J.P. Morgan Asset Management (JPMAM) and iCapital Network Canada Ltd. (iCapital Canada) have partnered to introduce a private market fund to Canadian accredited investors, the asset manager announced Tuesday.
The iCapital PEG Evergreen Private Equity CAD Fund invests in the JPMorgan Private Markets Fund, a non-diversified, closed-end investment management company registered under the U.S. Investment Company Act of 1940. The fund will be managed by iCapital Canada, and is the first J.P. Morgan strategy available to Canadian advisors, a release said.
The launch comes one month after JPMAM listed its first ETFs in Canada and is “an important advancement of our private markets strategy in Canada,” said Travis Hughes, head of Canada with JPMAM, in the release.
The fund invests primarily in an actively managed portfolio of private equity investments and other private assets.
Ashmi Mehrotra, portfolio manager for the fund and global co-head of the JPMAM private equity group, said the group identifies top-performing small and mid-market managers.
“Small and mid-market buyouts make up a large part 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 these dynamics may result in enhanced returns for long-term investors.”
Hughes said JPMAM is seeing “significant demand” for alternative investments in Canada.
JPMorgan Chase & Co. invested in global fintech iCapital in 2018, the release said. The firms have worked together since then to expand access to private market investments in several regions.
Other product news
Also on Tuesday, Manulife launched a segregated fund series and a permanent life insurance product: respectively, the 75/100 Segregated Fund Series and Manulife Guaranteed Issue Life.
The latter is a permanent life insurance product with coverage of up to $100,000 for Canadians between the ages of 18 and 70, and up to $50,000 for those between 71 and 75, with no medical exams or health questions required.
Picton Mahoney Asset Management launched the Picton Mahoney Fortified Investment Grade Alternative Fund, which invests primarily in North American investment-grade corporate and government debt securities. The fund follows a long/short strategy and incorporates hedging tools such as shorting to help manage risks, such as interest rate, liquidity, currency and credit risk, a release said.
Class A, F, I and O units of the fund launched Nov. 6, and ETF units of the fund hit the Toronto Stock Exchange (TSX: PFIG) on Tuesday.
LongPoint Asset Management Inc. launched its first ETF — the ForAll Core & More U.S. Equity Index ETF (Cboe: FORU) — on Tuesday after filing a preliminary prospectus with Canadian securities commissions earlier this year.
It’s a dynamic asset-allocation ETF that uses other ETFs to track an index created by ForAll Investment Research Inc., which is based in Powell River, B.C. Index allocations shift according to market conditions.
“The components of the index provide exposure to the U.S. equities, with a technology focus, without exposure to fossil fuels. The index also rotates to defensive positions in periods of high volatility and can strategically allocate to iShares Gold Bullion ETF Hedged,” a release said.