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JPM US EQUITY INCOME FUND

Taking an income approach to US equity pays dividends

The US Equity Income Fund focuses on high quality, attractively valued companies with healthy and sustainable dividend yields, providing an ideal way to share in the future growth of the US stock market.
 

Morningstar 4 star *

Interview with fund manager Clare Hart   Monthly shareclass factsheet   Monthly commentary   Quarterly fund story  

Talking Points

Key Points

  • High dividend, low payout ratio stocks have outperformed over the last 20 years.
  • Targets an attractive, consistent income stream, providing a more conservative way to access the US stock market.
  • Managed by a strong investment team, leveraging the insights of over 25 US equity research analysts.
  • Top quintile risk-adjusted returns with bottom quintile volatility over three years.*
Growth of USD 1 based on dividend yield & payout ration

Source: J.P. Morgan Asset Management Quantitative Equity Research. The lines illustrate the growth of USD from 01.01.1990 to 30.06.2016. The Y-axis illustrates the portfolio values with a log scale. Each yield/payout combination illustrates compounded total returns: price appreciation + dividend payment. The benchmark is the equal weighted S&P 500 Index. Past performance is not an indication of current and future performance. *Morningstar Rankings/Universe and Morningstar Quartile™: © Morningstar. All Rights Reserved. Trailing three-year returns as of 31.08.2015 based on NAV of share class A GBP, net of actual ongoing charges and any entry and exit fees.


Seeking out the best US dividend payers

High dividend yield, low payout ratio. This suggests that a company can pay and will continue to pay compelling dividends, while maintaining potential for dividend growth and internal investment.

This is the type of high quality company that the US Equity Income Fund targets. These types of stocks have outperformed over the past 20 years. Furthermore, dividends have been a major contributor historically to overall returns, helping to provide a more stable and cautious way to access the growth potential of the US stock market.

S&P 500 TOTAL RETURN INDEX: DIVIDENDS AND CAPITAL APPRECIATION (%)

Source: Standard & Poor’s, Ibbotson, J.P. Morgan Asset Management. Data as of 31.12.2015.


Square Mile’s Talking Factsheet

Talking Factsheets is a service for users of Square Mile’s Academy of Funds. Focusing on funds drawn from their Rated, Recommended, and Positive Prospects fund lists, Talking Factsheets combine Square Mile’s independent, qualitative fund research with user-friendly video content, providing viewers with the opportunity to see and hear Square Mile’s fund analysts giving first-hand, expert perspectives on the funds.

Source: Square Mile Academy of Funds. All data has been sourced independently as at the dates supplied within the video. The content has been reproduced with permission from Square Mile and all opinions are their own.

Performance

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Management

Fund Managers

For more information about this fund, please download the commentary below.

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Disclaimer

*Morningstar Analyst rating, Rayner Spencer Mills rating, Square Mile Research rating and The Adviser Centre rating as at 01 September 2016 .

Morningstar rating based on the A Net (Acc) GBP share class, as at September 2016.

Morningstar Ratings TM: 2016 Morningstar. All rights reserved.

The Adviser Centre is a trading name of City Financial Investment Company Limited.

The methodology and calculations used by the companies or organisations that provide the fund or fund manager awards and ratings are not verified by J.P. Morgan Asset Management and therefore we are unable to accept responsibility for their accuracy.  Ratings and awards should not be relied upon for making an investment decision.  Past performance is no guarantee of future results. The value of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Investment is subject to documentation (Prospectus, Key Investor Information Document (KIID) and Key Features and Terms and Conditions). Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP.
FX Adjusted returns have been calculated by J.P. Morgan Asset Management. Blended benchmarks have been calculated by J.P. Morgan Asset Management. Sector Average-Copyright © 2016 Morningstar, Inc. All Rights Reserved.
Please note that the performance for the D share class is calculated when capital becomes available, which may not necessarily coincide with the launch date.
All equity indices stated as ‘Net’ are calculated net of tax as per the standard published approach by the index vendor unless stated otherwise.
All performance returns are calculated using the quoted price of shares with net income reinvested. Quoted price can swing between the NAV, Bid price and Offer price depending on the cash flow movements of the fund.