JPM US Equity Income C

Equity income fund invested in large and mid-cap stocks.

  • 386.90p
    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.

  • 352.50p
    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?

  • 0.00%

    Initial charge

    Some 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!

  • 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).

  • 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.

  • 1.90%
    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…

Prices as at 22 June 2021, fund data last updated 24 October 2016

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 £3,551m
Yield 1.90%
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 0.93%

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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

  • 16/17 -0.11%
  • 17/18 0.29%
  • 18/19 -0.22%
  • 19/20 -0.79%
  • 20/21 -0.40%

Bestinvest MRI

  • 3 years -0.47%
  • 5 years -0.25%
  • Career -0.08%
  • 3 years 8.90%
  • 5 years 20.90%
  • Career 61.40%

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 12.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from February 2009 - August 2020) there was a decline of 24% relative to the index. The worst absolute loss has been 20%.

Periods of worst performance

Absolute -20.00% (July 2019 - March 2020)
Relative -24.00% (February 2009 - August 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

2.6% Comcast Corp(New)
2.6% Johnson & Johnson
2.5% Bristol Myers Squibb Sa
2.5% Blackrock Inc
2.4% Bank Of America Corp
2.3% Home Depot Inc
2.3% Cme Group Inc
2.2% Texas Instruments Inc
2.2% Nextera Energy Inc
2% Microsoft Corp
Source: Trustnet

Sector breakdown

Financials 24.00%
Health Care 16.00%
Industrials 12.00%
Information Technology 12.00%
Consumer Staples 11.00%
Consumer Discretionary 7.00%
Utilities 6.00%
Communications 5.00%
Energy 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

Key Investor Information - Income

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Key Investor Information - Accumulation

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