Client demand prompts fund's addition following three year performance data
The JPM US Equity Income fund has been added to Skandia Life's platform (SLAC) due to strong demand from clients. Last week, the £426m fund celebrated its three year anniversary, returning 43.85%* over that period. Over 1 year alone, it has returned 5.04%**, against the S&P 500 which produced -0.66% over the same period.
Mike Parsons, Head of UK Retail Sales at J.P. Morgan Asset Management commented: "The JPM US Equity Income fund is a low-beta traditional equity income fund that has delivered excellent returns amid extremely volatile market conditions and unsurprisingly, it has been one of our best selling funds this year. We're very pleased that demand from Skandia's clients has prompted the addition to their platform."
"Volatile markets and low interest rates have made it hard for investors to participate in any market upturn, whilst benefitting from downside protection and a reliable income stream. This fund has delivered on all three of these."
The fund's objective is to generate total risk-adjusted returns from both capital appreciation and dividends, targeting a current yield of at least 100 basis points above that of the S&P 500. The fund is currently yielding 3.3%, against the 2.2% of the S&P 500, which it achieves by investing in financially strong US companies that generate the cashflow needed to pay out a rising dividend stream.
Parsons continued: "When we launched the US Equity Income fund three years ago, it was the first of its kind in the UK and we knew the demand for such a product existed, having tested our clients' appetite. Whilst investor sentiment remains understandably cautious, domestic US economic data continues to improve and the JPM US Equity Income fund gives investors exposure to high quality US companies, paying a good dividend yield."
"To date, the fund has attracted over £420m as more investors are, quite rightly, beginning to add some overseas exposure to their income portfolios. Now with an excellent three year track record, the fund is appearing on clients' radar screens more and more and demand for the fund is growing rapidly."
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