J.P.Morgan Pursues Alternatives Portfolio for UK Schemes

(July 15, 2010) — J.P.Morgan Asset Management has launched an alternatives portfolio aimed at helping small to medium sized schemes in the UK access asset classes, including hedge funds, infrastructure and private equity.

Allocations will be overseen by JPMAM global multi-asset group global chief investment officer Neill Nuttall and Americas chief investment officer Jeff Geller.

The offering has a strategic allocation of about 30% in hedge funds, 25% in infrastructure, 20% in direct real estate and 10% private equity, as well as around 15% to tactical asset classes such as global convertibles, emerging markets debt, high yield, commodities, REITs and emerging markets equity.

The portfolio will have a minimum investment of about $15 million for a standard managed account, but JPMAM will adjust the solution for investment of upwards of $77 million.

For more stories like this, sign up for the CIO Alert newsletter. 

To contact the <em>aiCIO</em> editor of this story: Application Administrator at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

The conditional offer marks the Toronto-based fund manager's second attempt to purchase an Australian toll road operator, following a failed bid to take control of Transurban Group in May.

(July 15, 2010) — The Canada Pension Plan Investment Board made a $3.4 billion non-binding takeover bid for Macquarie Group Ltd.- backed Intoll Group, a Sydney-based owner of infrastructure assets. The bid marks the board’s second attempt to buy an Australian toll-road operator in eight months.

The offer puts a spotlight on the attractiveness of infrastructure assets, such as toll-roads and airports, that have become targets of investment for the world’s pension funds as a result of their stable, long-term streams of revenue.

“We believe Intolls toll road assets are a good fit with CPPIBs portfolio and long-term investment mandate and are well-situated strategically to benefit from future urban growth in Toronto and Sydney,” Andre Bourbonnais, senior vice president of private investments at the pension fund, said in an emailed statement to Bloomberg.

The bid for Intoll, which is 18% owned by Macquarie Group, spun out of Macquarie Infrastructure Group six months ago, would reach $4.5 billion including debt, the Financial Times reported.

Want the latest institutional investment industry news and insights? Sign up for CIO newsletters. 

Last year, the Canadian pension fund joined the Ontario Teachers’ Pension Plan and Australia’s sovereign wealth fund The Future Fund to launch a $6 billion takeover for Australia’s biggest toll-road operator, Transurban Group.

The Toronto-based CPPIB invests surplus cash from the national Canada Pension Plan.

To contact the <em>aiCIO</em> editor of this story: Application Administrator at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742