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Prices & Quotes - UK Markets - JPMorgan American Inv Trust (JAM)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 570.00p
Change Today:
-2.00p
Market Cap:
£1,134.02m
Sector:
Equity Investment Instruments

ISA themes 2009: US recovery

Date: Wednesday 01 Apr 2009

The global downturn has plunged America’s economy into the worst recession since the Great Depression of the 1930s, but some experts think betting on a US recovery might not be a bad idea as talk of green shoots gets louder.

New President Barack Obama has pumped hundreds of billions of dollars into the US financial system and into the pockets of ordinary Americans. A series of policies have been aimed at kick starting the housing market and stemming the tide of job losses.

He’s also taken a tough line with the US car giants. His administration this week rejected turnaround plans submitted by both General Motors and Chrysler. The pair won’t get any more bail-out cash until they resubmit restructuring proposals.

Things are unlikely to get any easier in the short term though, with the Organisation for Economic Cooperation and Development (OECD) predicting a 4% slump in US GDP this year and flat in 2010. That’s far gloomier than the latest estimates from the US Congressional Budget Office.

Investors might also be feeling groggy after a slump in Wall Street’s fortunes since the Dow Jones surged through 14,000 in October 2007. The blue chip index closed at 6,547 last month, its lowest in 12 years, but has staged a stunning recovery since, soaring 21% to 7,924 in just a few weeks.

David McCraw at Aberdeen Asset Management runs the Edinburgh US Tracker investment trust, which aims to replicate the performance of the broad-based S&P 500 index.

He thinks the US has the potential to be among the first economies to show green shoots of recovery as it was quick to cut interest rates and introduce fiscal policies. So, if there is any rebound in the US economy, US equity markets should lead the way.

“The size of the fiscal and monetary expansion will ultimately lead to economic recovery, but the timing is up in the air. Nevertheless, some improvement is expected during the second half of 2009,” says McCraw.

At present there’s very little data supporting a positive outlook, but McCraw explains that equity markets do tend to anticipate trends, so expects to see them rise in advance of any proof of recovery from the statistics.

It’s also worth considering anecdotal evidence that a lot of cash sloshing around in US money market funds has been earmarked for equities. Some put the figure at a mighty $4 trillion.

McCraw is agnostic about market direction as his fund is a tracker, charged with following the market. Its job is not to make calls on the economic environment, just remain fully invested in US equities. The capital NAV of the Trust fell by 9.9% in February, in line with the return from the S&P 500. Its shares are down 20% in the past year.

The JPMorgan American investment trust on the other hand tries to beat the market. It recently started increasing the level of risk in its portfolio following two years actively decreasing its risk exposure.

“It is clear we are close to all time lows across many different metrics, including economic activity, consumer confidence and housing, and given the view it is often darkest before dawn, we have started to add more risk to the portfolio, bearing in mind the long term risk return,” said the investment trust’s fund manager Garrett Fish.

“Any recovery in stock markets could be dramatic, even if timing is unclear, so the portfolio has been adjusted now to ensure we are in the right position when it happens.”

The trust, which trades at a 2.5% premium to net asset value, has seen its share price drop just 8% over the past 12 months. It remains overweight in technology, but has shifted to overweight in consumer discretionary and increased its weighting in financials.

JP Morgan runs its own investment trust ISA. The minimum monthly investment is £100 and any single premium investment must be at least £1,000. There’s a management charge of 0.24% plus VAT of the value of the portfolio per annum and a 1% transaction charge on purchases and sales up to a maximum of £50 per deal.

You can invest your entire Stocks and Shares ISA allowance of £7,200 a year in an Investment Trust ISA.

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JAM Market Data

Currency UK Pounds
Price 570.00p
Change Today -2.00p
52 Week High 573.00p
52 Week Low 338.00p
Volume 359,691
Shares Issued 198.95m
Market Cap £1,134.02m

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JAM Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 27-Aug-20 23-Apr-20
Paid 02-Oct-20 18-May-20
Amount 2.50p 4.00p

Trades for 02-Dec-2020

Time Volume / Share Price
15:14 1,000 @ 569.11p
15:12 121 @ 570.00p
15:12 766 @ 570.00p
15:11 1 @ 569.16p
15:10 15,000 @ 569.50p

JAM Key Personnel

Chair Kevin Carter