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JPM global fund adds unhedged share class

JP Morgan is introducing an unhedged share class in its £114.5m global equity income fund after blaming recent poor performance on the decision to hedge the fund back into sterling.

The global equity income fund was ranked the 22nd-worst performer in the global sector in Bestinvest’s Spot the Dog report published last week. The fund is down by 2.4 per cent on a cumulative basis over a three-year period to August 26, according to Morningstar.

Portfolio manager in the global equity team Alex Robins says: “We hedge the currency in the fund back into sterling and so when sterling is weak against the euro, as it has been for the last three years, we do not benefit from being unhedged like other global competitors do, so we have lost a lot of performance by being hedged back into sterling.

“We are launching an unhedged share class for the fund towards the end of this year or the beginning of next year. I think the charges will be the same but we will have to confirm that. We have not seen the inflows we would like, we are still around £114.2m and we think we can grow to £616m.”

Premier Wealth Management managing director Adrian Shandley says: “There are so many currency-related crises at the moment, so I think hedging is the safest bet, although it might not produce the best returns all the time.”


HML accounts reveal FSA probe in 2010

HML’s 2010 accounts show the mortgage servicer was subject to a Financial Services Authority investigation in 2010. The accounts say the investigation had been ongoing for some time and there was a risk the company could be fined or have to pay redress. The 2010 results, filed at the weekend, say: “The company is in […]

Rensburg Fund Management to be renamed as Franklin Templeton

Rensburg, having been acquired by Franklin Templeton in January, will undergo the rebranding from October 17. Following FSA and pending unitholder approval, all six of Rensburg¹s funds will convert from unit trusts into Oeics, all of which will adopt theFranklin prefix. Franklin Templeton head of UK distribution Ian Wilkins has said that the changes will […]


FOS to name firms when publishing ombudsman decisions

The Financial Ombudsman Service plans to name financial firms involved in complaints when it publishes ombudsman decisions under new Government rules. The draft Financial Services Bill sets out the Government’s intention to require the FOS to publish final decisions. The bill does not specify whether or not the identities of the firms involved should be […]

Aldermore launches 100% LTV mortgage

Aldermore has launched a family guarantee mortgage, available up to 100 per cent LTV. The mortgage has a three-year fixed rate of 6.48 per cent and parents, step-parents or grandparents will be asked to provide a guarantee secured against their residential property for the amount of loan above 75 per cent LTV. The family guarantee […]


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