fund
JPM Europe Dynamic (ex-UK) C
Continental European equity fund run using a behavioural finance process.
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117.40p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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285.30p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.93%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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1.10%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The fund targets long-term capital growth through investment in mainly large and mid-cap continental European equities. The managers use JPM's 'behavioural finance' strategy, which aims to exploit opportunities created by behavioural biases of market participants such as sell-side and buy-side analysts and investors. They believe that companies that are cheap, or high quality, or with strong momentum, are often overlooked by the market and that by investing in a combination of the three, they can generate consistent outperformance.
Fund summary
| Sector | Europe Excluding UK |
| Structure | OEIC |
| Launched | October, 2012 |
| Size | £533m |
| Yield | 1.10% |
| Charging basis | Income |
| Dividends paid | 30 Apr |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.93% |
Allocation
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Investment process
The investment is run using a behavioural finance process, based on the philosophy that attractively valued, high quality stocks with positive momentum outperform the market. JPM’s 50-strong European team all follow this philosophy and maintain coverage on a 1200 stock universe in order to generate a 100-stock portfolio. Companies are assessed on: Value - companies that are cheap on an absolute or relative basis on a variety of valuation metrics; Quality – companies that are profitable, with sustainable earnings, and have sensible capital allocation, in particular avoiding those that issues shares to fund acquisitions; Momentum – companies that are performing well on a share price basis and that have positive earnings revisions. This is the factor that changes most frequently. The fund managers do not meet the management of investee companies, nor do they take a view on the business itself, though financial statements are interrogated as part of the process. Stocks are weighted with the aim of each stock providing an equal return if the investment thesis is correct, rather than based on a conviction level. Holding periods are typically short at around three months on average.
Manager research
Average monthly relative returns
- 16/17 0.13%
- 17/18 -0.03%
- 18/19 -0.33%
- 19/20 -0.49%
- 20/21 0.54%
Bestinvest MRI
- 3 years -0.09%
- 5 years -0.04%
- Career 0.10%
- 3 years 47.60%
- 5 years 61.80%
- Career 99.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Jon Ingram / John Baker
Ingram is a portfolio manager and head of the dynamic team within the JPMorgan Asset Management European Equity Group. An employee since 2000, Ingram was previously an analyst within the team. Prior to this, he was a quantitative investment analyst in the Currency Group. He obtained an MEng in Metallurgy and Science of Materials from Oxford University. Ingram is a CFA charterholder. Baker is a portfolio manager within the dynamic team. He has worked for JPMorgan since 1994, having previously been an assistant on the UK Retail Funds desk. He has a BA in European Studies, French & Italian from University College Cork and a Diploma in Business Studies from University College Galway. He is an Associate of Institute of Investment Management & Research.
Track record
Jon Ingram / John Baker has 16.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.1%. During the worst period of relative performance (from January 2018 - March 2020) there was a decline of 12% relative to the index. The worst absolute loss has been 41%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
Periods of worst performance
| Absolute | -41.00% (October 2007 - February 2009) |
| Relative | -12.00% (January 2018 - March 2020) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 5.1% | Nestle Sa |
| 4.3% | Roche Hldg Ag |
| 3.1% | Sanofi |
| 2.8% | Asm International Nv |
| 2.5% | Enel Spa |
| 2% | Koninklijke Ahold Nv |
| 2% | Allianz Se |
| 1.9% | Zurich Insurance Group Ltd |
| 1.7% | Bnp Paribas Sa |
| 1.6% | Total Se |
| Source: Trustnet |
Sector breakdown
| Biotechnology/Medical | 12.00% |
| Banks | 7.00% |
| Hardware | 7.00% |
| Retailers - General | 6.00% |
| Insurance | 6.00% |
| Electricity Supply | 6.00% |
| Food Producers | 5.00% |
| Financial Services | 5.00% |
| Software | 5.00% |
| Oil & Gas Exploration & Production | 4.00% |
Portfolio
50-100 stocks. Typical position size 0.5-5%.
Constraints
Max 35% in any sector.