As the JPM UK Equity Plus Fund reaches its tenth anniversary, we celebrate a decade of innovation, consistency, and long-term outperformance. Launched on 8 September 2015, the fund has consistently demonstrated its ability to adapt and thrive in various market environments.
A journey of growth and innovation
Since its inception, the JPM UK Equity Plus Fund has been at the forefront of active extension strategies, offering a unique blend of long and short positions with the aim of maximising alpha generation and effectively managing risk. This innovative approach has allowed the fund to deploy substantial active money into the portfolio managers’ best ideas, while also effectively managing risk through shorting. By maintaining a net long exposure of 100%, the fund ensures that investors' money works harder, getting enhanced exposure to our investment process through £1.30 of long exposure and £0.30 of short exposure for every £1 invested.
Strategic investment approach
The core investment process the JPM UK Equity Plus Fund employs is adept at identifying stocks likely to outperform and underperform. By utilising an active extension structure, the fund can express negative conviction on a greater number of stocks than its long-only peers. This flexibility has been key to its success, allowing the fund to generate differentiated alpha.
The investment philosophy focuses on three core questions: Is it a good business? Is it attractively valued? Is the outlook improving? This practical approach ensures that the fund remains aligned with its long-term objectives.
The power of active extension
The active extension structure of the fund is a clear differentiator for this strategy. It provides greater exposure to the portfolio managers’ insights while maintaining the same net market exposure as traditional long-only portfolios. This approach has enabled the fund to achieve meaningful underweight positions in unattractive stocks, regardless of benchmark weight, thereby enhancing its alpha generation potential. By shorting stocks with high risk of financial distress, the fund can capitalise on negative market movements, turning potential risks into opportunities.
Performance highlights
Its differentiated approach has allowed the fund to deliver strong returns over the past decade, outperforming the FTSE All-Share Index over the long-run. On top of its annualised outperformance of 1.35% over the benchmark since inception, the fund boasts similarly convincing returns over all notable time periods.
If you had invested £1,000 on 8 September 2015 in the JPM UK Equity Plus Fund you would now be sitting on a pot of over £2,400. That is approximately £300 more, or an annualised outperformance of 1.35% (net of fees), versus the broad UK market.
This has resulted in incredibly strong peer group relative performance, placing the fund in the 4th percentile of all funds within the IA UK All Companies sector since its inception. It has achieved this with a realised tracking error of 4.77% since inception, resulting in an information ratio that is 9th percentile relative to peers over the same time period1.
While the 10 year performance record is peer leading, it is also important to recognise the consistency with which this has been delivered. Looking at the rolling 3-year peer group ranking on a quarterly basis, the fund has been top quartile 75% of quarters and even at its lowest period only dipped into the second quartile. This range of outcomes reflects the strength of the active extension structure, the core investment process in different market environments and the risk management of the fund.
1Fund performance is shown based on the performance NAV of Share Class C (acc), in GBP including ongoing charges, excluding any entry and exit charges, with any income (gross) reinvested. Excess return calculated geometrically. Performance as at 31 August 2025. Morningstar IA sector percentile ranking is for share class C vs. IA UK All Companies universe. Morningstar™ rankings/universe: © Morningstar. All Rights Reserved.
The fund’s exceptional risk-adjusted performance is a testament to two differentiated features. Firstly, its robust core investment process, which efficiently identifies both attractive and unattractive stocks and works well in different market environments.
Secondly, its ability to manage risk by utilising shorts to mitigate incidental risks such as size or macro risks. Combining the two, the portfolio managers can identify winners and losers at a stock level, while managing many of the incidental risks that they are not rewarded for.
A decade of consistent excellence
The fund's consistent performance is supported by a highly experienced portfolio management team, backed by a global network of equity professionals. With a focus on value, quality, and momentum stocks, the fund has demonstrated its ability to outperform through market cycles, giving investors a consistent return stream that can be relied upon. The integration of machine learning models further enhances the fund's ability to identify lucrative investment opportunities and generate returns.
Conclusion
The tenth anniversary of the JPM UK Equity Plus Fund is not just a celebration of past achievements but a testament to the fund's investment team’s enduring commitment to innovation and excellence. As we look to the future, the fund's strategic approach and robust performance make it a compelling choice for investors seeking to navigate the complexities of the UK equity market.