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Trust Insider: a good multi-asset fund hidden behind its moving parts
by James Carthew on Feb 04, 2014 at 07:00
In the year to end January 2013, the dividend was fully covered by earnings and the company is slowly building its revenue reserve (today there is 1.46p of income accrued in the income share NAV)
The fund is just over 30% geared with a mixture of fixed and floating rate debt. JPMIG has a £20 million facility with National Australia Bank, which expires in December 2014. It has drawn down the whole amount of the loan and fixed the interest rate on half of it at 2.83% for the duration of the facility.
JPMIG’s benchmark is the FTSE 350 Index. The portfolio differs quite a bit from this, however. Although it is primarily invested in UK equities JPMIG has just over 28% of its portfolio invested in other funds managed by JP Morgan – JPM Multi-Asset Income , JPM European Strategic Dividend and JPM Global High Yield Bond fund.
JPMIG also has a handful of investments in convertible bonds. The multi-asset fund, about 17% of JPMIG’s portfolio, is managed by Talib Sheikh and Michael Schoenhaut and invests around the globe in a mixture of equities and bonds (around 40:60).
The UK equity portion of the portfolio, which is managed by Emly and Baker, is biased to large cap stocks with about 60 holdings, and 45% invested in the 10 largest equity positions at the end of December 2013.
Nuttall’s job, within the JPM team looking after JPMIG, was to manage the element of the fund invested outside the UK equity portfolio.
The new managers of this part of the fund will be James Elliot and Katy Thorneycroft. They have a wealth of experience in managing multi-asset funds of funds so I do not think investors should be too worried about performance following Nuttall’s departure.
Ongoing charges for the year to the end of January 2013 were 1.32%, barely changed on the previous year. The management fee is 0.8% on the first £65 million of assets and 0.7% on the rest; they leave the investments in other JP Morgan funds out of the calculation to avoid double charging.
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