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IPO - JPMORGAN MULTI-ASSET TRUST PLC

Closed-end funds and OEICs
GJHarney
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IPO - JPMORGAN MULTI-ASSET TRUST PLC

#116474

Postby GJHarney » February 7th, 2018, 10:02 pm

Launching later this month - [url][https://am.jpmorgan.com/gb/en/asset-management/gim/adv/products/investment-trusts/jpm-multi-asset-trust-plc/url]

I like the look of this in terms of some IT diversification, however equally I'm struggling to see the need to buy in to the IPO as I can't see it being likely it will immediately rise in value, also while the charges are ok-ish I also think even cheaper ETF life strategy type alternatives must be better despite the potential leverage advantage of an IT.

Any views, anyone thinking of buying?

forlesen
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Re: IPO - JPMORGAN MULTI-ASSET TRUST PLC

#116480

Postby forlesen » February 7th, 2018, 11:03 pm

Thanks for flagging this up.

It does look potentially interesting. However, at this pre-IPO stage, it's very far from clear how the broad investment remit will be interpreted, and what mix of securities will be adopted.

I'm also not 100% clear on the potential risk of double-charging. From the Prospectus (Section B.34), the trust will have the ability to invest in a wide variety of assets, including:
  • ... funds managed by J.P. Morgan Asset Management ...
  • ... closed-ended funds and exchange-traded funds ...

Both of these seem to have the potential for additional charges over and above the 0.65% / 0.6% AMC of the trust itself.

All in all, I think it's one to take a look at once it's been up and running a few months (assuming it makes it off the runway), once things have settled into a more definite shape. Are there any obvious benefits I'd be missing out on by waiting? I didn't see any, but then I didn't have the patience to watch the videos.

Alaric
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Re: IPO - JPMORGAN MULTI-ASSET TRUST PLC

#116488

Postby Alaric » February 7th, 2018, 11:57 pm

forlesen wrote: Are there any obvious benefits I'd be missing out on by waiting?


As with any IPO, you save on Stamp Duty and Broker commission. If you anticipate that the share price will rise to a premium over NAV, you have the advantage of buying at par. It could move to a discount of course.

Whilst a fund of funds might appear a good idea, it can just be an excuse for double charging.

There was a recent failed IPO for a multi-manager IT. Peoples Trust or some similar name.

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Re: IPO - JPMORGAN MULTI-ASSET TRUST PLC

#116554

Postby colboy » February 8th, 2018, 10:36 am

I see from the JPM website that 'JPMorgan Multi-Asset Trust is the roll-over vehicle for JPMorgan Income & Capital Trust plc'. The latter is being wound up after a fixed life of ten years and was mainly UK equities. The new trust has a more diverse and global remit.


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