JP Morgan Asset Management has launched a Ucits strategy in its Sicav range, JP Morgan Funds – Multi-Manager Alternatives Fund.
The Multi-Manager Alternatives fund draws on multiple hedge fund managers selected by JP Morgan Alternative Asset Management in order to deliver returns with lower sensitivity to traditional equity and bond markets.
The Ucits vehicle will provide daily liquidity, transparency and competitive fees, JP Morgan said.
The fund will allocate to underlying hedge fund sub strategies, based on their relative attractiveness and will tap into a bottom-up fund manager selection process and will initially include 8 to 12 underlying managers.
It will target long term capital appreciation with low volatility and low sensitivity to traditional equity and fixed income markets, the asset manager also said.
The fund will be managed by Paul Zummo, CIO at JP Morgan Alternative Asset Management. Co-managing the fund will be Randy Wachtel and Christopher Marshall, who bring a combined 35 years of experience and specialist expertise from across the hedge fund space.
“Traditional investments are increasingly challenged by continued low interest rates and higher volatility. In search of diversification, many investors are looking for less correlated sources of return.
“Alternative investments such as hedge funds can help guard against equity market volatility and rising interest rates, but many investors haven’t been inclined to this asset class, whether due to transparency, liquidity, access or costs.
“This fund provides the benefits of diversified exposure to hedge fund managers at lower costs, with no performance fees and with a daily liquidity profile,” said Massimo Greco, head of European Funds, JP Morgan Asset Management.