Our refreshing difference can be your advantage
The investment process that powers our UK equity funds is focused only on the factors that drive long-term stock market performance. Whatever your UK portfolio challenge, we can offer a distinctive and refreshing solution.
FEATURED UK FUNDS
What is behavioural finance?
- An investment process based on the academically robust principle that market inefficiencies are a result of human behaviour
- A bespoke investment process that defines and measures specific behaviours
- Exploits the opportunities that arise from irrational decisions by others
Our process that ranks companies on three criteria
Why UK Equities?
UK valuations are relatively attractive
- UK equities are neither cheap nor expensive relative to their historical average price-to-earnings (P/E) ratio, but relative to government bonds the dividend yield available on UK equities looks attractive.
- UK earnings have plenty of room for recovery after their poor performance in recent years. As a result, the cyclically-adjusted P/E, which takes into account our position in the earnings cycle, leaves UK equities looking very cheap relative to their long-term average.
UK equities aren’t the UK economy
- UK-listed international exporters benefit from the fall in sterling.
- In a world where income is increasingly hard to come by, UK equities offer a very attractive dividend yield relative to other equity markets.
- Earnings expectations for UK-listed companies collapsed over the last five years, driven mainly by the fall in commodity prices. Earnings expectations are now rebounding, helped by a rise in commodity prices.
UK offers relatively attractive income
- In a world where income is still hard to come by, UK equities offer a very attractive dividend yield relative to other equity markets.
Featuring exclusive content from Money Marketing and our fund managers here at J.P. Morgan Asset Management, The UK Edge brings professionals together to engage, debate and share opinions to help you navigate the crowded UK investment landscape.Join the UK Edge