JP Morgan has launched a flexible income fund for managers Andrew Norelli and Matthew Pallai to cater for investors looking for yield.
The $25 million fund will ‘invest opportunistically across multiple debt markets and sectors’ to target risk-adjusted income and an element of capital growth.
Norelli joined JP Morgan in 2012 and is a portfolio manager on the Diversified Solutions team in the US, where he is responsible for developing new products and managing diversified strategies.
Co-manager Pallai joined the company 11 years ago and is currently a manager on the US fixed income team, focusing on multi-sector fixed income products.
The JP Morgan Income fund can invest in debt instruments in any country, including emerging markets and will invest in instruments such as convertible bonds, credit-linked notes and asset-backed securities. The fund can also invest in equities and equity-linked securities.
The fund can have concentrations to certain countries, sectors or debt types, and the fund’s assets will primarily be denominated in US dollars, which will be hedged back to sterling.
The benchmark is the Barclays US Aggregate Index hedged to GBP. For the fund’s A shares there is a minimum investment of £1,000 and no performance fee, although there are fixed expenses of 0.18% per year, a 3% preliminary charge, an annual Authorised Corporate Director fee of 1%, which is currently being taken from capital rather than income.
According to the company, the fund is designed for investors who are seeking income through an active allocation to a wide range of fixed interest products JP Morgan has a number of existing income strategies, including Emerging Market Income, Multi-Asset Income, Global Income and UK Higher Income.