By David Randall
NEW YORK, May 20 (Reuters) – JP Morgan Chase & Co
shareholders will decide Tuesday whether Jamie Dimon should be
both chairman and chief executive, and investors in funds with
large stakes in the bank have a lot riding on the outcome.
Supporters of the motion to strip Dimon of the chairmanship
say it would improve management oversight and reduce the chances
of debacles such as the $6.2 billion in losses the bank incurred
in last year’s so-called “London Whale” derivatives trades. The
bank will announce the results of a non-binding vote on May 21.
There is concern that the strong-willed Dimon, one of the
most dynamic leaders in the financial industry, may decide to
leave JP Morgan should the vote go against him. That in turn
could hammer the shares and hurt the performances of funds with
5 percent or more of their assets invested in the bank. A
victory by Dimon, who is expected to prevail, may not affect the
shares significantly, analysts said.
Investors in the following funds may want to pay extra
attention. These 10 funds have the largest percentage of their
assets in JP Morgan shares, according to Lipper data. Of course,
many are funds that focus solely on the financial sector. But
investors in some diversified funds may be surprised at their
stake in the company.
Fund name Total Portfolio Fund
Assets percentage annualized
in JPM 5-year
return %
ICON $56.5 8.8 -6.2
Funds: million
Icon
Financial
Fund
Schwab $55.5 8.4 0.3
Financial million
Services
Fund
Oppenheime $1.6 6.4 4.3
r Main billion
Street
Select
Fund
Midas $15 6.2 3.2
Magic million
White Oak $251.1 5.7 7.8
Select million
Growth
Fund
Hennessy $64.8 5.5 6.2
Large Cap million
Financial
Investor
Invesco $973 5.4 5.5
Value million
Opportunit
ies
Schneider $35.9 5.3 -2.7
Value Fund million
TCW $8 million 5.2 -0.2
Concentrat
ed Value
Fund
Oakmark $3.8 5.2 9.5
Select billion
Fund
Source: Lipper, Morningstar data.
