JPM Fund Manager

Update from the UK Equity desk: Challenger banks

In this bite-size UK equity update, Georgina Brittain, fund manager for the JPM UK Smaller Companies Fund, explores why UK challenger banks are looking more attractive today than ever.

Go to the profile of Georgina Brittain
Jun 09, 2016
0
0

Challenger banks are small banks that are set up with the intention of competing for business with larger, more traditional banks. They have competitive advantages in the buy-to-let and small- and medium-sized enterprise space, where they are more nimble decision makers than their larger peers.

The UK has a robust challenger banking sector, spanning both retail and business lenders, and the outlook for the sector continues to strengthen as stocks continue to rebound from the early-2016 economic slowdown scare, while their price-to-book valuations remain very low relative to the returns they are generating.

We retain conviction in Aldermore, Shawbrook and OneSavings Bank in particular, as all three are continuing to produce strong results and are delivering on expectations. These three newer and leaner challenger bank entrants are also well equipped to serve the small- and medium-sized businesses that big banks are turning away.

Georgina Brittain is portfolio manager of the JPM UK Smaller Companies Fund.

UK Advisers | UK Asset Managers


For Professional Clients only – not for retail use or distribution. Please be aware that this material is for information purposes only. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material. The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority Registered in England No: 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP. 0903c02a814195f9

Go to the profile of Georgina Brittain

Georgina Brittain

Fund Manager, JPM UK Smaller Companies Fund and the JPMorgan Smaller Companies JPMorgan Mid Cap Investment Trusts, J.P. Morgan Asset Management

Georgina Brittain is portfolio manager of the JPM UK Smaller Companies Fund and the JPMorgan Smaller Companies JPMorgan Mid Cap Investment Trusts within J.P. Morgan Asset Management's UK Equity team.

No comments yet.