JP Morgan Fleming Asset Management has launched two new funds that are focused on companies that have disappointed the market and are now exhibiting recovery signals.
The JPMFF Europe Recovery fund was launched because valuation anomalies in recovery stocks can produce strong returns.
The portfolio is designed to seek out European companies that have disappointed the market, but are now exhibiting recovery signals, allowing valuation anomalies to be exploited.
It is to be managed by Jim Campbell, Francesco Conte and Mark Davids, who all currently manage European equity funds.
Jim Campbell, head of the European Recovery and Smaller Companies team, said: 'The difficult economic circumstances of the last three years have contributed to poor financial performance from many European companies and the market is quick to single out such companies and punish them severely. But many of these companies will adapt, survive and recover. Those that do will usually produce excellent returns for investors.
'Research shows that corporate recovery stocks are able to outperform in all market environments be it a rising, falling, value or growth-driven market.'
The second fund is the JPMFIF Global Recovery portfolio. This can invest in any region, any sector and any company with compelling earnings recovery potential. History shows that the share prices of companies with positive earnings momentum outperform their peers.
Restructuring means that many corporate balance sheets and therefore earnings are now geared towards a stabilising global economy.
Jeroen Huysinga, will manage the portfolio, taking a universe of more than 1,500 companies to construct a focused portfolio of 50-100 recovery stocks.
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To open in second half of 2019
Regular reminders and updates
9 December 2019 deadline
Joe McDonnell joins as head of portfolio solutions (EMEA)