JP Morgan Asset Management has rolled out a new fund in the UK and Jersey aimed at delivering returns above the rate of inflation.

The JPM Diversified Real Return Fund is based on a strategy launched by the firm’s global multi-asset group in the US last year; it blends inflation-linked bonds with real assets and inflation-sensitive equities to produce a portfolio that can outperform inflation and give a positive return, the firm said. The fund’s official benchmark is the 1-10 Year Barclays Capital Index-Linked Gilts Index and it aims to achieve an annual return before fees of 3 per cent above the UK retail price index, with 40 to 60 per cent the volatility of equities.

“The popularity of index-linked government bonds in the past few years of above-target inflation has driven yields down to extremely low levels,” said John Stainsby, head of UK institutional at JP Morgan Asset Management. “The JPM Diversified Real Return Fund has been designed for investors who want to diversify their exposure beyond index-linked bonds to other inflation-sensitive assets.”