- Out of the 63 JP Morgan funds analysed, 16 received a top performance 4 or 5-star rating, while 33 of their funds have consistently underperformed.
- The JPM UK Smaller Companies C Acc fund has been one of the top performers over the past year with a growth return of 23.76% in the IA UK Smaller Companies sector.
- Our analysis identified half of JP Morgan's funds have a history of poor performance, with 52.4% rated as 1 or 2 stars.
JP Morgan, a global financial powerhouse, manages assets totalling $3.4 trillion worldwide. In the UK, the firm oversees £195 billion of investor assets, underscoring its significant role in both the British and global asset management sectors.
This report examines 63 JP Morgan funds available to UK investors. We evaluated each fund's performance over 1, 3, and 5-year periods, comparing them to their sector peers. Based on this analysis, we assigned each fund a rating from 1 to 5 stars, offering a clear performance benchmark within their respective sectors.
Our review highlights JP Morgan's top-performing funds and identifies those that have underperformed. This comprehensive analysis aims to provide UK investors with valuable insights into JP Morgan's fund range, facilitating informed investment decisions.
JP Morgan Fund Performance Summary
We analysed the performance and sector ranking of 63 JP Morgan funds over the past 1, 3 & 5 years, providing each with an overall performance rating.
Our analysis of these 63 funds revealed that 25.4% received a top performing 4 or 5 star rating, with the majority (52.4%) receiving poor performing 1 or 2 star rating.
Best Performing JP Morgan Funds
The table below highlights the 5 best-performing JP Morgan funds, providing a detailed overview of their performance over the most recent 1, 3, and 5-year periods.
These funds have consistently been among the top performers within their respective sectors, which has earned them each a top 5 star rating.
JPM Emerging Markets Income Fund
Established in July 2013, the JPM Emerging Markets Income fund currently oversees a substantial £963.89 million in client assets. This fund aims to offer a reliable income stream, with a focus on investing at least 80% of its assets in companies situated in emerging markets. Its primary strategy is geared towards delivering growth over an extended period spanning 5-10 years.
Impressively, the fund has demonstrated strong performance within the competitive IA Global Emerging Markets sector. Over the past year the fund delivered growth of 9.70%, surpassing the sector average of 6.07%. It's 3 year performance was even more impressive, as it returned growth of 10.99% which was significantly better than the -5.19% sector average.
The funds management employ a meticulous selection processes targeting businesses with robust fundamentals and consistent earnings potential, resulting in significant allocations in sectors such as Technology and Financial Services. Noteworthy holdings include industry giants like Taiwan Semiconductor Manufacturing, Samsung Electronics, and Infosys, underscoring the fund's commitment to companies with robust growth potential.
JPM Europe (ex-UK) Sustainable Equity Fund
The JPM Europe (ex-UK) Sustainable Equity Fund has consistently outperformed its sector across various timeframes. Over the past year, the fund delivered a 16.20% return, surpassing the sector average of 10.02%. Its 3 year performance was 23.07% compared to the sector's 12.58% average, highlighting strong management and resilience in a challenging market.
Over 5 years, the fund returned 51.21%, well above the sector average of 38.82%. The fund's sustainability focus likely contributed to its success, aligning with growing investor interest in ESG-compliant investments. Overall, it stands out as a strong performer within the IA Europe ex-UK Equity sector, offering both short- and long-term appeal.
JPM UK Dynamic Fund
The JPM UK Dynamic C Acc Fund, with assets under management of £217.88 million, has consistently ranked among the top-performing funds in the UK All Companies sector.
Its performance has consistently exceeded sector averages across multiple time horizons. Over one year, the fund returned 21.43% compared to the sector average of 12.25%. The three-year growth was 28.83%, more than double the sector average of 11.16%. For the five-year period, the fund achieved 34.58% growth, surpassing the sector average of 25.39%.
JPM UK Equity Plus Fund
Launched on 8 September 2015, the JPM UK Equity Plus fund has demonstrated robust performance within the UK equity market. The fund has delivered strong returns of 22.02%, 29.03%, and 47.01% over the past 1, 3, and 5 years respectively. These figures significantly outperform the sector averages of 12.25%, 11.16%, and 25.39% for the same periods, positioning the fund as one of the best performers in its sector.
The fund’s primary objective is to achieve capital growth over the long term (5-10 years) by investing at least 80% of its assets in UK companies, both through direct investments and derivatives.
A unique feature of this fund is its combination of long positions, typically around 130% of its net assets, with short positions, approximately 30%, though these allocations may vary depending on market conditions. This approach provides investors with exposure to a broad range of opportunities within the UK market, including small-cap companies that may offer significant growth potential.
JPM UK Smaller Companies Fund
The JPM UK Smaller Companies C Acc fund is one of the best-performing funds, consistently outpacing its sector averages with impressive returns in the IA UK Smaller Companies sector. Over the past year, it has returned impressive growth of 23.76%, which ranked 2nd out of 46 funds. Although its three-year performance showed a negative growth of -5.05%, this was still significantly better than the sector average of -13.6%. Over five years, the fund demonstrated its resilience and growth potential, returning 46.79% compared to the sector average of 25.01%
The fund aims to achieve long-term capital growth by investing at least 80% of its assets in small-capitalisation companies based in the UK. It currently manages £203.57 million of investors’ assets.
The JPM UK Smaller Companies C Acc Fund stands out for its focus on small-cap companies, which are often overlooked by larger funds. This focus allows the fund to identify opportunities within the UK market that have the potential for substantial growth.
Despite the inherent volatility associated with small-cap stocks, the fund's disciplined investment strategy and emphasis on quality companies have enabled it to deliver substantial returns. This makes it a compelling choice for investors who have a higher risk tolerance and are looking for opportunities to achieve capital growth through exposure to dynamic and innovative UK companies.
The fund’s diversified portfolio, particularly in sectors such as Industrials, Technology, and Healthcare, has been crucial to its success, solidifying its position as one of the top options for capitalising on the growth potential of smaller companies in the UK.
5 Worst Performing JP Morgan Funds
As highlighted in our performance analysis, 33 funds within the JP Morgan range have underperformed relative to their sector peers.
Below, we discuss the 5 worst-performing JP Morgan funds, each of which has received a poor one-star rating. We provide an overview of their performance, sector information, and the reasons behind their struggles.
JPM Asia Growth Fund
The JPM Asia Growth C Acc fund is classified within the IA Asia Pacific Excluding Japan sector, where it aims to deliver long-term (5-10 years) capital growth by investing at least 80% in a growth-biased portfolio of companies across Asia, excluding Japan.
Despite its growth-focused strategy, this £264.33 million fund has consistently underperformed in its sector. In the past year, it returned growth of 1.50%, significantly underperforming the sector average of 14.12%. The fund’s 3-year performance has been even more troubling, with a loss of -17.30%, placing it among the worst performers in its sector. The 5-year performance was also poor, with a return of 8.36%, well below the sector average of 15.77%.
Several factors have contributed to the fund’s underperformance. These include its heavy exposure to volatile sectors like technology, which have been particularly affected by regulatory pressures and market instability in key regions such as China. Additionally, broader economic challenges across Asia, including fluctuating trade policies and economic slowdowns, have exacerbated the difficulties faced by the fund’s growth-oriented investments.
JPM Emerging Markets Fund
The JPM Emerging Markets B Acc Fund is designed to provide long-term capital growth over a period of 5-10 years. It achieves this by investing at least 80% of its assets in equity securities of companies that are either domiciled in, or conduct the majority of their economic activity in, emerging market countries.
This £2.29 billion, JPM Emerging Markets B Acc fund has managed to return only 1.57% growth over the past year and is ranked among the worst in the Global Emerging Markets sector. Its performance over the past 3 and 5 years has been even more disappointing, with returns of -19.16% and 1.35% respectively, significantly underperforming the sector averages of -5.19% and 11.53%.
This persistent underperformance highlights the challenges the fund has encountered in navigating the volatile and unpredictable nature of emerging markets. Key factors contributing to its poor returns include concentrated exposure to high-risk sectors and specific stocks that have failed to meet expectations, resulting in a significant lag behind its peers.
JPM Global Macro Opportunities
The JPM Global Macro Opportunities C Acc Fund is designed to achieve positive investment returns by leveraging global macroeconomic trends. It aims to deliver returns over a rolling 3-year period, regardless of market conditions, though positive results are not guaranteed.
The fund employs a multi-asset approach, investing across various asset classes, including equities, fixed income, and sophisticated strategies like relative value and dynamic hedging. The primary objective is to capitalise on the return opportunities created by economic trends while maintaining a strong focus on risk management.
With £499.77 million of clients' assets under management, this fund's strategy has led to underperformance and struggled in recent years. Over the past year, it registered a return of 5.53%, which is below the sector average of 7.96%. The fund's 3-year performance further deteriorated, with a loss of -5.94%, placing it near the sector's lowest ranks. Over a 5-year horizon, the fund continued to underperform, achieving a return of only 10.62%, significantly trailing behind its sector average.
The fund struggled due to unpredictable markets, making its strategy hard to execute. Complex strategies like dynamic hedging didn't thrive in recent conditions, and cautious risk management may have limited returns during market rallies, leading to underperformance.
JPM US Small Cap Growth Fund
The JPM US Small Cap Growth C Acc fund currently manages assets of £175.16 million and has consistently ranked among the worst performers in the IA North American Smaller Companies sector.
The fund's objective is to provide capital growth over the long term (5-10 years) by investing at least 80% of its assets in a growth style-biased portfolio of small-capitalisation US companies.
Over the past 12 months, it has returned growth of 9.14%, significantly below the sector average of 13.16%. Over the past 3 years, this fund posted a negative growth of -13.49%, which was also the worst in its sector. The past 5 years have been a particularly challenging time for this fund, as it returned growth of 24.20% compare to the sector average of 52.79% and ranked 25th out of 26 funds.
The fund's poor performance is due to its heavy exposure to volatile small-cap stocks, particularly in the technology/healthcare sectors and broader economic challenges like rising interest rates and inflation.
JPM US Equity Income Fund
The JPM US Equity Income C Acc fund is designed to achieve income by investing at least 80% of its assets in US equities in any economic sector while participating in capital growth over the long term, typically 5-10 years.
Despite being the largest fund with £3.40 billion, it has consistently underperformed in the IA North America sector. Over the past year, it delivered a return of 9.79%, well below the sector average of 17.11%. The fund's three-year and five-year returns were also weaker than expected, with the fund posting annualised returns of 24.31% and 44.58%, respectively, compared to sector averages of 25.7% and 66.97%.
The fund’s focus on high-dividend-paying stocks has been a key reason for its poor performance. This strategy, while aiming to provide stable income, has not aligned with broader market trends favouring growth sectors like technology. By prioritising income over growth, the fund missed out on substantial returns from companies that reinvest earnings, leading it to be one of the worst performers compared to its peers.
Summary
Our analysis of 63 JP Morgan funds reveals that 16 funds achieved a top 4 or 5-star performance rating, showcasing the firm's capacity to deliver impressive returns in part of its portfolio. However, like all fund managers, JP Morgan also manages several funds that have underperformed, with 52.4% receiving lower ratings, indicating consistent struggles relative to their sector peers. This analysis underscores the importance of careful fund selection within JP Morgan's range to optimise investment outcomes.
For investors, having the ability to identify the best performers from the worst can help improve fund selection and as this report shows, JP Morgan offers some very compelling investment opportunities.
Maximise Your Portfolio Returns with Yodelar
No fund manager can consistently outperform all the time, which is why we believe in diversifying across a range of quality fund management brands. Investing can be complex and stressful, but following a disciplined, long-term strategy can lead to better outcomes.
At Yodelar, our portfolio development is based on years of exhaustive analysis of the fund universe and managers. We evaluate over 100 managers, tens of thousands of funds, and 30,000 model portfolios. Our ongoing research shows that only a small subset of funds and managers consistently outperform, with over 90% of portfolios containing chronic under-performers.
Book a no-obligation call with one of our advisers to explore your options and discover how we can help you maximise your portfolio returns.
