JPMAM launches product aimed at smaller pension schemes
UK - JP Morgan Asset Management (JPMAM) has launched a segregated account aimed at making alternative investments more accessible to smaller and medium-sized pension funds.
Peter Ball, the company’s head of institutional business, said many alternative asset classes had high investment thresholds, limiting how far smaller funds could emulate the investment strategy of larger ones.
He cited diversified growth funds as one of the ways in which smaller pension funds were able to shore up their returns with the help of a 60% exposure to alternatives, although these often came through real estate investment trusts (REITs).
The alternatives portfolio product JPMAM is now offering steps away from REITs, allowing investors to put their money straight into a specific project, as well as offering access to infrastructure products and hedge funds.
Its investment structure breaks down as follows: 30% will be invested into hedge fund solutions, 25%in infrastructure and 20% real estate.
Additionally, 10% will be invested into private equity and the remaining 15% into areas including global convertibles, emerging market debt, bond yields and commodities.
Pension funds are asked to invest £10m, but it is unknown what investment fees will be charged.