JPMAM launches JPM Global Equity Income Fund

JPMorgan Asset Management (JPMAM) has today announced details of the new JPM Global Equity Income Fund.

The fund, due to be launched on 7 February, has been developed in response to growing client demand and the changing investment landscape. The fund will have an estimated gross yield of 4% at launch and aims to provide increasing dividends as well as long-term capital growth.

Income goes global

Investors in equity income funds are looking for superior yields as well as long-term growth of the underlying stocks in the fund and British investors have traditionally favoured the UK stock market for their income investments. However, the concept of shareholder value is a global phenomenon and there are excellent opportunities for income investors who wish to diversify away from the domestic market place. For example, of the highest yielding stocks on the FTSE All-World Developed Index (as at November 2006), only 13 are UK companies; the others are to be found in markets as varied as Australia, Singapore, and Spain. Furthermore, by taking a global perspective UK investors can benefit from the very best 'dividend growth' opportunities too. Our studies reveal that over the last eight years, Europe's 143% growth record far outstrips an already impressive 115% growth in the UK.

The JPM Global Equity Income Fund offers investors the opportunity to capitalise from any stock, sector, or market that offers superior income and long-term growth opportunities.

Stock picking key to fund’s approach

This is a best equity income ideas fund, so the fund manager is not constrained by sector, geographical region, company size, or benchmark weighting. The fund also has a focus on longer term goals so will not simply be focusing on stocks with current high dividends, but ones whose dividend and share price will increase over the medium to long term. The approach taken by the team is forward-looking and each stock is analysed on its own merits, particularly its cash flow. Understanding the cash flow of a company is important in establishing sustainability of dividends, and JPMorgan Asset Management is one of the innovators of the cash-flow based forecasting process with a twenty-year history of this type of investing.

The fund will be managed by Gerd Woort-Menker who has over 23 year’s investment experience. Woort-Menker is based in New York and will supported by two senior global equity portfolio managers and 60 fundamental analysts based in key local markets and experienced at cash flow forecasting.

JPM Global Equity Income Fund – Key Characteristics

Can be used as a core or satellite investment
No foreign exchange risk - fully hedged into sterling
Potential to beat inflation - growing level of income from capital appreciation
Fairly defensive - holdings are by nature stable
Potential to outperform through the cycle
Available for inclusion in an ISA

Jasper Berens, Head of UK Sales at JPMorgan Asset Management, comments: “With this launch, we believe that once again we are strengthening our core product offering for investors.

The development of this fund follows many months of dedicated research with a number of key clients, which has shown that there is significant demand for a more diversified product that also offers the opportunity for sustained income. We have a highly commendable proven track record in managing this type of product for clients in other parts of the world, and I am delighted that we can now offer UK investors access to this expertise.”