JP Morgan Asset Management has launched a Japan Market Neutral Fund. The Luxembourg-domiciled UCITs III fund will use the firm’s established Nippon Neutral Strategy, which has a low correlation with other asset classes and hedge funds.

The fund aims to achieve an absolute positive return in excess of cash entirely through bottom-up stock selections based on valuations.

Net sector and market exposure are managed close to zero to minimise industry and market risks, but the fund has the flexibility to increase or decrease gross exposure to each sector.

The fund, which is benchmarked to the British Bankers’ Association LIBOR JPY Spot Next, is denominated in yen; sterling, euro, US dollar, Swiss franc and Swedish krona hedged share classes are also available.