InvestmentsMar 3 2015

JPMorgan to target equities and bonds with launch

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JPMorgan to target equities and bonds with launch

JPMorgan Asset Management’s Anthony Vallee will be able to select equities or bonds from companies which fit the bill for his upcoming fund launch.

The group said Mr Vallee, who is the global head of convertible bonds and capital structure funds, would run the Global Capital Structure Opportunities Sicav, which will be based in Luxembourg.

The manager, who will run the fund with Robin Dunmall and Natalia Bucci, will select which companies to invest in and then decide whether their equities, bonds or convertible bonds are best value.

Up to 30 per cent of the fund is likely ot be in equities, 10-15 per cent in convertible bonds and 40-80 per cent in corporate bonds. The manager can also have up to 30 per cent in cash if he is feeling bearish.

Its composite benchmark is 80 per cent the Barclays Global Aggregate Corporate Index (total return gross), 20 per cent to MSCI World Index (total return net), both hedged to euro. The fund aims to outperform this benchmark by 2 per cent.

Mr Vallee is responsible for $5.6bn in assets and also runs the offshore Global Convertible Sicav and the Global Convertible Income investment trust.

“With this fund, we wanted to bring together our deep fundamental knowledge of companies to pick the best opportunities, agnostic of which instrument in the capital structure space, in order to offer strong total returns with a cautious risk profile,” the group said.

“The result is a diversified, high-conviction portfolio.”