JPMorgan American Ord
Why is this fund on our radar?
JPMorgan American (JAM) gives investors core exposure to the US stock market. The portfolio is managed by separate growth and value teams: the growth managers focus on companies expected to grow faster than the wider market, while the value managers look for companies they believe are undervalued. This structure helps ensure that the portfolio benefits from diversification in investment style. JAM also includes a modest allocation to smaller companies, giving investors exposure across the full US equity market.
In general, JAM’s sector mix is not markedly different from the S&P 500 Index, with the managers’ stock selection expected to drive outperformance. In fact, the strategy is high conviction, typically holding only c. 40 stocks. The managers also have the flexibility to tilt the portfolio toward either the growth or value factor, depending on their outlook, which can help support outperformance.
JAM earned its place on our list thanks to its outperformance of the S&P 500 index since adopting its current investment policy in 2019. This is an impressive achievement, as very few active funds have done so. Importantly, this outperformance has been achieved without experiencing bigger ups and downs than the market and with similar sensitivity to overall market movements.
Skip to Our VerdictPerformance
JAM’s portfolio generally does not dramatically depart from the S&P 500 Index in terms of sector allocation. The main difference lies in the individual stocks the managers select and size, with stock selection (rather than sector allocation) expected to drive outperformance. This approach has worked well, with JAM outperforming the S&P 500 Index (represented by an ETF in the chart below) since the introduction of its current investment policy in 2019. We think this is an impressive feat, given that it is a notoriously difficult benchmark to beat. In addition, JAM’s performance has generally moved in line with the broader market, showing similar sensitivity to market ups and downs. As a result, the trust has delivered stronger returns without taking on noticeably higher risk than the S&P 500 Index.
performance
Past performance is not a reliable indicator of future results
It’s also worth noting that JAM combines two different investment styles. Half of the stocks in the portfolio are selected by managers focussing on growth names - companies expected to grow faster than the broader market - and the other half by managers focussing on value stocks - companies they believe are underestimated by the market. That said, JAM’s best periods of outperformance have tended to happen when growth stocks were leading the market. This includes 2023, for example, a year dominated by the growth factor amid investors’ enthusiasm for developments in artificial intelligence. In that year, holdings such as NVIDIA, AMD, and Palo Alto Networks contributed the most to JAM’s outperformance of the S&P 500 Index.
By contrast, when value stocks have been dominant, JAM’s performance has generally been in line with, or slightly below, the S&P 500 Index. This was the case in 2022, when higher inflation and rising interest rates favoured companies in sectors typically associated with the value factor, such as energy and financials. Nonetheless, holdings such as oil company ConocoPhillips helped the trust remain relatively close to the benchmark that year. As such, we believe JAM’s blended approach - with the flexibility to tilt the portfolio toward either factor - is a key strength, as it could help the trust deliver consistent returns and avoid the sharp swings that more style-specific strategies may experience when their investment factor is out of favour.
Portfolio
JAM aims to provide core exposure to US equities, offering the best ideas from both value and growth managers, with the portfolio managed as one. While the growth and value teamsthey take different approaches to investing, both value and growth managers focus on high-quality businesses, which are companies with strong finances and consistent profits. As such, they avoid speculative or troubled firms with uncertain futures, which helps manage risk and reduce large fluctuations in the portfolio’s value. Generally, the portfolio doesn’t significantly differ from the S&P 500 Index in terms of sector exposure, but it holds far fewer stocks (c. 40). This means that performance is driven mainly by stock selection rather than big sector bets. The bar chart below shows JAM’s sector allocation as of the end of October 2025, along with its overweight or underweight positions relative to the S&P 500 Index.
sector exposure
Source: JPMorgan Asset Management
JAM also includes an allocation to smaller companies, giving investors broad exposure across the full spectrum of the US equity market. Smaller companies can offer strong growth potential and/or the opportunity to uncover mispriced investments. At the same time, the allocation to these smaller companies is modest, which helps limit the risks often associated with them, such as higher volatility and lower liquidity (i.e. the difficulty to sell or buy an asset).
Our Verdict
The US equity market is the largest in the world, offering a wide range of investment opportunities. Historically, it has been one of the best-performing markets, often delivering strong earnings growth and leading the way in technological innovation. In our view, JAM provides a compelling core exposure for this market by focussing on the best ideas from both growth- and value-oriented managers. This means JAM could capture market gains regardless of which investment factor is in favour.
With its broad coverage, we believe JAM could serve as a standalone vehicle for gaining exposure to US equities. The flexibility to tilt the portfolio toward either growth or value may help generate additional returns over time, while the managers’ high-conviction stock selection provides the potential to outperform if their choices prove successful. It’s also worth noting that the managers are supported by a large team of experienced research analysts who specialise in different sectors. This strong backing could help the team apply their strategy consistently and repeat their success over time.
Furthermore, as an investment trust, JAM has the option to use gearing, or debt, which can amplify both gains and losses. Finally, investment trusts can trade at a discount or a premium to their net asset value. As a result, JAM’s share price may not always reflect the value of its underlying investments - something that can create opportunities for investors but may also be uncomfortable to some.
Key Risks
- May lag its benchmark in strongly stylistic markets
- The management team has seen numerous changes in 2024, although the strategy has remained unchanged
- Premium/discount mechanism of investment trusts may be uncomfortable for some investors
