Why the big picture?
The JPMorgan Global Macro Opportunities Fund targets positive performance regardless of the market environment, investing in shares, bonds and other assets to build portfolio resilience.
Provided for illustrative purposes, subject to change from time to time not to be construed as investment recommendation or advice.
1. Return expectations for traditional assets have fallen
Long-term capital market assumptions have fallen in recent years, suggesting that returns will be much harder to generate from traditional assets over the next 10-15 years versus the last. To bridge this return gap, investors need to consider funds that are not reliant solely on market beta to drive returns.
2. Flexibility in different market environments
The depth and breadth of the human and economic impact of the COVID-19 pandemic is still unfolding, and the speed and sustainability of the recovery remains quite uncertain. With a wide range of economic outcomes, we anticipate higher volatility in the months to come and continue to monitor high frequency activity data as economies re-open alongside continued support from policy globally. One of the Fund’s key characteristics that helps us to seek positive returns in different market environments is ﬂexibility. We are able to quickly shift our positioning should the macro backdrop change, for example if we see a sustained strength in recovery or greater risks of rising cases of infection.
Why JPMorgan Global Macro Opportunities Fund?
The JPMorgan Global Macro Opportunities Fund is a multi-asset, unconstrained fund that is managed with a strong focus on risk with less than 10% expected realised volatility. In a client portfolio, the Fund can be:
Unconstrained by an asset-based benchmark
Not solely reliant on rising markets to generate return
Focused implementation helps boost return potential
Daily liquidity can improve profile of alternatives allocation
Lower cost than traditional macro hedge funds
Transparent and clear reporting of portfolio holdings
By employing a macro, focused and flexible investment approach, we draw on a broad opportunity set with long and short exposures, generating positive returns in up and down markets. This return profile is demonstrated in the chart, which shows our average returns versus the average for equity, fixed income and a balanced allocation.
Representative performance using JPMorgan Investment Funds – Global Macro Opportunities Fund (LUX SICAV^) from 30.11.2012 to 31.05.2020
How we see the world?
The JPMorgan Global Macro Opportunities Fund seeks to exploit the inefficiencies in markets presented by the mispricing of macro trends and changes, which might be cyclical or secular in nature. We delineate our world view into a set of macro themes to provide an efficient framework for focusing our research and the basis of profitable investment opportunities. We implement these themes through a focused set of strategies and can flexibly adjust portfolio exposures when the macro landscape and market environment are shifting. Risk awareness is central to the investment approach.
For example, the rapid development and widespread adoption of new technology is disrupting existing business models and creating opportunities, resulting in an environment of winners and losers. We are tapping into a number of trends and changes such as digital transformation, cloud computing and the increasing use of electronic payments, and are currently assessing what opportunities may arise from the advent of 5G.
In addition, demographic shifts and economic developments also carry global implications. Our strategy benefits from an unconstrained approach and is not reliant on rising markets to generate returns on your investment.
How our macro themes and strategies are interlinked
Our team of macro investors draws on multiple asset classes to reflect their macro themes in focused investment strategies (involving multiple trades and securities) to deliver a high conviction portfolio.
Unconstrained, dynamic portfolio
We offer investors an unconstrained, dynamic portfolio that can invest across equities, fixed income and currencies with the ability to go long and short. As the macro landscape and direction of markets evolve, we can dynamically shift the JPMorgan Global Macro Opportunities Fund’s exposures, taking into account the correlations between asset classes.
With macro and markets evolving rapidly, investors need portfolios with the flexibility to navigate changes and generate return from different sources. The grid shows how the Fund’s correlation to different assets has varied over time as we have reflected our views in different strategies and, importantly, stayed low in the long term.
Our Alternatives Investing Capabilities
US$ 144 billion
Investment Offices Worldwide
With one of the longest track records in alternatives investing, the team has met and endeavours to continue to meet investor needs in different market conditions. We share our insights.