JPM Global Macro Opportunities Fund: as a diversifier - J.P. Morgan Asset Management
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JPM Global Macro Opportunities Fund: as a diversifier

Contributor JPMAM UK
Demanding markets require a different perspective

In today’s higher volatility, lower return environment, your clients can’t rely on a traditional balanced approach to deliver either the level of return or the level of portfolio diversification that they have enjoyed in the past.

A diversifier to a 50/50 balanced portfolio

The chart below (Exhibit 1) shows how adding the JPM Global Macro Opportunities Fund to a 50/50 balanced portfolio would have affected overall portfolio returns and volatility from 15 February 2013 to 31 January 2016. Each plot on the chart represents an additional 10% allocation to the JPM Global Macro Opportunities Fund.

We believe the results are compelling. Over this period, adding any allocation to the JPM Global Macro Opportunities Fund has resulted in higher overall returns than a representative pure 50/50 balanced portfolio.

In some cases, adding the JPM Global Macro Opportunities Fund would also have reduced overall portfolio volatility.

Past performance is not necessarily a guide to the future.

Exhibit 1: Historical annualised return versus volatility by adding 10% increments of the JPM Global Macro Opportunities Fund to a 50/50 balanced portfolio

Source: J.P. Morgan Asset Management, Bloomberg, as at 31 January 2016. Annualised return of traditional 50/50 equity/bond portfolio 15 February 2013 to 31 January 2016, represented by 50% MSCI World Index Daily Net Total Return (GBP hedged) and 50% J.P. Morgan Global Government Bond Index (GBP hedged) using weekly returns with net income reinvested. The indices do not include fees or operating expenses and are not available for actual investment. The index returns are calculated using the weighted market value returns for the underlying securities, as determined by the index calculation methodology. Performance of the Global Macro Opportunities Fund is based on Net Asset Value of the C (Accumulation) share class in GBP weekly returns with net income reinvested, net of fees and ongoing charges. Past performance is not a guide to the future. Volatility is the annualised standard deviation using weekly returns.

A focus on macro themes

The JPM Global Macro Opportunities Fund aims to deliver positive returns in different market environments while managing volatility.

The fund utilises an innovative research-oriented approach that capitalises on global macroeconomic themes to drive returns and provide enhanced diversification, even in times of heightened market volatility. The result is a natural portfolio diversifier, with a low correlation to equities and bonds when they look less attractive.

Adding the JPM Global Macro Opportunities Fund to your clients’ existing portfolios has the potential to improve overall returns and boost diversification – making the fund a compelling choice particularly in today’s market environment of lower returns and greater volatility.

Find out more about the JPM Global Macro Opportunities Fund  

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Important information

Please be aware that this material is for information purposes only. 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 are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material.

The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.

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