JP Morgan Asset Management has seen its largest investment trust mandate win, with the £260m BlueCrest All Blue Fund Investment Trust transferring to the asset manager.
Highbridge Capital, the alternatives division of JP Morgan, will take on the assets with the funds going into the Highbridge Multi-Strategy fund, a hedge fund of funds.
“Investment companies have come into their own due to their closed-end structure in terms of investing in alternative assets, given the often illiquid characteristics of these assets. Alternative assets tend to exhibit low correlation to equity and bond markets and can often distribute returns in the form of attractive levels of dividend income,” says Simon Crinage, head of JPMAM’s investment trust business.
BlueCrest announced in December that it planned to close the investment trust and return capital to investors. However, after consultation with shareholders it will now transfer the money to JP Morgan. Investors will be given the chance to cash out of the fund, for all or part of their holdings.
The move takes JP Morgan Asset Management’s total investment trust assets to £9bn across 23 trusts.