View more on these topics

JP Morgan launches diversified real return fund

JP Morgan has launched a diversified real return fund for the firm’s global multi-asset group.

The fund will invest in inflation-linked bonds, real assets, investment grade credit, corporate bonds with inflation overlays and inflation-sensitive equities.

The fund’s benchmark is the 1 to 10 year Barclays Capital index-linked gilts index. It will aim to achieve an annual return, before fees, of 3 per cent in excess of the UK retail prices index, with around 40 to 60 per cent of equity volatility.

At launch, it will offer a retail share class with a minimum investment of £1,000 lump sum or £100 a month. Institutional share classes suitable for pension scheme clients and other institutional investors will be launched over the coming months. The fund has a 1.25 per cent annual management fee.

The team expects the asset mix to be around 65 per cent lower-volatility assets, like index-linked gilts, corporate bonds with inflation overlays and cash alternatives, and 35 per cent higher-volatility assets, like real estate investment trusts, commodities, natural resources equities and infrastructure equities.

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

Recommended

5

MM Leader: Blanket FSCS approach raises concerns

Lawyers acting on behalf of the Financial Services Compensation Scheme sent letters last week to 162 firms who recommended two tranches of Keydata Lifemark products in a bid to reclaim industry costs paid out to investors. The move follows similar letters sent late last year to over 500 firms who advised clients to invest in […]

NewBuy lenders raise rates

Lenders have increased the rates on mortgage products they developed for the Government’s indemnity guarantee scheme just over seven weeks after its launch. Under the NewBuy scheme, which launched in March, lenders offer 95 per cent loan-to-value ratio mortgages on newbuild properties against a mortgage indemnity guarantee funded jointly by builders and the Government up […]

Tomorrow’s world

The US sector seems to be a graveyard for fund managers here in the UK. Given the size and dynamism of the US economy, you might expect a decent number of good quality funds to invest with. Yet it is hard to find managers that have consistently outperformed the market to a significant degree. Indeed, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com