$780m haul for JP Morgan maritime fund

The JP Morgan Global Maritime Investment Fund surpassed its $750m target, attracting a total $780m. The fund is geared toward owning dry cargo ships and tankers.

A JP Morgan Asset Management (JPMAM) fund created in 2010 to invest in watercraft has bettered its initial $750 million fundraising target, the financial services provider disclosed in a regulatory filing.

The JP Morgan Global Maritime Investment Fund closed with $780 million in committed capital, according to paperwork submitted to the US Securities and Exchange Commission (SEC) Tuesday.

The Wall Street firm decided to establish a so-called maritime fund to capitalize on the falling value of shipping in the aftermath of the worldwide economic recession and global financial crisis.

JP Morgan reasoned that a market bubble existed in shipping from 2003 to 2008. A subsequent market downturn in 2009 resulted in a historic buying opportunity.

Between 30 percent to 40 percent of the fund is dedicated to dry cargo vessels—ships that carry bulk, non-liquid goods like iron ore or wheat. The portfolio will also include tankers, which carry liquid.

JP Morgan Global Maritime Investment Fund, which by June 2010 had secured $545 million in committed capital, is slated for a return of 18 percent to 20 percent.

In addition, the fund has a 1.5 management fee and a 20 percent performance fee.

JP Morgan had secured a $75 million commitment from the San Diego County Employees Retirement Association in May 2010.