GLOBAL - J.P.Morgan Asset Management has launched an alternatives portfolio in a bid to help small to medium sized schemes access asset classes including hedge funds, infrastructure and private equity.
Head of UK institutional business Peter Ball (pictured) said existing products - such as diversified growth funds and cash plus offerings - offered small schemes some access to alternatives, they were often liquid investments, which meant they were unable to gain full access to the alternatives used by large plans.
The alternatives portfolio solution will be run as a standard managed account - meaning schemes would have a direct holding in each of a range of alternative asset classes but have these holdings managed by JPMAM under a single management agreement.
The offering has a strategic allocation of about 30% in hedge funds, 25% in infrastructure, 20% in direct real estate and 10% private equity. It will also allocate around 15% to tactical asset classes such as global convertibles, emerging markets debt, high yield, commodities, REITs and emerging markets equity.
Allocations will be overseen by JPMAM global multi-asset group global chief investment officer Neill Nuttall and Americas chief investment officer Jeff Geller.
The alternatives portfolio solution will have a minimum investment of around £10m for a standard managed account - but JPMAM said it would be able to tailor the solution for investments in excess of £50m.
It is understood the average core fee for the solution will be around 1.4% per annum, plus a performance fee on some of the underlying products.
The closure of the BT Pension Scheme (BTPS) to future accrual means 20,000 active members will move to an 'enhanced' defined contribution (DC) scheme, after the company reached a deal with the union.
In this week's Pensions Buzz we want to know what you think of the government's proposals set out in the DB white paper, which include new powers for the regulator.
The pensions watchdog has been through some testing times and is making significant changes to the way it regulates. Speaking to Stephanie Baxter, Mark Boyle takes stock and looks to the future
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.