JP Morgan Elect Managed Growth Investment Trust


#1

What do people think of this investment trust for a fairly cautious portfolio

It invests in other JPM investment trusts and OEICS so should give a good exposure to commodities, property etc without so much volatility


#2

I guess it’s a Split Cap investment trust no? Maybe @james-pigott or @arkwelder will know better.

Its fees are pretty cheap at only 0.58% ongoing charge. Performance looks ok too in that it’s beaten its benchmark. AIC state here: http://www.theaic.co.uk/companydata/A1FF7/performance

 


#3

Not a Split Cap in the conventiona sense, @Lukas, but it is an IT that does have different share classes.

The differences are that with a Split Cap, the returns for each share class are determined from the same assets held by the IT. But with JPM Elect, each share class has its own pool of assets to determine the class’s NAV. A description of the IT’s capital structure can be found under the Capital Structure tab on the AIC’s factsheet: http://www.theaic.co.uk/companydata/A1FF7/capital-structure

F&C Managed Portfolio, Invesco Perpetual Select and JPM European are ones that have similar structures and which immediately spring to mind.

These structures allow the holder to periodically switch between them - and here is the crux - without triggering a CGT event. And without transaction charges being applied too (unless your broker charges one for a ‘corporate action’). This feature is likely to be more beneficial to investors with more substantial holdings and whom already fully utilise their annual ISA allowances. Perhaps those trusts having near-cash share classes being of particular interest.
@phippsit: This trust did have a drawdown of around 40% around the credit crisis, so it depends upon what you mean by ‘cautious’. It is a growth fund and is currently near 100% in equities, so it doesn’t look like it would hold up any better than other ITs in the event of a similar situation. where it could be used is as a one-stop-shop for geographic allocation, in which case it is more comparable with global generalist ITs.


#4

Good point re: the mention of ‘cautious’ , thought it may be good as they may pick up other companies investment trusts at a discount for their fund.