The Global Capital Structure Opportunities Fund became active on 19 February and invests across a range of asset classes.
The Luxembourg-domiciled vehicle will select instruments within company capital structures across the equity, bond and convertible bond spectrums, utilising a bottom-up, unconstrained, flexible approach.
It is managed by Antony Vallee, JPMAM’s global head of convertible bonds and capital structure funds, with Robin Dunmall and Natalia Bucci as co-managers.
Global Capital Structure Opportunities Fund is managed by Antony Vallee, global head of convertible bonds and capital structure funds at J.P. Morgan Asset Management. Co-managing the fund are Robin Dunmall and Natalia Bucci
Vallee’s portfolio will have a typical allocation of 0-30% in equities, 10-50% in convertibles, 40-80% in corporate bonds and 0-30% in cash, invested in high-conviction companies of various profiles across a range of regions and sectors.
It will target a return exceeding its benchmark – 80% Barclays Global Aggregate Corporate Index (Total Return Gross) Hedged to EUR and 20% MSCI World Index (Total Return Net) Hedged to EUR – by 2%.
“With this fund, we wanted to pick the best opportunities, agnostic of which instrument in the capital structure space, in order to offer strong total returns with a cautious risk profile,” said Vallee. “The result is a diversified, high-conviction portfolio.”
Massimo Greco, head of European funds, added: “In the increasingly urgent search for diversification, many investors are looking for asymmetrical risk/return characteristics. This fund delivers that diversification with the flexibility to explore up and down the capital structure, allowing the managers to exploit the relative value within and between companies.”
