JPM Global Macro Opportunities Fund: as a diversifierContributor 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
The JPMorgan Global Growth & Income plc seeks out strong long-term returns by investing in a best ideas, high-conviction portfolio from across the world's stock market. The Company also delivers predictable quarterly income distributions which are set at the beginning of its financial year.
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.