JP Morgan launches global absolute return fund

JP Morgan Asset Management (JPMAM) has launched a global equity absolute return fund to meet what it said was rising investor demand for products that can be benchmarked against cash.

The JPM Global Equity Absolute Alpha fund, which launched today and will be managed by ex-Schroders manager Gary Clarke, is a UCITS III portfolio going long and short of global equities.

Clarke, who already runs the group's £181m JPM Global fund, joined JP Morgan last year from Schroders where he was head of European equities.

He is also working alongside Peter Kirkman on the group's Global Consumer Trends fund.

Jasper Berens, head of UK retail, said: "Investors are constantly asking us how funds have done against cash, as they do not want nasty surprises. That is absolute return investing, and we believe that will become a core part of the market."

The fund, the first long/short equity fund in JP Morgan's onshore Oeic range, is targeting a return of 3-5% above one-month Libor on an annual basis.

It will have an AMC of 1.25% and a performance fee of 10%. Minimum investment is £1,000 lump sum or £100 a month.

Berens added: "The industry has been caustic on fees so we have gone for a 1.25% AMC, rather than the usual 1.5%."