JPMorgan Asset Management launches progressive Multi-strategy fund

JPMorgan Asset Management (JPMAM) today announced the launch of the JPMorgan Progressive Multi-Strategy Fund Ltd, a new leading edge financial product aimed at delivering equity-like returns with much lower volatility over the medium to long term.

This new multi-strategy fund differs from most traditional funds or fund of funds, which require choices to be made about what percentage of a portfolio is invested in each asset class, by eliminating asset allocation decisions. The portfolio invests in a variety of asset classes including property, hedge funds, equities and fixed income allowing maximum diversification within one fund but with potential for equity-like returns.

Asset allocation decisions are eliminated by recognising the risk/reward expectations for each different asset class and scaling these up so that all allocations deliver the same return or risk profile for the portfolio. When asset classes are combined in this way the portfolio can be expected to deliver equity-type returns without a commensurate level of volatility. The fund will invest in JPMorgan Chase’s ‘best of breed’ products and has a competitive single fee structure with no double charging, which significantly differentiates it from many funds of funds or hedge fund products.

The fund is a new closed-end investment company domiciled in Guernsey, with an unlimited life and will be launched next month. Shore Capital has been appointed nominated adviser and broker to the company which is to be listed on AIM and CISX.

The fund will be managed by a senior investment team including JPMAM’s European Equities CIO, Chris Complin.

Chris Complin, European Equities, CIO said: “Having seen the equity markets fall so strongly between March 2000 and April 2003, investors have sought to minimise their downside risk by investing in products such as structured products and hedge funds. The JPMorgan Progressive Multi-Strategy Fund offers a more attractive proposition with much broader appeal, and a single, transparent charging structure. The fund has access to JPMorgan Chase’s unparalleled array of products, offering maximum diversification and equity-like returns for a much lower level of risk. This is exactly the type of solution that CIOs are looking for, with all asset allocation decisions removed, making an ideal core holding in a portfolio.”