JPMorgan Global Core Real Assets launches C-Share issue
The Board of JPMorgan Global Core Real Assets (JARA) has announced its intention to launch a C-Share issue.
Launched in September 2019, JARA has now fully invested the proceeds from its Initial Public Offering and achieved its first year dividend target of 2 to 3 per cent in the first three dividends it has paid to its shareholders. The Company is now seeking to raise further equity in response to investor demand by way of a C-Share.
Commenting on the C-share issue, Chairman John Scott of JPMorgan Global Core Real Assets Ltd, says: “We are very pleased with the performance of JARA and the investor support it has received since launch, through a year of considerable turmoil for financial markets. We have been growing the Company through gradual share issuance but it was always our intention to return to the market to raise further equity, when investor demand and the right market opportunities presented themselves.
“No asset class has been insulated from the effects of the pandemic but the attributes of a broadly diversified portfolio of real assets, with their relatively stable asset values and predictable cash flows, should continue to provide an attractive solution to income-seeking investors.”
JARA is designed to deliver investors income and capital growth, with a long-term target NAV total return of 7 to 9 per cent per annum of which 4 to 6 per cent will be in paid on the form of dividend income. JARA does this by investing in a globally diversified portfolio of more than 700 individual “core” real assets which, by JPMAM’s definition, offer reliable income through predictable, highly forecastable, long-term cash flows.
Infrastructure: long-term, core infrastructure assets diversified across sectors (ie renewables, regulated utilities, contracted power) and geographies (ie OECD markets)
Real Estate: diversified properties across the residential, retail, industrial, and office sectors in major US and APAC markets
Transportation: a diversified mix of assets across energy logistics, maritime, aviation and rail
Listed Real Assets: investing in publicly traded securities with exposure to real assets, including the common and preferred equity, convertibles and debt of real estate investment trusts (REITs)
Philip Waller, alternatives investment specialist at J.P. Morgan Asset Management, said: “Core real assets, which tend to be less correlated with equities and bonds, have held up well and shown their durability in light of this year’s market volatility. Given the uncertain market outlook, we think JARA continues to offers a bright spot in an environment of compressed yields.”