The JPM Global Consumer Trends Fund has had a great start. Since its launch in April 2008 it’s risen 32%. This is an especially decent return compared to other globally invested funds. Most made large losses in 2008 and have struggled to recover – the average returned 0% since April 2008.
The fund’s outperformance is due to its “radically different” objective, says Jeff Prestridge in The Mail on Sunday. Most globally invested funds are conservatively managed with the biggest country holdings determined by stockmarket size. But Peter Kirkman, manager of JPM Global Consumer Trends, takes a different approach. He aims to identify new global consumer trends and then invest in firms he thinks will benefit from them.
Currently, the fund’s top ten holdings reflect the rise of consumerism in the East, including several major firms that are expanding there. Examples include Nestlé, and Vodafone. But Kirkman has also picked up on an ageing global population and invested in drugs company Merck & Co. It is bringing in large revenues as it too continues to move into Eastern markets.
Smaller firms are also bought by the fund if Kirkman believes they will be able to cash in on consumer sentiment. For example, he has invested in China Security & Surveillance Technology, a firm that is doing a roaring trade as demand for security cameras rockets.
Interested investors should buy this fund via a supermarket. Initial charges if you buy direct are 4.25%, with an annual charge of 1.5%. But buy the fund through Hargreaves Lansdown and there is no initial charge, plus the annual fee drops to 1.4%.
Contact: 020-7638 5858.
JPM Global Consumer Trends Fund top ten holdings
| Name of holding | % of assets |
|---|---|
| Nestlé SA | 3.9 |
| China Hongxing Sports | 3.2 |
| Esprit Holdings | 2.9 |
| Kroger Co | 2.9 |
| Wolters-Kluwer NV | 2.9 |
| Walt Disney Co | 2.8 |
| Merck & Co Inc | 2.6 |
| America Movil SAB DE CV | 2.5 |
| Abbott Laboratories | 2.1 |
| Vodafone Group | 2.0 |