JPMorgan Fleming already has a Luxemburg domiciled Europe dynamic fund and the new fund will bring the dynamic investment style, which combines growth and value investing, to the broader European market via an onshore fund.
The fund will not be constrained by a benchmark index so the managers Ajay Gambhir and James Elliot are free to invest in any country sector or size of company. Gambhir and Elliot have more than 20 years experience between them and are currently
responsible for the JPMF UK dynamic fund and the Luxemburg-domiciled Europe dynamic fund.
Growth and value stocks perform differently during the economic cycle so a combination of the two should ensure positive performance is attained in all market conditions.
On the value side the managers will look for cheap companies that may be out of fashion with the stock market but where a catalyst is identified that can release their true value. On the growth side they will look for companies with strong growth characteristics, sustainable business trends and the ability to exceed expectations.
Many funds are managed d relative to a benchmark index which means they are forced to own some stocks which the managers may be less keen on just because they cannot deviate from the benchmark weightings outside the set parameters for tracking error. The consequence of this is that where the benchmark index performs badly, funds can be regarded as successful simply because they have lost less money than the benchmark.
The JPMF fund differs in that it aims to provide the highest return it can independently of a benchmark. However, a pure stockpicking fund with no restrictions means the fund manager has more scope to pick the wrong stocks as well as the success stories.