The strategy will be part of JPMAM’s new global real assets group, a $50 billion business that is driven primarily by real estate and includes infrastructure. But JPMAM managers are looking at opportunistic investments throughout the real assets group because the prices are depressed and in the hope that economic recovery will fuel inflation, officials said at an April 23 client seminar in London. Eaton Partners predicted opportunities in real assets because banks, the traditional capital providers, would be forced to sell non-core assets to shore up capital requirements. Banks are looking to unload ships and are willing to deal, he said, meaning investors entering the market now will see strong returns as global demand returns and shipping prices rise. Jane Welsh, global head of private markets research at Watson Wyatt Worldwide, Reigate, England, said because of shipping’s cyclical nature and dependence on global economic growth, fund executives might view it to be too risky. Johnson, New York-based managing director at JPMAM, gave examples at the seminar of how his team has bargained with banks on prices of commercial real estate developments in the U. read more

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