Fund to watch: JPMorgan Europe Dynamic Ex UK

JPMorgan Europe Dynamic Ex UK has been the standout performer in the IMA Europe excluding UK sector over the past three years, with an impressive return of 91.9%, according to Morningstar figures to 7 September 2014.

It aims to maximise long- term capital growth by investing primarily in continental European equities and has a best ideas approach, which backs attractively valued, high-quality stocks with positive momentum.

In recent weeks, the biggest positive contributor to relative returns has been stock selection in capital goods and an underweight exposure to banks. Negative contributors, meanwhile, included stock selection in materials, retailing, pharmaceuticals and biotechnology.

The top 10 largest holdings, which combined account for 20.6% of assets under management, include some of the largest and most internationally recognised names in the corporate world, such as Novartis, BMW, Nestle, Telefonica and Total.

On a sector level, consumer goods account for 22.7% of assets, followed by 16.6% in financials, 13.2% in basic materials, 11.9% in industrials and 10.1% in healthcare. Other areas represented included oil and gas, utilities and consumer services.

Meanwhile, France has the largest share of the geographical breakdown with 20.6%, followed by Germany with 16.8% and Switzerland with 11.5%. There is also exposure to a further 12 countries, including Norway, Greece, Italy and Denmark.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.