interactive investor adds a new investment fund to its rated list.
interactive investor, the UK’s second-largest investment platform for private investors, has added the JPM UK Equity Core Fund to the Super 60 rated list as a Core UK Equity option, following review and discussion with Morningstar. This will take the spot vacated by Ninety One UK Alpha, which was removed earlier this year.
interactive investor’s rated products are run in partnership with Morningstar, and led by ii’s Head of Funds Research - Dzmitry Lipski, within a framework of collaboration and mutual challenge. Lipski ensures Morningstar follows ii’s processes and in-house methodology.
The fund has been added to the Super 60’s UK Equities category as a ‘Core’ option. It aims to provide consistent returns moderately ahead of the FTSE All-Share Index by following a structured and risk-controlled approach. It has an ongoing charge of 0.4%.
The fund is benchmark aware, meaning that it broadly holds the same shares as the index. However, in an attempt to outperform it takes slight overweight positions on shares and sectors that are viewed as having the highest potential to outperform. At the same time, it will own slightly less in shares and sectors that have the lowest potential to outperform. By their nature, funds that are benchmark aware tend to be diversified.
The fund is managed as a core UK equity offering, with deviations from the FTSE All-Share Index closely monitored, and should not therefore be expected to produce high levels of outperformance.
Dzmitry Lipski, Head of Funds Research, interactive investor, says: “An established quantitative (mathematical) model forms the core of the stock selection approach, with various factors used to identify stocks with attractive quality, value and/or momentum characteristics.
“The output from the model is assessed and potentially amended by the four-strong management team, drawing on the research of the well-resourced JPMorgan International Equity Group.
“The process may find market inflection points difficult to navigate, but has shown an ability to produce consistent excess returns over time, particularly when all three of its broad alpha factors have been favoured by the market, such as in 2013 and 2015.”
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