JP Morgan's asset management unit has introduced a new global diversified fund that will give investors exposure to equities, corporate bonds, convertibles and cash of individual companies.
JP Morgan Asset Management has launched a new global capital growth fund.
The Global Capital Structure Opportunities Fund will use a bottom-up approach to invest in a range of securities within the capital structure of companies.
The fund will be led by JPAM's global head of convertible bonds and capital structure funds, Antony Vallee, and supported by co-managers Robin Dunmall and Natalia Bucci. Vallee currently oversees $5.6 billion in assets under management and manages the firm's Global Convertibles Income Fund, which became JPAM's largest ever IPO when it launched two years ago, raising £36 million ($209.2 million).
The portfolio will be diversified by geography, sector and company profile and will hold up to 30 per cent in equities, 40 to 80 per cent in corporate bonds, 10 to 50 per cent in convertibles and up to 30 per cent in cash.
It aims for a 2 per cent return over its benchmark combination of the euro-hedged Barclays Global Aggregate Corporate (total return gross) and the MSCI World (total return net) indices, at a ratio of 80 per cent and 20 per cent respectively.
“With this fund, we wanted to bring together our deep fundamental knowledge of companies to pick the best opportunities, agnostic of which instrument in the capital structure space, in order to offer strong total returns with a cautious risk profile,” said Vallee, in a statement. “The result is a diversified, high-conviction portfolio.”
“In the increasingly urgent search for diversification, many investors are looking for asymmetrical risk/return characteristics. This fund delivers that diversification with the flexibility to explore up and down the capital structure, allowing the managers to exploit the relative value within and between companies,” said the firm's head of European funds, Massimo Greco.