BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS

Size: px

Start display at page:

Download "BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS"

Amie Higgins
5 years ago
Views:

1 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE BUILDING STRONGER PORTFOLIOS WITH MULTI-ASSET SOLUTIONS Leveraging the best ideas of J.P. Morgan

2 Stronger portfolios for better client results It takes more than a mix of different investments to create a strong portfolio. It takes experts who know what investments to include, how much to put in each, which managers to choose and when to make adjustments as market conditions change. We believe building a stronger portfolio starts with our clients goals. And, no matter what your objective, our only mission is to help you achieve it. 1. ACTIVELY SHARING EXPERTISE 2. EMPOWERING BETTER DECISIONS 3. BUILDING THE RIGHT INVESTMENT PORTFOLIO 4. TAPPING INTO PROVEN SUCCESS LET S SOLVE IT.

3 ACTIVELY SHARING EXPERTISE Portfolio building expertise with access to global investment capabilities Our multi-asset expertise: For more than 45 years, the Multi-Asset Solutions team at J.P. Morgan Asset Management has been analyzing global markets, developing investment portfolios, selecting investment managers and managing risks for a broad range of clients from individual investors to institutional clientele. Access to the best ideas of J.P. Morgan: Multi-Asset Solutions integrates an industryleading team of asset allocation specialists with the breadth and depth of J.P. Morgan s global investment platform 500 investment strategies across asset classes, geographies and investment styles. The result: A stronger portfolio leveraging the asset allocation expertise and best investment ideas of J.P. Morgan. 80+ Multi-Asset Solutions investment professionals 1 Includes 37 CFA charterholders, 17 MBAs and five PhDs Backed by 16 dedicated research analysts Responsible for more than $200 billion in assets 2 WORKING TOGETHER 1,000+ J.P. Morgan investment professionals Based in 29 locations across 16 countries Manage 500 investment strategies Responsible for $1.5 trillion in assets 1 J.P. Morgan Asset Management, as of 3/31/17. 2 Excludes custom glide path and retail advisory assets.

EMPOWERING BETTER DECISIONS Research-driven insights to invest with conviction We believe building a stronger portfolio starts by gathering better insights.

These proprietary views guide key decisions made within your portfolio what asset classes to include and exclude, which to overweight and underweight, and when to adjust the mix as conditions change.

4 EMPOWERING BETTER DECISIONS Research-driven insights to invest with conviction We believe building a stronger portfolio starts by gathering better insights. That s why we carefully study every major asset class worldwide to create an informed opinion on its long- and short-term prospects. These proprietary views guide key decisions made within your portfolio what asset classes to include and exclude, which to overweight and underweight, and when to adjust the mix as conditions change. It s just one part of a comprehensive, research-driven process that combines our own in-house analysis with perspectives from experts throughout J.P. Morgan. As a team, we examine and debate everything from the biggest factors affecting global economies to the smallest details surrounding each individual security within your portfolio. Our combined views serve as the blueprint for all the multi-asset solutions we manage. That means your investments are guided by the same insights used to grow and protect billions of dollars for large pension plans, corporations, charities and other institutions. Empowering better decisions Max negative Asset class Opportunity set REAL ESTATE SOVEREIGN FIXED INCOME REGIONAL PREFERENCE BY ASSET CLASS EQUITIES MAIN ASSET CLASSES Change Negative Neutral Positive Neutral Max positive Rationale Equities/bonds Growth broadening out globally increases confidence that stocks will lead bonds Duration Reflationary trends picking up in most regions lead to steady rise in global yields Credit Credit now expensive, but remains likely to outperform government bonds Commodities Supported by better growth driving up oil demand; bulks, though, look stretched Real estate Real estate fairly valued on most metrics; late in cycle for real estate now Cash Negative and near-negative rates a disincentive to holding cash U.S. large cap Rich valuations offset by good all-in yield and positive earnings momentum U.S. small cap Valuations stretched vs. U.S. large cap, but cyclical upturn lends some support Europe ex-uk Attractively valued, but near-term political risks may constrain upside for now UK Currency support fully priced; political and economic risks yet to be discounted Japan Improving domestic picture, broader global growth and soft yen all provide support Asia Pacific ex-japan Becoming attractive on valuations and helped further by steady outlook for China Emerging markets Risk of sharp dollar rally is fading, and growth is broadening out across EM Direct real estate Late in cycle for real estate; valuation support fading at the margin U.S. REITs Vulnerable to higher yields; valuations quite fair after early 2017 rally U.S. Treasuries Fed hikes and better growth support case for yields moving steadily higher over 2017 U.S. TIPS Less compelling vs. nominals than they were, but remain a good inflation hedge Euro, core (Bund) ECB tapering in 2018 plus recovery in CPI will start to be priced into core EU bonds Euro, periphery (BTP) Vulnerable during French elections, but now offering attractive spread to Bunds UK Gilts UK economic data likely to slow as CPI rises and Article 50 triggered Japanese JGBs Yields pegged to near zero by BoJ, but prefer to play Japan via currency or equity

BUILDING THE RIGHT INVESTMENT PORTFOLIO Client-focused solutions designed to deliver the best possible results When building all our portfolios, we start with the objective our client wants to

5 BUILDING THE RIGHT INVESTMENT PORTFOLIO Client-focused solutions designed to deliver the best possible results When building all our portfolios, we start with the objective our client wants to achieve. We then construct the portfolio to deliver on that objective. Guided by our forward-looking capital markets research and market views, we create the optimal asset allocation for your portfolio. Once the allocation framework is designed, we select investment managers from across the J.P. Morgan platform to oversee each strategy within your portfolio, drawing on the firm s extensive resources and talent within specific markets around the world. Flexible in our approach and unconstrained in our execution, we choose from hundreds of J.P. Morgan investment strategies 1 covering all asset classes and geographic regions. This breadth of capabilities gives us more opportunity and flexibility to find the combination offering you the most appropriate asset mix and risk/return profile based on your specific goals. We actively monitor and continuously evaluate the portfolio s asset allocation, making tactical shifts as the markets and our views on the markets change. This team approach allows each person involved with your portfolio to concentrate on what they do best. Needs-driven solutions harnessing J.P. Morgan investment strategies and insights Client goals Equities Fixed Income Asset allocation views Save for retirement Qualitative insights Spend during retirement Generate income Preserve capital Prepare for college Multi-Asset Solutions Quantitative analysis Underlying manager views Investment team dialogue Manage volatility Liquidity Alternatives 1 We may leverage the capabilities of external managers in cases such as passive index strategies and certain alternative strategies.

TAPPING INTO PROVEN SUCCESS More than 45-year track record of demonstrated results Stocks rise and fall. Interest rates fluctuate. Economies expand and contract.

Since 1970, clients have turned to us for solutions to their investment challenges.

Our legacy of solving for clients needs, combined with a long track record of strong performance, are just some of the reasons investors like you now entrust us with more than $200 billion in assets.

6 TAPPING INTO PROVEN SUCCESS More than 45-year track record of demonstrated results Stocks rise and fall. Interest rates fluctuate. Economies expand and contract. Through it all, our mission remains the same to guide investors through complex markets and toward life s most important goals. Since 1970, clients have turned to us for solutions to their investment challenges. And we ve responded with innovative multi-asset portfolios that have established us as an industry leader and trusted partner. Our legacy of solving for clients needs, combined with a long track record of strong performance, are just some of the reasons investors like you now entrust us with more than $200 billion in assets. 1 More than 35 funds with share classes rated or by Morningstar 2 Ranked among top 10 largest multi-asset mutual fund managers in the world 3 Awarded U.S. Allocation Fund Manager of the Year by Morningstar 4 1 Source: J.P. Morgan Asset Management, as of 3/31/17. 2 Source: Morningstar, Nomura; as of 3/31/17. The mutual funds with a 4/5 star rating analysis is sourced from Morningstar for all funds with the exception of Japan-domiciled funds; Nomura was used for Japan-domiciled funds. The analysis includes Global Asset Management open-ended funds that are rated by the aforementioned sources. The multiasset classification used in the illustration is based on J.P. Morgan s own categorization. The share class with the highest Morningstar star rating represents its respective fund. The Nomura star rating represents the aggregate fund. Other share classes may have different performance characteristics and may have different ratings; the highest rated share class may not be available to all investors. All star ratings sourced from Morningstar reflect the Morningstar Overall Rating TM. For Japan-domiciled funds, the star rating is based on the Nomura 3-year star rating. Funds with fewer than three years of history are not rated by Morningstar nor Nomura and hence excluded from this analysis. Other funds that do not have a rating are also excluded from this analysis. Ratings are based on past performance and are not indicative of future results. 3 Source: J.P. Morgan Asset Management analysis based on data from Strategic Insight; multi-asset mutual fund peer group is global and excludes target date funds; based on global data as of 2/28/17. 4 Source: Morningstar Awards Morningstar, Inc. All Rights Reserved. The 2014 U.S. Allocation Fund Manager of the Year was awarded to the SmartRetirement team for the management of the JPMorgan SmartRetirement Target-date Series (Institutional Shares).

7 Building stronger portfolios At J.P. Morgan Asset Management, collaborating with our clients in an effort to build stronger portfolios drives everything we do. Whatever you re looking to achieve, we re committed to sharing our expertise, insights and investment solutions across all asset classes to help you and your financial advisor make better decisions and pursue greater success. LET S SOLVE IT.

8 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE To learn more Please consult your financial advisor, visit jpmorganfunds.com or call Contact JPMorgan Distribution Services at for a fund prospectus. You can also visit us at Investors should carefully consider a fund s investment objectives and risks as well as charges and expenses before investing. The prospectus contains this and other fund information. Read the prospectus carefully before investing. This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purpose. Any examples used are generic, hypothetical and for illustration purposes only. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor s own situation. Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable. These views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. Past performance is no guarantee of future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Morningstar rates mutual funds from one to five stars based on how well they ve performed. The Morningstar Rating TM for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for months of total returns, 60% five-year rating/40% three-year rating for months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Rankings do not take sales loads into account. J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC. JPMorgan Chase & Co., April 2017 BRO-CAP-MAS jpmorganfunds.com

WORKING TOGETHER TO BUILD STRONGER PORTFOLIOS

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE WORKING TOGETHER TO BUILD STRONGER PORTFOLIOS Four ways J.P. Morgan helps solve your investment needs The path to a stronger portfolio starts here It takes