JP Morgan’s structured products division has selected Morningstar as strategy allocator for its new product, the JP Morgan Morningstar Alternative Strategy.
The strategy, which will select Ucits-compliant alternative funds, provides exposure to a synthetic basket of mutual funds.
Morningstar’s investment management team will act as allocator and select the basket of mutual funds underpinning the strategy, adjusting their weights on an ongoing basis and reviewing the mutual funds considered and selected.
JP Morgan, meanwhile, will act as strategy sponsor and calculation agent and will facilitate access to the strategy via a number of structured solutions offered to retail and institutional investors.
The investment bank says that the alternative strategy could be attractive to investors concerned with capital security who are willing to take some risk to achieve investment returns in excess of cash over a medium-term horizon.
Nicolas Robin, JP Morgan’s head of equity derivatives specialist structuring, said: “Investor appetite for alternatives is rapidly increasing, especially in the current unpredictable market environment.
“There has been a dramatic increase in the number of active funds available in this space, making it harder to assess the relative qualities of strategies and manager track records when building a balanced portfolio.”
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