The JP Morgan Multi-Asset Trust, launched on Wednesday, is the asset manager’s first foray into the multi-asset investment trust space.
It claims to offer shareholders income and capital growth from a strategy investing in six asset classes across more than 40 geographies.
Initial allocation is to developed global equities (59%), emerging market debt (8%), high-yield bonds (12%), global credit (3%) and infrastructure (10%).
Lead portfolio managers are Talib Sheikh, Katy Thorneycroft and Gareth Witcomb, who all work within JPMAM’s Multi-Asset Solutions team.
The trust will target a long-term total return of 6% per annum (net of fees) including an initial annual dividend yield of 4% paid quarterly as part of the total return to its shareholders.
It has tiered management fee of 0.65% of net asset value up to £250m and 0.60% thereafter. The trust will not carry a performance fee.
Sheikh said: “We know UK investors are feeling the income squeeze, so we recommend widening the net. We believe looking globally should be a priority for income seekers in order to achieve the best risk-adjusted returns as well as to maintain the flexibility and diversification needed to navigate the changing macro environment.”
Rollover option
JPMAM is offering existing investors in its split capital JP Morgan Income & Capital Trust, due to wind-up on 28 February, the option to move across to the new vehicle.
Simon Crinage, head of investment trusts at JPMAM, said: “We are excited to have lined up this new investment proposition as the rollover option for existing shareholders of JP Morgan Income & Capital Trust. The initial response from our test marketing for the new trust has been very positive.”
Laurence Magnus is chairman of the new trust’s board which also includes Sian Hansen, Richard Hills, Sarah MacAulay and James West.
The offer for subscription and placing for the trust opened on Wednesday. The offer closes on 26 February and the placing closes on 27 February. Winterflood Investment Trusts is acting as sponsor.
Ordinary shares have an issue price of 100p each with a minimum subscription amount of £1,000. JPMAM is targeting a raise in excess of £150m.
