Fund name1 Year
Jupiter European Opps18.5%
BlackRock Gtr Eur IT12.3%
The European Inv Tr8.8%
JP MgnEupn IT GthSh7.5%
JP Mgn Eupn IT IncSh7%
...more in IT Europe

Performance snapshot

Holdings snapshot

  • No data available.
  • Financials34.7%
    Industrials11.2%
    Consumer Discretionary9.3%
    Energy7.6%
    Utilities7.5%
  • No data available.

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund5.8%-1%0.9%7%33.9%94.5%
Sector5.6%0.5%0.9%7.9%34.7%80.4%
Rank within sector5 / 86 / 85 / 85 / 84 / 82 / 8
Quartile3rd3rd3rd3rd2nd1st
Calendar performance
 YTD - 20182017201620152014
Fund-0.2%26.9%4.3%14.3%8.9%
Sector-0.4%27.8%5.9%12.1%5.8%
Rank within sector5 / 85 / 86 / 85 / 82 / 8
Quartile3rd3rd3rd3rd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-0.7
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.12
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.4
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
15.58
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
6.92
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.01
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.81
Price movement
52 week high175.5
52 week low150.25
Current bid price162.5
Current offer price167
Current mid price164.75
Region
No data available.
Industry sector
1Financials34.7%
2Industrials11.2%
3Consumer Discretionary9.3%
4Energy7.6%
5Utilities7.5%
6Real Estate7%
7Health Care6.7%
8Materials5.8%
9Telecommunications Utilities5.4%
Asset type
No data available.
Individual holdings
1NOVARTIS AG2.7%
2ROCHE HLDG AG2.3%
3TOTAL SA2.2%
4ALLIANZ SE1.8%
5BANCO SANTANDER SA1.8%
6BASF SE1.5%
7NOVO NORDISK A/S1.5%
8BNP PARIBAS1.4%
9DAIMLER AG1.4%
Management
Fund manager group
J.P. Morgan Asset Management
Fund manager company
JP Morgan Asset Management UK
Fund type
Investment Trust
Fund objective
Aims to provide a dividend income, together with the potential for long¬term capital growth from Continental European investments by outperformance of the MSCI Europe ex-¬UK Index. The company will predominantly invest in quoted companies with a record of paying sustainable high dividends. Currency exposure is predominantly hedged back towards the benchmark. The company has the ability to use borrowing to gear the portfolio within the range of 10% net cash to 20% geared in normal market conditions.
Benchmark
  • MSCI Europe ex UK
Investment style
Growth
Investment method
No data available.
Fund managers
NameSinceBiography
Michael Barakos01/03/2013Michael Barakos, Managing Director, is a portfolio manager and Head of the Style investment team responsible for managing value, growth, income, active extension and absolute return portfolios for the J.P. Morgan Asset Management International Behavioural Finance Team. Michael was Chief Investment Officer and Head of the European Equity Group – Behavioural Finance Team between 2009 and 2016. An employee since 1999, Michael obtained a BSc (Hons) in Economics from the London School of Economics and Political Science and is a CFA charterholder.
Alexander Fitzalan Howard02/08/2006Alexander Fitzalan Howard, managing director, is a portfolio manager within the J.P. Morgan Asset Management European Equity Group managing both institutional and retail products. An employee since 1986, Alexander was previously an investment manager with the J.P. Morgan Asset Management North American Portfolios Group, most recently running the desk. Before this, Alexander was involved in the development of the Czechoslovakia Investment Corporation Inc., and responsible for the establishment of the first Czech domestic mutual funds managed by Investicni Banka and administered by Save & Prosper. Prior to this, he assisted in the fund management of the Save & Prosper financial sector unit trusts and was responsible for analytical coverage of the financial and media sectors. Alexander obtained a B.A. (Hons) in Modern History from Oxford University.
Stephen Macklow-Smith02/08/2006Stephen Macklow-Smith, Managing Director, works as the strategist within the J.P. Morgan Asset Management International Behavioural Finance Team, as well as being a senior portfolio manager responsible for Core Behavioural Finance portfolios and the JPMorgan European Investment Trust. An employee since 1997, Stephen was previously Head of the European team at HSBC Asset Management. Prior to this, he was a fund manager of European pension fund assets at Henderson Administration. Stephen obtained an M.A. in Classics and Modern Languages from Oxford University.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
JP Morgan European IT Plc Income Shs
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price180.4
CurrencyGBX
Price updated17/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJMU
JP Morgan European IT Plc Income Shs 2.06155P
Initial charge-
Annual charge0.75%
Min single investment£0
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)1.05%
Total expense ratio (TER)1.12%
Bid price162.5
Offer price167
Mid price164.75
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeJ219
Data provided by

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