JP Morgan Funds, the mutual fund arm of JP Morgan Asset Management, has launched a tax-exempt fixed income fund called the JP Morgan Tax Aware Real Return Fund, which aims to maximize after-tax inflation protected returns. This is done through investing in an inflation-linked and tax-exempt securities portfolio. Deepa Majmudar and Richard Taormina manage the fund.
"This fund will allow investors to diversify their portfolio while at the same time potentially reduce their taxable income and guard against a loss of purchasing power due to inflation," said Connie Plaehn, managing director and head of retail fixed income at JP Moran Asset Management. "This combination of strategies has not previously been broadly accessible to taxpaying investors."
The fund prefers long-term gains rather than ordinary income, or short-term gains. It uses tax-efficient, active portfolio management that looks to "harvest losses to offset potential gains."
It uses the Lehman Brothers U.S. 1-10 year TIPS Index as a measure of inflation-protected return and has a minimum investment of $1,000.