Interactive Investor has added one of JP Morgan’s UK equity funds to its Super 60 list, replacing the Ninety One UK Alpha strategy that it dropped after the departure of fund manager Simon Brazier.
The £1.7bn JPM UK Equity Core Fund joins II’s list as a ‘Core’ UK equity option. II said the fund aims to provide returns “moderately ahead” of its benchmark, the FTSE All-Share, adding that its holdings broadly match those of the index.
II’s head of funds research Dzmitry Lipski said the strategy uses an “established quantitative model” to select stocks.
He added: “The output from the model is assessed and potentially amended by the four-strong management team, drawing on the research of the well-resourced JPMorgan International Equity Group.”
Christopher Llewelyn is the longest-serving manager, with 23 years on the fund, followed by James Illsley, Callum Abbot and Zachariah Chadwick.
Lipski concluded that while the fund’s process might make market inflection points difficult to navigate, it has shown an ability to produce “consistent excess returns over time”, particularly when all three of its broad alpha factors have been favoured by the market, such as in 2013 and 2015.
The fund is first quartile over the past three and five years, according to data from Trustnet.