JP Morgan Partners With Morningstar On Alternative Strategy Launch

May 31 2017 | 9:14pm ET

JP Morgan has reportedly teamed with Morningstar to launch a new strategy that will provide investors with access to a synthetic basket of liquid alternative funds.

The new strategy, named the JP Morgan Morningstar Alternative Strategy, will rely on Morningstar’s investment management team to select UCITS-compliant alternative investment funds within Morningstar’s alternative categories of fixed income, multi-asset, and equity. 

Allocations will be made quarterly according to weightings that will be reviewed on an ongoing basis, according to an article in Citywire. At launch, the weightings are 40% equities, 45% multi-asset and 15% fixed income.

JP Morgan, meanwhile, will be the strategy’s sponsor and calculation agent, and provide non-U.S. retail and institutional investors with access to the strategy, the article said.

“Investor appetite for alternatives is rapidly increasing, especially in the current unpredictable market environment,” said Nicolas Robin, JP Morgan’s head of equity derivatives specialist structuring, to Citywire. “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.

“The J.P. Morgan Morningstar Alternative Strategy presents an opportunity for investors concerned with capital security and medium-term returns to diversify their approach,” he added. “Morningstar’s expertise as strategy allocator combined with JP Morgan’s ability to provide broad structured solutions for retail and institutional investors, creates an exciting new partnership in the derivatives market.”

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