J.P. Morgan Funds, the mutual fund arm of J.P. Morgan Asset Management, has launched a commodities mutual fund, the Highbridge Dynamic Commodities Strategy Fund.
The fund seeks to offer individual investors the opportunity to gain exposure to commodities, increase return potential, and reduce risk in today’s growing global economy.
The actively-managed strategy invests in securities linked directly to the value of liquid commodities or commodity futures contracts, presenting the potential to generate alpha and gain broad exposure to various market sectors.
It takes a long-biased approach with the ability to short commodity sectors to potentially capture returns from both rising and falling prices.
The emphasis on risk management seeks to manage the high level of volatility inherent in the commodities market and a "drawdown control" feature attempts to decrease portfolio exposures during periods of market underperformance.
"The Highbridge Dynamic Commodities Strategy Fund gives individual investors access to the investment capabilities of Highbridge Capital Management in an important asset class, with the transparency and cost structure of a mutual fund vehicle," says George Gatch, president and chief executive of J.P. Morgan Funds. "This innovative product provides another option for diversification as they adjust their current portfolio for new market realities."
"We are excited to offer investors a unique active approach to commodity markets, integrating both our long and short insights," adds Mark Nodelman, co-manager of the Highbridge Dynamic Commodities Strategy Fund.