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PrintMay 27, 2008
• The investment manager of the JPMorgan American Investment Trust insists now is the time to look to the future and position portfolios accordingly.
London, 27 May 2008: The investment manager of the JPMorgan American Investment Trust insists now is the time to look to the future and position portfolios accordingly.
At the recent AGM of the JPMorgan American Investment Trust, investment manager Garrett Fish stated that whilst the credit crunch is not over, the US economy is bottoming out and now is the time to follow convictions.
Fish maintains that in equities the US economy has experienced similar cycles previously and, as the Federal Reserve moves to focus on growth, there is the possibility of inflation receding. He said that whilst the immediate outlook for inflation is not certain, the focus of the Federal Reserve should be considered as a sign they are looking forward.
Commenting on his current sector weightings, Fish said, “Throughout 2007 the Trust was under weight US financials. Even though we had a small holding in the sector, we managed to avoid most of the turbulence from brokers, mortgages and sub prime related companies, which obviously benefited performance. We moved to a small overweight position in financials at the beginning of 2008 as there are company specific opportunities in the sector. I also favour technology and have strong convictions in some large cap stocks in this area, for example IBM and Microsoft.”
During 2007 the JPMorgan American Investment Trust returned 6%, whilst the benchmark index, the S&P 500 Composite Index, had a total return of 3.4% in the same period. Year to date the Trust’s relative performance was 1.1%, with a net asset value of -3.5% and benchmark index performance of -4.6%*. Over the longer term the Trust has returned 12.8% in three years and 43.17% over five years, while the benchmark returned 11.46% and 33.46% over the same periods respectively**.
In his presentation Fish said he was underweight in US commodities and utilities citing that whilst there might still be growth in these sectors, he does not find them good value in relation to technology, health care or producer durables.
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Notes
* Year to date performance 31.12.07 to 30.04.08
** Three and five year performances as of 31 March 2008
Relative over weight sectors:
Technology
Health Care
Integrated Oils
Producer Durables
Financial Services
Relative under weight sectors:
Other Energy
Materials & Processing
Other
Auto & Transportation
Utilities
Top 10 holdings:
Exxon Mobil 6.21%
McDonald’s 4.11%
IBM 2.94%
Lockheed Martin 2.90%
MasterCard 2.85%
Microsoft 2.80%
Philip Morris International 2.64%
Hewlett Packard 2.45%
Corning 2.29%
Oracle Systems 2.16%
For further information please contact:
JPMorgan Asset Management
Jayne Bowers
Telephone: 020 7742 8337
Email: jayne.e.bowers@jpmorgan.com
Notes to Editors
JPMorgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.2 trillion in assets under management (the Asset Management client funds of JPMorgan Chase & Co. as at March 31st 2008) and offices in 40 locations around the world, JPMorgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
JPMorgan Asset Management is a trading name of JPMorgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority. Registered in England No. 288553. Registered office: 125 London Wall, London EC2Y 5AJ.
Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise. Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors. Stock market linked investments carry a number of inherent risks. These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets. Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor’s capital.