J.P. Morgan Asset Management has launched a new multi-asset income fund, with a target gross yield of one-month Libor +2.5% over a five-year cycle.
The portfolio comprises a diversified basket of global high-yielding securities, including equities, Reits and fixed income - such as investment grade, emerging market debt, high-yield corporates and convertible bonds.
Run by US-based managers Michael Schoenhaut and Michael Fredericks, the Ucits III fund will mirror the JPM Global Income Sicav, which came to market last December and is currently up over 12% since inception, excluding yield.
JPM Multi-Asset Income, which has been seeded with £10m, distributes income quarterly and will sit in the IMA Specialist sector.
Jasper Berens, J.P.Morgan's head of UK retail sales, says despite many of the underlying asset classes being hit by the market downturn last year, now is an opportune time to be utilising them for income.
With a yield of 7%-8% expected under the current conditions, Berens says it translates to approximately 6% over 3-month Libor.
"This fund offers a competitive yield, seeking income opportunities globally while offering diversity across asset classes. This enables the managers to take advantage of asset classes as and when they feel is appropriate," Berens says.
"This is absolutely the right fund to launch, particularly in this economic environment, where asset allocation decisions are crucial yet understandably daunting for the end investor.
"We do not believe there are any other multi-asset income funds out there. Compared to multi-manager vehicles, multi-asset funds are a cost-effective way to access income without making asset allocation decisions."
Minimum investment is £1,000, with an initial charge of 4.25% and an AMC of 1.43%.
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