JPMorgan American Investment to change strategy – The Board of JPMorgan American Investment Trust (JAM) has announced its intention to change the large-cap component of the company by moving to a higher-conviction investment approach.
The board has undertaken a review of the options available from the range of strategies offered by JPMorgan Asset Management, JAM’s investment manager, for the large cap portfolio, which represents the vast majority of the company’s asset base. This review has aimed to identify an investment strategy that offers the prospect of attractive returns for the company, while maintaining its “core” US exposure, which the board believes to be important to existing shareholders.
Proposed new strategy
The Company invests in a portfolio of large capitalisation companies, representing approximately 90-100% of the equity portfolio, alongside a portfolio of smaller companies, which can comprise up to 10% of the equity portfolio. Both portfolios invest in North American equities.
It is proposed that the large cap component of the Company will move to a higher- conviction approach combining the best ideas from the Manager’s growth and value investment teams.
The new strategy, described by the Manager as “Equity Focus” with over $2.3b under management, uses an unconstrained bottom-up approach to build a portfolio of high quality companies across the value and growth spectrum.
Management changes
The co-lead managers of the new proposed large-cap strategy will be Jonathan Simon and Tim Parton.
Jonathan is a Managing Director in the Manager’s US Equity Group with some 38 years’ experience with the Manager and currently manages a number of US funds that follows a value mandate as well as being co-lead manager of the Manager’s Equity Focus strategy. He has been an employee of the Manager since 1980 and holds an MA in mathematics from Oxford University.
Tim Parton is also a Managing Director in the US Equity Group, has been with the Manager for 32 years and manages a number of growth strategies including the Growth Advantage Fund and since 28th February 2017 has, alongside Jonathan, been the co-manager of the Manager’s Equity Focus strategy. Tim holds a BSc in economics and accounting from the University of Bristol and is a member of the New York Society of Security Analysts and a CFA charterholder.
The portfolio managers are supported by a local team of over 35 research analysts with specific sector research responsibilities who are responsible for the idea generation and the ongoing monitoring of companies within their sphere of expertise.
If approved by shareholders, this change will mark the end of Garrett Fish’s involvement in managing the Company’s portfolio. Garrett has been the lead investment manager of JAM’s portfolio for over 15 years. The announcement says that he is moving on to other responsibilities with the Manager that have necessitated his departure.
JAM: JPMorgan American Investment to change strategy