fund
JPM US Equity Income C
Equity income fund invested in large and mid-cap stocks.
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421.40p
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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387.60p
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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0.78%
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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1.80%
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's objective is “to achieve income by investing primarily in US equities in any economic sector whilst participating in long term capital growth". To achieve this manager Clare Hart invests in a diversified portfolio of primarily large and mid-cap stocks, focusing on undervalued companies with durable franchises and strong free cash flows. Typically this leads her towards the financials, utilities and consumer sectors, whilst IT has often been an underweight.
Fund summary
| Sector | North America |
| Structure | OEIC |
| Launched | July, 2011 |
| Size | £3,840m |
| Yield | 1.80% |
| Charging basis | Capital |
| Dividends paid | 31 Jan, 30 Apr, 31 Jul, 31 Oct |
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 | 0.78% |
Allocation
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Investment process
JPM employ a bottom-up fundamental approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening, and proprietary fundamental analysis. The goal is to create a portfolio that yields 1% above that of the S&P 500. JPM’s investment philosophy is based on the premise that stock selection, focused on undervalued companies with durable franchises and strong management, should generate consistent returns over the long term. The cornerstone of JPM’s investment philosophy is the belief that companies and their management teams who demonstrate an ability to generate free cash flow on a consistent basis, coupled with superior expertise in capital allocation will maximize per share earnings growth over the long term. Ultimately, successful identification of these companies will increase the probability of providing consistent above average returns for clients over a market cycle.
Manager research
Average monthly relative returns
- 17/18 0.35%
- 18/19 0.06%
- 19/20 -0.08%
- 20/21 -1.43%
- 21/22 -0.06%
Bestinvest MRI
- 3 years -0.52%
- 5 years -0.23%
- Career -0.10%
- 3 years 6.90%
- 5 years 23.60%
- Career 55.20%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Clare Hart
Hart, Vice President, is a portfolio manager and analyst in the US Equity Group at JP Morgan. She has been with the company since 1999 and is also responsible for analytical coverage of the financial services and real estate sectors for the US Equity Value Team. She previously worked at Solomon Smith Barney equity research covering Real Estate Investment Trusts. She began her career at Arthur Andersen, working as a public accountant. Hart has a BA in Political Science from the University of Chicago, an MSA from DePaul University and a CPA granted by the State of Illinois.
Track record
Clare Hart has 12.8 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 February 2009 - August 2021) there was a decline of 25% relative to the index. The worst absolute loss has been 20%.
Periods of worst performance
| Absolute | -20.00% (July 2019 - March 2020) |
| Relative | -25.00% (February 2009 - August 2021) |
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 30 November 2021
| 2.9% | Unitedhealth Group Inc |
| 2.7% | Bank Of America Corp |
| 2.6% | Conocophillips |
| 2.4% | Comcast Corp(New) |
| 2.4% | Blackrock Inc |
| 2.3% | Pnc Financial Services Group |
| 2.2% | Cme Group Inc |
| 2.2% | Analog Devices Inc |
| 2.1% | Morgan Stanley |
| 2% | Texas Instruments Inc |
| Source: Trustnet |
Sector breakdown
| Financials | 25.00% |
| Health Care | 16.00% |
| Industrials | 12.00% |
| Information Technology | 10.00% |
| Consumer Staples | 9.00% |
| Consumer Discretionary | 8.00% |
| Energy | 6.00% |
| Utilities | 4.00% |
| Communications | 3.00% |
| Materials | 3.00% |
Portfolio
85-110 holdings with position sizes normally between 1% and 3%. Diversified, broadly large and mid-cap. Tendency to have higher exposure to financials, utilities and consumer sectors with less exposure to information technology and healthcare.
Constraints
Will normally only invest in stocks that have a dividend yield of 2% or greater