JPM US Select Equity Plus C GBP

Innovative research driven fund that combines both long and short positions in large US companies, keeping net market exposure to 100%

  • 23728.00p
    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.

  • -
    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!

  • 0.80%
    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).

  • 1.20%
    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.

  • 0.00%
    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 09 April 2021

The fund replicates a successful mirror fund that is managed by Tom Luddy in the US. By taking short positions in overvalued stocks as well as taking long positions in attractively valued companies, the fund translates more of the insights from JPM's fundamental research process into active portfolio bets. The overall equity allocation of the fund will range between 30% short and 130%, so overall net market exposure is always maintained at 100%. Nonetheless the fund features some of the features of a hedge fund.

Fund summary

Sector
Structure OFFSHORE FUND
Launched September, 2012
Size £2,169m
Yield 0.00%
Charging basis
Dividends paid

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.80%
Ongoing charges figure 1.20%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

Investment process relies on the fundamental research output of JPM's experienced sector analysts. This analyst research is focused on producing long-term earnings and cash flow forecasts for a broad range of mainly large-cap US stocks, which is then input into a proprietary valuation model. Valuation model generates ideas into stocks that may be fundamentally overvalued as well as those that are attractively valued. These insights are illustrated by a stock ranking system – the most attractively valued stocks suggested by the valuation model are ranked at the top, while the least attractive are ranked at the bottom.

Manager research

Average monthly relative returns

  • 16/17 0.18%
  • 17/18 -0.30%
  • 18/19 -0.05%
  • 19/20 0.34%
  • 20/21 0.22%

Bestinvest MRI

  • 3 years 0.17%
  • 5 years 0.08%
  • Career -0.06%
  • 3 years 87.10%
  • 5 years 79.70%
  • Career 54.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Tom Luddy / Susan Bao

Luddy is a portfolio manager in JPM’s US Equity Group with responsibility for the Large Cap Core and Large Cap Core Plus 130/30 strategies. An employee since 1976, he has held numerous positions in the firm, including global head of equity, head of equity research and chief investment officer. He began his career as an equity research analyst, and became a portfolio manager in 1982. Luddy holds a BS in economics and mathematics from St. Peter's College and an MBA from the Wharton School of the University of Pennsylvania. He is also a CFA charterholder.

Track record

Tom Luddy / Susan Bao has 16.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.06%. During the worst period of relative performance (from February 2008 - June 2016) there was a decline of 31% relative to the index. The worst absolute loss has been 48%.

Periods of worst performance

Absolute -48.00% (October 2007 - February 2009)
Relative -31.00% (February 2008 - June 2016)

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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Portfolio

JPM enhance their traditional long-only portfolio by taking an extra short exposure in unattractive stocks (i.e. stocks ranked in our bottom quintiles) offset by further long positions in the most attractive stocks (i.e. those ranked in the top quintiles). The total of these long-short positions is set at a fixed portion of the portfolio’s value, around 30%, so that the fund is on average long 130% and short 30%. Short and leveraged positions is achieved through a total return swap.

Key Investor Information

Download