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 dynamics continue to evolve in 2026, alternatives1 – an essential toolkit in investors’ portfolios – may aid investors in navigating this environment and uncovering opportunities for incremental returns and diversification.
With the expectation of moderating global economic growth and a rise in inflation expectations, we see the following key drivers of alternatives in 2026:
- Commercial real estate valuations in U.S. are showing signs of recovery, with improving fundamentals and lower debt costs strengthening the outlook.
- Global infrastructure is benefiting from increased electricity demand across many sectors, including data centers and hightech manufacturing.
- Global transport leasing is benefiting from logistics volatility and evolving trade patterns, with longer routes and travel distances as tailwinds.
- Near-term market volatility may impact the performance of global listed real assets.
- Tight credit spreads may signal lower near-term returns in new private credit and commercial mortgage loans, but opportunities exist in secondaries.
- Private equity is supported by an improving exit environment and market sentiment; discounts remain tight in secondaries.
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 allocation.2 The AISS relative value outlook reflects asset class views, not specific managers or products. The framework focuses on low-to-no J-curve alternatives,3 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 realised 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 the $460 billion alternatives assets under supervision (AUM)4 of J.P. Morgan Asset Management. 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 100+ investment factors to capture return dispersion and support active, discretionary sizing. Clients can access these capabilities through discretionary evergreen commingled funds, customised 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.