The advantages of active management are clear.
Quite simply, in a world characterised by distorted markets and index inefficiencies, skilled active managers have a wealth of opportunities to generate excess returns.
And in today’s market environment, where asset prices are no longer buoyed by ultra-low interest rates, the opportunities are looking particularly attractive. Now the tide is receding, revealing an investment landscape where fundamental research matters more than ever.
We think active strategies should play an essential role in long-term portfolio building. Here’s why we think it’s time for you to get the active advantage.
The J.P. Morgan Asset Management advantage
The argument for including active strategies in portfolios is a strong one. When paired with the scale, expertise and active culture of J.P. Morgan Asset Management, the case is even stronger.
1. Our scale. Your competitive edge.
J.P. Morgan Asset Management’s scale is not just a statistic – it’s a strategic advantage. Present across four continents, 16 countries and 76 markets, we have the on-the-ground experience that is crucial to understand the nuances of sectors, markets, and individual companies or issuers (source for all company information: J.P Morgan Asset Management, as of 30 June 2024).
We have over 1,300 in-market portfolio managers, investment specialists and research analysts, who use their expertise to uncover undervalued stocks or bonds, take top-down regional and sector allocation decisions, determine duration and spread exposures, and implement strategic and tactical asset allocation decisions across our portfolios.
We also have the trading resources and market relationships to seize opportunities rapidly – something that comes naturally to us as part of one of the world’s biggest banks.
And finally, our investors have access to a single, state-of-the-art investment platform (Spectrum), which allows our firm-wide research to be shared across our investment teams, and provides advanced portfolio management tools and trading capabilities enhanced by artificial intelligence (AI) to help bring our insights to life in your portfolios.
The result? A dependable competitive edge.
2. Our information. Your advantage.
Since the 1980s, J.P. Morgan Asset Management has built up a formidable research team. With over 380 dedicated research analysts across asset classes, we generate proprietary research to power our active portfolios.
We treat the analyst position as a career, not a stepping stone. Our analysts are judged against and remunerated for the calls they make. This responsibility cultivates more honest and curious conversations in pursuit of the investment insights that our portfolio managers can then use to help them select the most attractive securities for our portfolios.
And this research isn’t just about crunching numbers; it’s about joining the dots between the trends shaping industries and even across asset classes. Collaborating in global teams, our analysts build frameworks to identify the likely long-term winners and losers within the industries they cover.
Along the way, they connect with thousands of company management teams, industry experts, and local stakeholders to gain insights that can’t be gleaned from public data alone. That’s vital when the widespread use of AI means most people are working with the same inputs. Only investors capable of combining AI tools with proprietary, qualitative data will truly maximise its potential. Fundamentally, there’s no substitute for looking someone in the eye – that’s real intelligence, and it’s the foundation for long-term success.
Backed by an annual research budget of $420 million and covering over 4,600 companies, our network helps us uncover the insights others might miss. No algorithm can replace that work – but they can be improved by the information it yields.
3. Our philosophy. Your belief.
Our investment philosophy is rooted in the long term. True value is often only realised over years, not months.
For us, the key is to focus on the areas where we have advantages while reducing risks in areas where we don’t. This approach requires discipline—particularly when it comes to managing uncompensated risks.
We focus on our advantage as a truly active manager—security-specific research—so that long-term performance is driven by our insights rather than broad market movements. Our aim is to turn our information advantage into positive excess returns for our clients.
The power to build stronger portfolios
The case for having actively managed strategies in your portfolios is stronger than ever, but to truly capitalise on the potential of active management, you need a partner who combines global scale, deep expertise, a proven track record, and a commitment to you.
Our commitment to your success is not just an output – it’s a core part of our identity, and has been for more than a century.
We’re here to help solve your investment challenges and provide value that extends beyond numbers or products. It’s all about giving you the power, and the perspective, to build stronger portfolios.
This is a marketing communication. The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and may be subject to change without reference or notification to you. The value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
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