JPMorgan AM is unveiling a US Equity Income fund on 15 December to take advantage of attractive valuations and the belief the country will lead the global recovery.
The new fund will sit alongside JPMAM's existing range of US equity products.
Jasper Berens, head of UK retail sales at JPMorgan Asset Management, says: "UK advisers and investors have too much money concentrated in UK equity income funds at a time when the UK economy is suffering, and will do for the foreseeable future. It must be in the interest of all advisers and investors to partly diversify away from that extraordinary concentration in the UK."
Berens points out there are greater opportunities for dividends in the US, with at least three times the number of US companies paying out dividends than their UK counterparts.
He adds: "US valuations are particularly attractive having rarely been lower and therefore having some exposure to the world's largest economy makes sense. Since January 1990 the highest yielding companies have produced the best returns.
"Historically, markets tend to bottom out well before the end of a recession and so investors intending to wait for the recession to end may well miss out on sharp market upturns."IFAonline
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