JP Morgan Fleming (JPMF) is altering the charging structure on its UK Equity Income fund and changin...
JP Morgan Fleming (JPMF) is altering the charging structure on its UK Equity Income fund and changing its IMA sector.
After the Isa season, the £29m UK Equity Income will start charging annual fees to capital rather than income in order to bulk up the yield, subject to shareholder approval. This follows similar moves from DWS Investments, Marlborough and Aberdeen.
The Standard & Poor's A-rated fund, which currently resides in the UK All Companies sector, will also be shifted into the UK Equity Income universe, so as to compare like with like.
James Inglis-Jones, manager of the UK Equity fund, said: 'The fund was opened up to retail investors last year and is going to move into the UK Equity Income sector in a few months time.
'The management fee was taken from income not capital, which will change. This is a high yielding fund and that yield is being hit by the charges.'
Inglis-Jones said the fund is differentiated from the larger £573m JP Morgan Fleming Premier Equity Income by both performance and mandate.
The funds also use different benchmarks, with Premier Equity Income using the FTSE All-Share and UK Equity Income the FTSE High Yield Index.
Last week, JPMF also completed the merger of its UK and European small cap teams and announced its plans to launch a pan-European small cap fund later this year.
Chris Complin, CIO of European equities, said the merger of the smaller companies teams follows that of JPMF's UK and European large-cap teams under Andrew Spencer in early 1999, now headed by Elliot and Complin following Spencer's move to the US, where he is CIO of US retail operations.
The consolidation of the teams under Jim Campbell, saw the departure of Ross Hollyman, head of UK small caps, who was also was co-manager on the UK Dynamic fund.
Ajay Gambhir will remain as lead manager of UK Dynamic, supported by co-manager James Elliot.
Hollyman also ran the Fleming Smaller Companies investment trust and the JPMF UK Smaller Companies Oeic with Georgina Brittain, who will now manage the two portfolios with the assistance of Complin, who joins her as co-manager.
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