JPMorgan Funds – Europe Equity Plus Fund

Extending the European opportunity set

Investors are once again turning to European equities. However, gaining exposure through a traditional long-only fund can constrain potential returns.

Thanks to its ability to take both long and short positions, the JPMorgan Funds – Europe Equity Plus Fund offers the broadest possible opportunity set, allowing investors to maximise potential returns without increasing their overall exposure to European stock markets.

Benefit from both long and short positions
The challenging European market environment is creating many investment opportunities. However, long-only managers can only fully benefit from active positions in those stocks that they think will perform best. Their scope to profit from stocks that they think will fall in value is constrained by index weightings.

To overcome this constraint, the JPMF – Europe Equity Plus Fund is able to take short positions in stocks that are expected to fall in value, creating a second source of excess returns. 

Fund highlights

  • Enhanced access to Europe's investment potential – the fund can take short positions in stocks we believe will fall in value, with proceeds used to fund additional long positions in stocks we like the most.
  • Low correlation of excess returns – provides a diversified European large-cap solution that can complement existing growth and value style-oriented investments.
  • Better use of its risk budget – combining long and short positions helps to control incidental risks while providing the opportunity to deliver enhanced long-term returns.

VIDEO: Investment strategy. March 2013

Key Facts

  • ISIN: LU0289089384
  • Benchmark: MSCI Europe (Total Return Net)
  • Fund Manager: Michael Barakos / Nicholas Horne
  • Share class launch data: 25 June 2007
  • Share class currency: EUR