Head of Alternatives Investment Strategy & Solutions (AISS)
In brief
J.P. Morgan Asset Management’s Alternatives Investment Strategy & Solutions (AISS) team provides a 12–24 month relative-value outlook across major alternative asset classes.
As fiscal and monetary policy continues to evolve in 2026, alternatives1 can aid investors in navigating this environment and uncovering opportunities for incremental returns and diversification.
Global growth is expected to stay moderate, but still vulnerable to shocks. Headline inflation is projected to cool from the elevated pace in 1H 2026, but tighter labor markets and geopolitical uncertainties are expected to keep core inflation above central banks’ long-term targets. Against this backdrop, AISS identifies the following key themes across alternatives:
Credit-like alternatives
- Yield compression in private credit relative to public fixed income, relatively high payment-in-kind (PIK) levels and liquidity concerns may adversely impact performance.
- Tightening spreads in commercial real estate (CRE) debt across property types coupled with potential rate hikes will weigh on the performance of existing fixed rated loans.
Hybrids
- Infrastructure, especially utilities and power assets, continue to benefit from surging global electricity demand, driven by AI, electrification of transport and commercial needs.
- In transport, geopolitical disruptions have resulted in longer trade routes for maritime and energy logistics assets, creating a tailwind for lease rates; however, strong market conditions have boosted vessel orders and increased the potential for a supply overhang when vessels deliver.
- Macroeconomic uncertainty and potentially higher-for-longer interest rate environment are expected to weigh on the demand drivers for timberland in the near term.
- In global real estate, fundamentals are improving across key property types as supply remains muted. The U.S. recovery is expected to continue, while lower growth and rate-tightening in Europe may weigh on performance of core assets.
Equity-like alternatives
- Broadly healthy operating fundamentals in REITs and listed real assets have additional tailwinds from trends such as demographics, supply chain resilience and energy security.
- Exit activity in private equity continues to be challenged from market disruption and valuation uncertainty, resulting in significantly lower-than average distributions to limited partners (LPs). This environment should support the secondaries market.
Important considerations for the AISS relative value outlook
The AISS alternatives relative value outlook is for 12–24-month investment decisions in a diversified alternatives portfolio. While alternatives are generally less liquid, the framework supports investors in marginal capital allocation, capturing return dispersion, portfolio evolution and liquidity management.
The relative values are derived through macro, fundamental and technical (MFT) frameworks, with conviction levers indicating near-term attractiveness versus other alternative asset classes. This approach complements long-term strategic asset allocation to inform marginal capital allocation2. The AISS relative value outlook reflects asset class views, not specific managers or products. The framework focuses on low-to-no J-curve alternatives3, where positions can be adjusted within a 12–24-month horizon. AISS analyses and provides long-term views on secular thematic trends and entry points for J-curve alternative asset classes with a typical fund life of 7–10+ years. These J-curve alternatives are excluded from the relative value outlook as outcomes are realized during the harvest period. AISS will continue to expand the scope of asset classes included in the relative value framework over time, such as hedge funds.
Alternatives Investment Strategy & Solutions
AISS is an independent multi-alternatives investment engine that benefits from the scale, breadth and depth of J.P. Morgan's broader $665+ billion4 alternatives platform. The team brings a data-driven, research-oriented approach to multi-alternatives portfolio construction and management.
AISS brings 15+ years of dedicated multi-alternatives experience to deliver insights-driven portfolio management. The team provides full-spectrum access to real estate, real assets, private equity, private credit and listed alternatives – integrated with established JPMAM operating platforms – using proprietary relative value views across 10+ asset classes, 50+ sectors and 140+ investment factors to capture return dispersion and support active, discretionary sizing. Clients can access these capabilities through discretionary evergreen commingled funds, customized institutional and private wealth multi-alternatives solutions, and region-specific vehicles including Insurance Dedicated Funds (IDF), European Long-Term Investment Funds (ELTIF) and Long-Term Asset Funds (LTAF). This approach has resulted in a long-standing track record of building multi-alternatives portfolios aligned to client objectives, aiming for resilient returns, scalable diversification and durability across varying market environments.
The AISS team has continued to innovate and demonstrate resilient outcomes over the last 15+ years – evolving from early real-assets mandates to today’s dynamic discretionary multi-alternatives products and region-specific structures – delivered through a robust, disciplined, repeatable investment process.