JPM launches global equity absolute alpha fund

JP Morgan Asset Management has launched a global equity absolute alpha fund as its first global equities long/short Oeic in the absolute return sector.

The global Ucits III long/short fund will be managed by Gary Clarke and will look to beat the Libor one month index by 3 to 5 per cent over a 12-month period.

The fund will have a 1.25 per cent annual management charge as well as 10 per cent performance fee. The fund will sit in the absolute return sector. JPM launched the highbridge statistical market neutral Oeic into the absolute return sector last year.

Clarke joined JPM last year and was previously the head of the European team at Schroders. Clarke also manages the £181m global fund.

JPM head of UK retail sales Jasper Berens says: “I think the media coverage of absolute return funds has been incorrect and that they will have a big future within people’s portfolios. We think it will continue to grow and that a product of this ilk will gain traction in the IFA market.

“There is little doubt that many investors like to compare their investment returns with what they could have received had they left the money in cash and funds with a cash benchmark provide the solution to this.  We know that investor demand for outcome orientated funds is strong and that as a strategy, in the right hands, it can and does deliver. Through the launch of the JPM Global equity absolute alpha Fund, J.P. Morgan Asset Management will inject its proven expertise and insight into the sector and we wholeheartedly believe it will deliver on its target return.