JPMorgan Asset Management has cut the charges on its Life Diversified Growth Fund (DGF) and introduced greater flexibility to the investment strategy.
Annual fund charges have been reduced by nearly 50%, from 75 basis points (bps) to 40 bps, while maintaining an active management approach.
Having historically targeted equity-like returns, the fund will look to deliver cash plus 4% over a market cycle, with volatility of 6% to 10%. It will aim to achieve this by investing in active strategies across a broad range of assets and actively shifting the portfolio to reflect the investment team's latest asset allocation views.
The firm said these changes are to closer align the fund with what today's defined contribution (DC) and defined benefit (DB) investors need from their pensions, and to maximise competitiveness relative to both active and passive offerings.
However, the fund's existing investment process will remain the same.
To achieve lower charges while maintain active management, the fund will incorporate the firm's Research Enhanced Index (REI) suite of strategies for its underlying equities exposure.
These strategies seek to deliver consistent excess returns at low active risk by managing an index-like portfolio designed to source the majority of alpha from stock selection.
Head of UK institutional Paul Farrell said the fund offers both DC and DB schemes another tool in the arsenal for improving investment outcomes.
"The changes not only make the fund highly competitive compared to active investment options, but also make it an attractively valued proposition compared to passive investing," he added.
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