JPMorgan launching Global Core Real Assets fund – A prospectus has been published this morning in connection with the launch of a new investment trust – JPMorgan Global Core Real Assets – if that means very little to you – they say the fund will invest in the likes of:
- Infrastructure: long-term, core infrastructure assets diversified across sectors (i.e. renewables, regulated utilities, contracted power) and geographies (i.e. OECD markets);
- Real Estate: diversified properties across the residential, retail, industrial, and office sectors in major US and Asia Pacific markets;
- Transportation: a diversified mix of assets across aviation, maritime, rail and energy logistics; and
- Listed Real Assets: investing in publicly traded securities with exposure to real assets, including the common and preferred equity, convertibles and debt of real estate investment trusts (REITs).
The trust aims to generate returns of 7 – 9% a year after fees, when it is fully invested. There’ll be a quarterly target initial dividend yield of 2 – 3% on the issue price for the first 12 months, increasing to 4 – 6% a year.
Part of the idea is that returns will be less volatile than those of equity markets (less than 2/3). The fund fee will be just 0.05% but the portfolio will be invested in JPM funds that charge fees. They reckon that works out to management fees of 0.98% – falling to 0.87% is assets exceed £1bn.
[As always, we wish JPM every success with the launch. It is entering a crowded market however – the flexible investment sector already has 19 members including JPMorgan Multi Asset, which has a market cap of just £83m and trades at an 8% discount.]
JARA : JPMorgan launching Global Core Real Assets fund