Currency exposure still a concern for investors

J.P. Morgan Asset Management has added a sterling hedged share class to its OBSR A rated JPM Europe Dynamic Ex-UK Fund following growing demand from its clients.

The hedged share class will enable advisers and direct investors, who are not prepared to take a currency risk, to invest in the £122m fund.

Jasper Berens, Head of UK Retail Sales at J.P. Morgan Asset Management said: "Currency risk is now, more than ever, a growing concern for investors and we have launched this as a direct response to the needs of our clients. As the Euro continues to weaken against Sterling it is right to give investors, who are not prepared to be exposed to both market and currency risk, a choice between share classes. We firmly believe that there are many advisers and investors who would invest more in European equities right now but are nervous about the currency risks of doing so.  The launch of this hedged share class removes this risk."

The fund, which was launched in 2004, has an existing unhedged share class where returns can either be enhanced or detracted by currency, depending on prevailing conditions, but now investors can make their own choice as to which share class best suits their requirements.

The JPM Europe Dynamic Ex-UK Fund aims to maximise long-term capital growth by investing primarily in continental European equities. It has returned 75.7% since inception against its benchmark (FTSE All World Developed Europe ex UK) which returned 51.9% over the same period. The fund has also returned 16.7% over 1 year alone.

Kate Nathoo, Regional Director at Thesis Asset Management commented:  "Clients investing in European equities have been rewarded over the years with exceptional returns.  Europe ex-UK is full of leading global companies which are highly exposed to high growth areas of the world.  Returns for sterling based investors have been helped by the strength of the euro versus sterling in the past.  However, with the euro weakening against sterling this is unravelling and it is good to be able to protect returns for our investors with the JPM Europe Dynamic new hedged share class.  This is an ideal solution for investors in Europe who don't want to be exposed to a weakening euro."