View more on these topics

JP Morgan Multi-Asset Income adds to European equities

The £199m JP Morgan Multi-Asset Income fund has upped its European equity exposure to take advantage of the region’s strong dividends.

The fund has recently taken its European exposure within global equities up from 7.9 per cent at the end of 2012 to 12.5 per cent at the end of last month.

JP Morgan client portfolio manager Rob Worthington says: “We have increased our weighting in Europe. We are cautiously optimistic on Europe but from an equity income perspective we are positive. Both the UK and Europe, to a degree, have always had very good dividend paying names.”

Finding yield from equities is currently the fund’s biggest play, with heavy rotation into allocation dividend stocks funded partly from profits taken on high yield bonds.

High yield has recently been brought down from 55 per cent to less than 30 per cent in the fund. However the team believes high yield debt still offers good spreads generally and would consider European high yield in the future.

Worthington also say there are “good opportunities” for yield within European convertible bonds. He adds: “It is an asset class that many would struggle to access, certainly from a yield perspective. Convertibles provide us with good income attributes and a good degree of equity participation.”

Addidi Wealth director Anna Sofat says: “European equities have been undervalued since the bottom fell out of the market in summer 2011.They have recovered, but they have not come back to their pre-crisis level. So I think there is value there to be had.

“From a yield perspective many clients are looking for income and because the values are not there, you are also picking up some decent yields.”



RBS rejects JC Flowers bid for bank branches

Royal Bank of Scotland has rejected a bid from private equity group JC Flowers for 315 of its branches, according to a report in the Financial Times. Virgin Money and JC Flowers have both recently been linked with bids for the branches following the collapse of a proposed £1.65bn deal with Santander in October over […]


MM leader: Euro Nest battle should be avoided

The mood music emanating from recent Department for Work and Pensions meetings with the industry suggests the Government is looking to push ahead with the early removal of Nest restrictions. There is strong cross-party political support for lifting of these restrictions next year, rather than waiting for a planned review in 2017. The Government-backed scheme […]

Fears over threat of 2013 marking a 16-year low for remortgaging

Brokers are forecasting a gloomy year for remortgaging activity and are braced for the possibility of 2013 marking a 16-year low for the sector. Opinions are divided on why, at a time when fixed rates are either at or approaching record lows, remortgaging activity still remains so subdued. Figures from the Bank of England are, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm