JPMorgan launches global real assets fund

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Clients’ demanded greater exposure to alternatives. JPM responded.

JPMorgan will launch the JPMorgan Real Assets Investment Trust on September 23.

According to a press release, the Trust gives investors access to alternative assets like infrastructure, real estate, and transportation sectors.

The company further explained that JPMorgan Global Core Real Assets (JARA) would “invest in six institutional funds run by JP Morgan’s Alternative Solutions Group that have previously been unavailable to retail investors in the UK.”

Initially sized at £100 million, the fund will charge a management fee of 0.98% at launch.

Net of fees, JPMorgan expects the fund to generate returns in the range of 7 to 9% annually.

Clients looking for alternatives exposure

“We have a big alternatives business globally, and we have, for some time, had clients asking us could we do something in this space so we have known for quite some time there is demand for a global real assets fund,” said JPM’s head of investment trusts, Simon Crinage.

JPMorgan has seen demand for access to alternative assets in recent years. In January, the firm released its first Global Alternatives Outlook to project 12- to 18-month horizons for various alternative asset classes.

JPMorgan Real Assets Investment Trust

The firm called the investment trust an optimum vehicle due it the fact that its assets would be long term in nature.

Assets will include renewable energy assets. Also, the Trust includes residential, retail and industrial real estate; transportation and logistics assets; and the shares of real estate investment trusts.

This is JPMorgan’s second attempt at tapping into the alternative investment trusts. In 2018, the company launched the JPMorgan Multi Assets Trust (MATE).

However, it has been a difficult start for the £87 million fund. As of August 7, MATE shares trade at a 9.8% discount below NAV.

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