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JPM turns to absolute return

The JPM Global Equity Absolute Alpha Fund is JPMorgan Asset Management’s first long/short global equity fund in the absolute return sector.

The Ucits III compliant fund aims to beat the one-month LIbor by 3 to 5 per cent over rolling 12-month periods, although this is not guaranteed. It will take long positions in global equities and use synthetic shorting to enable the portfolio to generate returns in falling markets. Synthetic shorting where managers create short positions using derivatives because shorting stocks directly is not allowed under the Ucits III rules.

The fund is managed by JPMorgan Asset Management’s global equities team led by managing director Gary Clarke. Clarke joined the firm from Schroders last year, where he was head of European equities, and has also worked as a senior portfolio manager for Gartmore and HSBC.

JPMorgan Asset Management says investors are looking at absolute return funds to provide steady returns with lower volatility than equities. However, in their quest for low volatility, many absolute return funds have disappointed in performance terms so JPMorgan will need its long and short positions to be spot on.

The absolute return sector comprises funds that focus on different regions and asset classes, with varying degrees of success. Some investors who are looking for an absolute return equity fund may prefer multi-asset funds for their diversity, while others may opt for UK focused absolute return equity funds from Odey and BlackRock.


Law body wants Dilnot in social care bill

The Law Commission is calling on the Government to bring th Dilnot commission’s proposals into statute via its proposed adult social care bill, with any specific limits introduced via secondary legislation. The Government will respond in the spring to the Dilnot report’s proposals. In May, the Law Commission proposed a new adult social care bill […]


FSA delays cap ad requirements by two years

The FSA has deferred the introduction of new capital rules for personal investment firms for two years to allow firms more time to prepare. The rules mean all IFAs will have to hold capital worth at least three months of their annual fixed expenditure, with a minimum of £20,000. Firms were required to hold a […]


IFA warning after term renewal deal withdrawn

An adviser has warned IFAs to beware of offering renewable term policies after a client’s policy was sold and the renewable option withdrawn. King & Co Financial Services arranged for a client to take out a renewable 10-year term policy with Zurich which was due to be renewed on August 1. On contacting Zurich last […]


Labour slam Govt over public sector pension negotiations

Labour have slammed the Government for announcing in the press its plans for increasing contributions to public sector pension schemes while negotiations with unions are still going on. Despite the fact the broad parameters of the today’s proposals were flagged up by the Treasury last week, Shadow Treasury chief secretary Angela Eagle says the Government […]

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]


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