The firm says the fund was created in response to requests by consultants for a pooled global strategy that could reduce overall portfolio volatility by providing long-term exposure to multiple asset classes.
The fund has a diversified portfolio of assets including global equities, private equity, commodities, absolute return strategies, and property. In a single fund, investors gain exposure to six asset classes chosen specifically for their high-return potential and low correlation.
The structure of the fund offers benefits to both DB and DC schemes, for DB schemes it is a simple means of gaining immediate exposure to a wide range of alpha sources – including more esoteric asset classes that smaller schemes may not have the scale to access directly, and without the need for multiple investment mandates.
The firm says it is also an efficient way for DC scheme members who want effective diversification, but who would prefer a strategy that has greater growth potential than a conventional balanced DC fund.
Simon Chinnery, vice-president and client adviser in the UK Institutional Business, at JPMorgan Asset Management said: “Traditionally, this type of investment solution has only been available to the very largest of pension funds. Now, as part of our pooled fund range we are able to provide, to a much broader client base, a sophisticated product with high return potential from a mix of lowly correlated assets.”