The JPM Global Equity Absolute Alpha Fund is benchmarked against three-month Libor, aiming to return between 3% and 5% over a rolling 12-month period with a combination of long and short positions.
The fund does levy a performance fee of 10% above three-month Libor, rather than above the targeted 3% to 5% over three-month Libor, although this is offset against a lower annual management charge of 1.25%. It also has fixed expenses of 0.18% per year.
At its purest, the fund can invest 100% in cash and cash equivalents as well as fixed and floating rate debt securities.
It will be run by the same global equities team that already looks after the firm’s Natural Resources and Global Consumer Trends funds, with Clarke as its lead manager. Clarke has the final say on the derivative positions on individual stocks and markets he is able to use, following discussions with and research from the rest of the global equities team.
Clarke joined JP Morgan AM from Schroders in September last year, having left in May, where he was head of European equities as well as manager of Schroders’ ISF European Equity Alpha and ISF Euro Equity funds.
