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JPMAM launches Global Equity Absolute Alpha Fund

6th July 2011 Print

J.P. Morgan Asset Management announces the launch of the JPM Global Equity Absolute Alpha Fund. The fund is launched due to rising investor demand for products that can be benchmarked against cash, without sacrificing the opportunity for higher returns.

The JPM Global Equity Absolute Alpha Fund, which is UCITS III compliant, seeks to provide absolute returns by beating LIBOR over rolling 12 month periods and offers investors the chance to capitalise on investment opportunities in both rising and falling markets, anywhere in the world. It will target an absolute return of cash plus 3%-5%, mainly through taking both long and short positions in global equities and equity linked securities.

The new fund will be managed by the global equities team in London, the same team responsible for the JPM Natural Resources Fund and the JPM Global Consumer Trends Fund. It will be led by fund manager Gary Clarke who joined J.P. Morgan Asset Management from Schroders in 2010, where he was Head of European Equities. Gary brings with him a wealth of expertise in working with higher alpha mandates having also previously managed the 'aggressive alpha' portfolios in the European Equity team at Gartmore. He will seek to capitalise and build on J.P. Morgan Asset Management's experience in running total return strategies in Europe over the past 5 years. 

Jasper Berens, Head of UK Intermediary Sales at J.P. Morgan Asset Management said: "There is little doubt that many investors like to compare their investment returns with what they could have received had they left the money in cash and funds with a cash benchmark provide the solution to this.  We know that investor demand for outcome orientated funds is strong and that as a strategy, in the right hands, it can and does deliver. Through the launch of the JPM Global Equity Absolute Alpha Fund, J.P. Morgan Asset Management will inject its proven expertise and insight into the sector and we wholeheartedly believe it will deliver on its target return. As one of the largest alternative fund managers in the world, we have the management and operational skills to do this well and to deliver the consistent returns that investors look for."

Berens concluded: "I would urge investors that are looking for outcome-orientated investments to consider this fund. As equity markets remain volatile many investors are looking for steady returns with a reduced level of volatility. The average volatility of the absolute return sector of the last 5 years has proven to be low compared to many other sectors and the objectives of this fund, in particular, are strong. The JPM Global Equity Absolute Alpha Fund is actively managed with an excellent investment team and a strong, robust and long standing investment process."