JP Morgan Funds, the mutual fund arm of JP Morgan Asset Management, has launched a new commodities mutual fund, the Highbridge Dynamic Commodities Strategy Fund (HDSAX).
JP Morgan Funds has said that Highbridge Dynamic Commodities Strategy Fund will be managed by a team with 28 years combined experience. JP Morgan Funds claimed that the new fund differs from other commodity funds.
JP Morgan Funds said that HDSAX’s actively-managed strategy will invest in securities linked directly to the value of liquid commodities or commodity futures contracts, presenting the potential to generate alpha and gain exposure to various market sectors
HDSAX will take a long-biased approach with the ability to short commodity sectors, to potentially capture returns from both rising and falling prices.
The new fund will emphasis on risk management to manage the high level of volatility inherent in the commodities market and a ‘Drawdown Control’ feature will attempt to dynamically decrease portfolio exposures during periods of market underperformance.
George Gatch, president and CEO of JP Morgan Funds, said: “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. This innovative product provides another option for diversification as they adjust their current portfolio for new market realities.”