JPM UK Equity Core Class E Quarterly Accumulation Fund

[Bouleversee]

My daughter tells me she has around £22k in an ISA in the above fund, originating from a Save & Prosper ISA which my late husband must have taken out for her in 1987 and seems to have changed hands a few times since then. Apparently JPM no longer wishes to run ISAs and so she has to decide whether to cash it in or transfer it to HL (default position) or to another ISA (she has ISAs with ii and Selftrade. I gather it is largely, if not totally, invested in UK blue chips but I know nothing about this fund as I don't hold any funds so I don't feel competent to offer the advice she has asked for. So far as I can see, it would appear that it has gone up by around 40% since the beginning of 2015 which I think is somewhat better than City of London IT, for instance, though the latter will have also been paying dividends so I don't know how to compare. I have no idea how the charges compare and I suppose that depends where she holds it to some extent. I have asked her to check that out with her platforms.

Do any other Fools hold and if so what have they decided to do with their holdings? I gather a decision must be made in the near future.

[Backache]

It looks like a fairly typical active UK large cap fund.
Personally I think where to go depends very much on her overall financial situation and the rest of any portfolio she holds.

My own opinion is that unless she has any pressing need for money it makes sense to maintain savings in a tax sheltered environment and would be keen for my kids to maintain ISA's.

As to whether or not to maintain that particular fund it would depend on preferences again. For my own children I prefer that they have International diversification with a bit of an emphasis on smaller caps as I think historically that is where the best growth has come from and may do so in the future . I also quite like passive funds where the costs are low ' though the charges look fairly low on that fund.

[monabri]

Bouleversee , I tried to provide an answer but it raised a query!

monabri

viewtopic.php?p=257401#p257401

[scotia]

I agree with backache (the poster, not the condition) that if she has no immediate need for the cash, it would make sense for her to keep it within a tax sheltered ISA. I have found HL very satisfactory. And still keeping within an ISA, she can sell part (or all) of her existing fund, and re-invest it in other funds or Investment trusts - possibly with a more global outlook. There are plenty to choose from - and although past performance is no guarantee of future performance, the HL site has some excellent comparison tools.
The JPM UK Equity Core fund has closely mirrored a FTSE UK All-Share Tracker, with a total return of about 44% over 5 years. For comparison a FTSE All World Index tracker would have returned around 81%. There is of course, no guarantee that such a divergence will continue.

[mc2fool]

I have nothing to add on the fund itself over what has already been said, but on the matter of where to transfer to, unless she has a good reason for having a third ISA broker, it makes little sense to take the default and transfer it to HL, given that she already has ISAs with ii and Selftrade.

HL charge 0.45%pa to hold funds, so with a fund that is around £22k that's around £99 a year she'll be paying, and of course more as the value of the fund increases.

Dunno about Selftrade but as ii is a flat fee broker and she's already got an ISA there, transferring the JPM fund to it will incur no additional cost, now or going forward.

[YeeWo]

though the latter will have also been paying dividends so I don't know how to compare.

Please have a look at “XIRR” posts on this site. A very kindly-soul “Jon46” gave me tonnes of assistance in this regard, all documented on this site. An appreciation of the Mathematical Power of XIRR May be a good skill for your Daughter also. Suddenly the lights were switched-On!

[Bouleversee]

Many thanks to all. When I referred to the option to "cash it in" I meant within the existing JPM ISA and then transfer the cash to which of her ISA platforms makes the best sense as regards charges. I agree that there is no point in opening a third with HL. I was really wanting opinions on the merits of the particular JPM fund; as has been stated, the history on the HL website doesn't go back very far and I have only been able to discover the top 10 holdings; she already holds all bar two (Diageo and HSBC) of the individual shares mentioned I will check out the other JPM funds held in this one; no idea what the liquidity one does. As she has quite a chunk of uninvested dividends in both her other ISAs, maybe the simplest thing to do would be to transfer it as is to one of her ISA platforms and keep an eye on it thereafter. She has recently started investing in ITs (e.g. SMT, Monks, F&C) as, like mine, her p/fs have become unwieldy but I don't think she has yet bought a global index fund which I agree all my family, including me, should hold. The question is which one. Any advice on that would be gratefully received. Is this as good a time to invest in those as any? I note that the gain on my SMT has fallen rather dramatically of late so maybe it is.

As to XIRR, I will look at that again but I fear that my technical competence and time availability would be lacking. I will pass the buck back to her for this particular exercise.

[Alaric]

I was really wanting opinions on the merits of the particular JPM fund; as has been stated, the history on the HL website doesn't go back very far and I have only been able to discover the top 10 holdings; she already holds all bar two (Diageo and HSBC) of the individual shares mentioned I will check out the other JPM funds held in this one; no idea what the liquidity one does.

It's following a benchmark of the FTSE UK All Share, so you can look at it as an actively managed tracker. It's lower risk in the sense that if the market as a whole does well, it will as well. If the market tanks, likely it will go down with its benchmark unless the managers are nimble enough or allowed to move into cash.


A liquidity fund is likely one that mostly holds cash or near cash, so one with limited volatility but limited returns.

[Bouleversee]

Alaric said:

" A liquidity fund is likely one that mostly holds cash or near cash, so one with limited volatility but limited returns.[/quote]"

So more or less the same as all the uninvested cash we have sloshing around in our ISAs because we don't know what the heck to do with it in these strange circumstances.

[Alaric]

So more or less the same as all the uninvested cash we have sloshing around in our ISAs because we don't know what the heck to do with it in these strange circumstances.

That would be it. Bank deposits can be a potential problem for institutional holders because of default and counter party risk.