Lack of interest drives JP Morgan to liquidate its Catholic fund

JP Morgan Asset Management has decided to liquidate its Global Catholic Ethical Balanced fund, following limited lack of appetite for investments based on Catholic beliefs.

The fund was launched in May 2011 and had net assets of just €4.3m at the end of May, against a $30m threshold outlined in its prospectus.

The aim of the fund was to replicate the success of funds compliant with Shariah law.

The decision to liquidate the fund has been taken for reduced prospects of attracting new investment into the sub-fund, JP Morgan said.

Investments in bonds and equities were based on their adherence to Catholic beliefs in consultation with an advisory body composed of representatives of the Roman Catholic church and chaired by a member from Italy’s real estate group Gruppo Re.

Meanwhile, JP Morgan continues to offer Shariah-compliant products, structured to comply with the tenets of Islam.

The Islamic bond market surged in the first half of 2012, and issuance of sukuk, Islamic bond-like instruments, is expected to reach record levels up to $126bn, more than three times the 2007 level of $38bn.

Photo: The Vatican

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