JPMorgan Asset Management launches total return Life funds

JPMorgan Asset Management (‘JPMAM’) has announced the launch of the JPM Life Capital Preservation Fund and the JPM Life Capital Appreciation Fund (‘the Funds’). These are long-only funds that aim to deliver a positive return over a target time horizon – made possible by having the flexibility to invest across different asset classes, the fundsmay be able to move into equities when stock markets are set to rise. However, inperiods of market weakness or decline, they may be able to mitigate loss by movinginto lower-risk assets such as bonds or cash. Rather than measuring performanceagainst a stock market benchmark, total return funds look to outperform a cashbenchmark, such as a 1 Month GBP LIBOR. The funds will be managed by the JPMAM Global Multi-Asset Group, headed by Neill Nuttall.

Peter Ball, Head of UK Institutional Business for JPMorgan Asset Management said, “The launch of these funds follows detailed market research which has shown that there is significant demand for this type of product. JPMAM has a highly commendable proven track record in managing total return products for the retail investor, and I am delighted that we will be able to offer DC scheme members access to this range of funds.”

Ball continues, “The JPM Life Capital Appreciation Fund also offers an ideal alternative for defined benefit plans that want a more dynamic alternative to traditional products.”

Fund facts

JPM Life Capital Preservation Fund

Invests in: Equities, bonds, derivatives, convertibles and cash

Target return: LIBOR + 3% p.a. (net of fees) over 3 years

JPM Life Capital Preservation Fund is aimed at DC scheme members, such as members who are looking for a lower risk investment while still achieving an attractive return. The fund looks to deliver 3% above bank base rates (as measured by 1 Month GBP LIBOR) while minimising the potential for losses.

JPM Life Capital Appreciation Fund summary:

Invests in: Equities, bonds, derivatives, convertibles and cash

Target return: LIBOR + 5% p.a. (net of fees) over 5 years

JPM Life Capital Appreciation Fund has a similar investment approach to JPM Life Capital Preservation Fund. However, it has different investment limits to increase its potential for capital growth. Up to 80% of the portfolio can be held in equities to allow the fund to participate more fully in stock market rallies. Conversely, up to 90% of the portfolio can be held in bonds and cash when the fund needs to take a more defensive position.