For investors who want to be safe in professional hands with local knowledge on a global basis, we have the capabilities.
Investing across the worldAt J.P. Morgan Asset Management, we currently provide you with a wider range of investment trusts than anyother manager. Our global presence and extensive resources allow us to offer diversified, professionally managed exposure to the growth potential of global stock markets. Our trusts invest in all the major investment regions around the world – from the UK to emerging markets such as Brazil and China, as well as the US, Europe and Japan. Our fund managers are based in local markets in these regions – we have 14 major investment centres and three main investment hubs in New York, London and Hong Kong. This global network of more than 700 investment professionals is among the most respected in the investment industry and forms the cornerstone of our rigorous research-based investment approach. With a comprehensive trust range covering all major regions and asset classes, we can help meet the needs of the most demanding investors.
Investment trustsOne third of AIC Members (35%), excluding venture capital trusts, have an annual ongoing charge under 1%.Source: Association of Investment Companies, Report & Accounts, as at October 2012
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Over 10 years to 31 October 2012, the average investment company has turned £100 into £276 – an increase of 176%.Source: Association of Investment Companies using Morningstar
10 investment companies have increased their dividend each year for over 30 years, and 17 investment companies have increased their dividend each year for over 20 years.Source: Association of Investment Companies as at March 2012
GlobalDifferent economies perform well at different times and most have something to contribute to an investor’s portfolio. The fall of the Iron Curtain led to huge economic growth in former Eastern Bloc countries, growth that was consolidated when many joined the European Union. The globalisation of trade only emerged after years of tortuous trade negotiation removed tariffs and quotas which for years had held back countries like China and India. Such economies are now huge exporters, but also have a growing domestic consumer base. Only a truly global investment perspective can capture all these powerful themes. Piecing together a global investment needs skill. Our Global Equities team have a wealth of knowledge, but can also call on specialist local analysts for that special insight. For a focus on capital growth across all regions, there is the JPMorgan Overseas Investment Trust plc, which is managed by portfolio managers with an average of 27 years’ experience (as at November 2012). But almost anywhere you want to put your money, you will find a J.P. Morgan investment trust already operating there.
USAThe world’s most powerful economy is full of unique companies, household brands and innovators that investors cannot afford to ignore. Yet many European investors remain underweight in this area, with US equity funds making up only 10% of their total equity fund investments*. The long-term performance of the S&P 500, which is the most representative of all American share indices, is about a fifth better than the UK once reinvested income is accounted for**. Our flagship JPMorgan American Investment Trust plc has a large locally based investment team, two portfolio managers and 15 analysts, with a record of finding the most attractive stocks. The trust has beaten the S&P 500 for the last three years. The US also produces some of the very best small companies. Discovering the next internet or pharmaceutical giant while they are still small is an important skill. Our portfolio manager at JPMorgan US Smaller Companies Investment Trust plc, with 29 years of experience and four dedicated analysts, is well placed to do it (as at November 2012). Whether you want to focus on specific areas of small or large caps, or harness the entire creativity of a now-resurgent economy, J.P. Morgan Asset Management has the breadth and depth to do it.
UK and EuropeBritain and Europe are in rough economic seas at the moment, but for UK-based investors it is important to retain a significant slice of your investments close to home. Besides, household names among British and European shares are offering an historically high level of dividend income. This is in part because the prices of those shares are low, but also because dividends have been growing. Since 1950, around 70% of the returns from the stock market in the UK have come from reinvested dividends, and only 30% from price gains***. The JPMorgan Claverhouse Investment Trust plc, for example, is packed with UK household names and generates a hefty income yield of 4.4%† as reported in the current annual report and has increased it’s dividend every year for the past 39 years. The JPMorgan Mid Cap Investment Trust invests in the more domestically focused medium-sized UK companies that make up the FTSE 250 Index. Investment trusts have a valuable flexibility in that they can hold income in reserve to pay dividends in future, which smooths out returns. For a broader European focus, the JPMorgan European Investment Trust plc (Income Shares) offers a yield of over 5% and some real prospects of long-term price growth. Its sister trust, JPMorgan European Investment Trust plc (Growth Shares) offers some overlap in core holdings, but with faster-growing companies among its smaller constituents††. The Mercantile Investment Trust aims for capital growth in small to medium sized UK companies, and dividend growth at least in line with inflation. All our European and UK trusts are run off the Behavioural Finance section of our European desk, which has 39 investment professionals all working together and using the same philosophy (as at November 2012).
Emerging marketsEmerging markets such as Brazil, Russia, India and China have been a popular investment theme for a number of years, and J.P. Morgan has been there from the start. We are the only provider to offer single-country trusts in Brazil, Russia, India and China. JPMorgan Emerging Markets Investment Trust plc has a long-established management team, and can call on 20 locally based analysts from the Emerging Markets Equity team (as at November 2012). Furthermore, JPMorgan Global Emerging Markets Income Trust plc, which offers a 4.2% yield as reported in the current annual report, is one of the few investment trusts offering significant income across emerging markets¥. JPMorgan Brazil Investment Trust plc is the only trust that specifically targets Brazilian midand small-cap opportunities, while JPMorgan Russian Securities plc is the only purely Russia-focused trust on the market. In the key Asian markets of India and China, both JPMorgan Indian Investment Trust plc and JPMorgan Chinese Investment Trust plc have existed for almost 20 years, the Indian trust being the largest in its sector.
Far EastJapan remains the world’s third largest economy, but since the bursting of its property and stock market bubble at the end of the 1980s, it has performed poorly. Yet by many measures, Japan is home to some of the cheapest stocks in the world right now, and there are plenty of opportunities for sharp-eyedstock-pickers. As you would expect, we offer a considerable choice. The JPMorgan Japanese Investment Trust plc benefits from the expertise gained as Japan’s leading foreign asset manager, with over 30 years’ experience in seeking out the most attractively valued Japanese stocks. JPMorgan Japanese Smaller Companies Trust plc provides access to the innovative and fast-growing smaller companies that are at the core of the Japanese economy. For Asia-Pacific investments excluding Japan, there is the JPMorgan Asian Investment Trust plc. It has holdings in key companies in South Korea, Taiwan and elsewhere, and is aimed at capital growth. We have an unrivalled reach across the Greater China Region, with 67 analysts from Taipei to Tokyo and Seoul to Hong Kong (as at November 2012).
DiversificationIt’s common sense not to put all your eggs in one basket. Diversification means simply that the aim is to build a portfolio across different types of assets, offsetting risk without damaging returns (although diversification does not guarantee investment returns or eliminate the risk of loss). That is easy with closed-end investment trust structures, which free managers from the pressure of having to buy or sell investments to meet redemptions. Geographical spread is an equally important part of diversification. With our many investment trusts, it is simple to have a finger in many investment pies at low cost and with minimal risksfrom foreign exchange movements. Even if your aims change, we have the product to help you. JPMorgan Elect plc allows you to switch between managed growth, income-plus-growth and managed cash up to four times a year without triggering capital gains tax liabilities. J.P. Morgan Asset Management is built to address the need for diversification, with an investment trust to match almost every market, to create a portfolio that gives you the best balance of risk and reward. Over the past eight weeks, we’ve looked at the best economies to power investments and the easiest ways to spread the risks. Whatever your investment goals, J.P. Morgan Asset Management provides you with an effective and efficient way to invest your money. If you’d like to know more, visit the J.P. Morgan Asset Management website.
Sources * Lipper Funds File Europe, December 2011. ** S&P v FTSE All-Share over 100 years. ***Barclays Capital Equity Gilt Study 2012. † JPMorgan Claverhouse Investment Trust plc Annual Report 2011. † † JPMorgan European Investment Trust plc Annual Report 2012. ¥ JPMorgan Global Emerging Markets Income Trust plc Annual Report 2012. ¥¥ Association of Investment Companies as at 30/09/12 in terms of assets under management and number of investment companies. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Services Authority. Registered in England No. 288553. Registered Office: 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom.
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