J.P. Morgan Asset Management (JPMAM) and iCapital Network Canada Ltd. (iCapital Canada) have partnered to launch a private market fund for accredited Canadian investors, the asset manager announced Tuesday.
The iCapital PEG Evergreen Private Equity CAD Fund invests in JPMorgan Private Markets Fund, a non-diversified closed-end investment management company incorporated under the U.S. Investment Company Act of 1940. The fund will be managed by iCapital Canada and is the first JP Morgan strategy, as stated in the release available to Canadian advisors.
The launch comes a month after JPMAM listed its first ETFs in Canada and represents “an important advancement in our private markets strategy in Canada,” Travis Hughes, JPMAM’s head of Canada, said in the release.
The Fund invests primarily in an actively managed portfolio of private equity investments and other private assets.
Ashmi Mehrotra, the fund’s portfolio manager and global co-head of JPMAM’s private equity group, said the group identifies the most effective managers of small and medium-sized enterprises.
“Small and medium-sized buyouts constitute a large portion of the overall private equity market, with lower average entry prices and leverage multiples, as well as clear value creation opportunities,” Mehrotra said in the release. “We believe this dynamic can result in greater returns for long-term investors.”
Hughes said JPMAM sees “significant demand” for alternative investments in Canada.
As stated in the release, JPMorgan Chase & Co. invested in global fintech iCapital in 2018. Since then, the companies have worked together to increase access to private market investment in several regions.
Other new products
Also on Tuesday, Manulife launched a series of segregated funds and a permanent life insurance product: the 75/100 Segregated Fund Series and the Manulife Issue Life Guarantee, respectively.
The latter is permanent life insurance that covers up to $100,000 for Canadians aged 18 to 70 and up to $50,000 for those aged 71 to 75, with no medical tests or health questions required.
Picton Mahoney Asset Management has launched the Picton Mahoney Fortified Investment Grade Alternative Fund, which invests primarily in North American investment grade corporate and government debt securities. As stated in the release, the fund follows a long/short strategy and uses hedging tools such as short positions to help manage risks such as interest rate, liquidity, currency and credit risks.
The fund’s Class A, F, I and O shares launched on November 6, and the fund’s ETF units were listed on the Toronto Stock Exchange (TSX: PFIG) on Tuesday.
LongPoint Asset Management Inc. launched its first ETF – ForAll Core & More US Equity Index ETF (Cboe: FORU) – on Tuesday after filing a preliminary prospectus with the Canadian Securities Commission earlier this year.
It is a dynamic asset allocation ETF that uses other ETFs to track an index created by ForAll Investment Research Inc. based in Powell River, BC. Index allocation changes based on market conditions.
“The index components provide exposure to U.S. equities, with a focus on technology, without exposure to fossil fuels. The index also shifts to defensive positions during periods of high volatility and can be strategically allocated to the iShares Gold Bullion ETF Hedged,” the release reads.
