Question
I've a small holding in JPM UK Dynamic. It's done OK over the years but seems to have gone through a number of managers and I now feel I could improve on it's performance.
Either Artemis or Blackrock UK Special Situations appear to be superior alternatives for a switch. Both seem well regarded by HL, BestInvest, Fidelity, Chelsea etc etc and have similar ratings by Morning Star and OBSR. TrustNet gives the Blackrock manager "alpha" status whilst the Lipper rating slightly favours Atremis. Atremis also has a better TER at 1.56% (Blackrock 1.67%).
Could you suggest any further research I could do to assist in my selection? as both funds seem so evenly matched at present.Answer
The JPM UK Dynamic fund supposedly contains JP Morgan's UK stock market 'best ideas' - performance over the last 5 years suggests their ideas have unfortunately not been very good. As always, that's not to say it won't do well in future, but I think your intention to switch elsewhere is sensible.
As for researching alternatives, you've made a good start by polling the various discount broker 'buy lists' and data from research agencies.
I'd suggest taking a look at the management style of the funds concerned, along with holdings, to better understand the potential risks involved and how they might cope with the challenging economic times that likely lay ahead.
Artemis UK Special Situations, managed by Derek Stuart, has performed well, albeit a bit erratically in recent years. Blackrock UK Special Situations, run by Richard Plackett, has outperformed (the FTSE All Share Index) more consistently, although volatility along the way has been a little higher versus Artemis.
Both funds invest in a mix of company sizes, with around 40% typically invested in larger companies and the balance split between medium and small.
Where they really differ is investment style. Stuart favours companies that offer value for money, for example those tipped for recovery after a difficult period, whereas Plackett prefers 'growth' investing - i.e. companies that have been doing well and look set to continue strong growth.
Despite this, they both share a bias towards the industrials and energy sectors. However, Plackett has a much higher weighting towards financials and hard commodities while Stuart has a greater preference for healthcare and food companies.
In theory value investing should fare better during a downturn while growth does better during the good times, but things are never that simple - as confirmed by a quick look at past performance for both funds.
Nevertheless, I'd probably favour the Artemis fund if you think global economies will struggle over the next few years, otherwise Blackrock looks more enticing.
But as these things are difficult to predict, I'd be inclined to split your money between the two!
I've a small holding in JPM UK Dynamic. It's done OK over the years but seems to have gone through a number of managers and I now feel I could improve on it's performance.
Either Artemis or Blackrock UK Special Situations appear to be superior alternatives for a switch. Both seem well regarded by HL, BestInvest, Fidelity, Chelsea etc etc and have similar ratings by Morning Star and OBSR. TrustNet gives the Blackrock manager "alpha" status whilst the Lipper rating slightly favours Atremis. Atremis also has a better TER at 1.56% (Blackrock 1.67%).
Could you suggest any further research I could do to assist in my selection? as both funds seem so evenly matched at present.Answer
The JPM UK Dynamic fund supposedly contains JP Morgan's UK stock market 'best ideas' - performance over the last 5 years suggests their ideas have unfortunately not been very good. As always, that's not to say it won't do well in future, but I think your intention to switch elsewhere is sensible.
As for researching alternatives, you've made a good start by polling the various discount broker 'buy lists' and data from research agencies.
I'd suggest taking a look at the management style of the funds concerned, along with holdings, to better understand the potential risks involved and how they might cope with the challenging economic times that likely lay ahead.
Artemis UK Special Situations, managed by Derek Stuart, has performed well, albeit a bit erratically in recent years. Blackrock UK Special Situations, run by Richard Plackett, has outperformed (the FTSE All Share Index) more consistently, although volatility along the way has been a little higher versus Artemis.
Both funds invest in a mix of company sizes, with around 40% typically invested in larger companies and the balance split between medium and small.
Where they really differ is investment style. Stuart favours companies that offer value for money, for example those tipped for recovery after a difficult period, whereas Plackett prefers 'growth' investing - i.e. companies that have been doing well and look set to continue strong growth.
Despite this, they both share a bias towards the industrials and energy sectors. However, Plackett has a much higher weighting towards financials and hard commodities while Stuart has a greater preference for healthcare and food companies.
In theory value investing should fare better during a downturn while growth does better during the good times, but things are never that simple - as confirmed by a quick look at past performance for both funds.
Nevertheless, I'd probably favour the Artemis fund if you think global economies will struggle over the next few years, otherwise Blackrock looks more enticing.
But as these things are difficult to predict, I'd be inclined to split your money between the two!
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