JP Morgan Asset Management will close a multi-asset fund overseen by four of its most senior mixed asset investors after it dropped below the firm’s liquidity threshold, Citywire Selector has learned.
In a shareholder note, JPM AM said the JPM Global Allocation fund had slipped below the $30 million lower limit it uses for funds.
Overseeing the fund are Talib Sheikh and James Elliot, who co-run the giant JPM Global Macro Opportunities fund with Shrenick Shah. This is as well as Jeffrey Geller, who is CIO of multi-asset solutions, and portfolio manager Jonathan Cummings.
In a statement to Citywire Selector, a spokesperson for JPM AM confirmed that the fund would close on July 17 after falling to €28.2 million in assets, which is roughly $31 million but future withdrawals will drop it below the limit.
The spokesperson said: ‘It was felt that it would be in the best interests of shareholders to liquidate the fund given limited growth in assets under management since inception in September 2013.
‘[Also the] limited prospects for attracting new subscriptions and forthcoming redemptions expected to bring assets under management below the $30 million liquidation threshold outlined in the prospectus.’
This marks the second closure for the quartet, with the OEIC-version of the same strategy having been closed after a similar slump in assets earlier this year.
On a three-year basis, the JPM Global Allocation fund returned 14.1% in euro terms to the end of May 2017. This compares to a sector average 9.6% from the Mixed Asset – Flexible sector.