Text, J.P. Morgan Asset Management - Global Equities.
Paul Quinsee stands in front of white cubic structures with map lines drifting across the surfaces.
Hello, I'm Paul Quinsee, head of Global Equities at JP Morgan Asset Management. Our ambition in equities is simple, we want to be the best manager. Best, because we can achieve first class returns for our clients across the full breadth of the world's equity markets.
How will we do that? Firstly, by focusing on quality. Setting the bar really high and rigorously assessing everything that we do from a long term perspective to make sure that we can live up to our first class ambitions.
Secondly, by taking advantage of our scale and presence as a leading equity investor in the US, Europe, and Asia to invest in deep commitments to fundamental research, quantitative research, and trading to help drive the work of all of our investment teams around the world. And thirdly, by innovating. Through product development, such as US hedged equity, and through the use of technology throughout our investment process all the way from research through to trade execution.
Of course, all of this ultimately depends on the quality of our investment team. Quality, which comes from the intellect, experience, and diversity of our investors around the world. As Global Head, maintaining the quality of our team is always an absolute priority for me.
Our focus today is on building unified and integrated approaches to both fundamental and quantitative research across the developed and emerging markets. And I'll continue to invest in our technology platform, Spectrum, to provide all of the investors with the tools that they need to succeed. Plus, focusing on the topics of inclusion to make sure that we can attract and retain people with diverse backgrounds and diverse opinions to build the most effective investment team for today and the future.
We know that we are in a hugely competitive business and that our clients have plenty of choice when they think about equity managers. So in 2021 and beyond, we will stay focused on thinking long term, keeping the best possible team, and investing in both research and technology so that we can achieve those first class returns that our clients expect.
Segmented ring around plus sign; Mark Ferguson on a computer screen.
I'm Mark Ferguson, Global Head of Research at JP Morgan Asset Management. As Paul has already mentioned, we have a deep commitment to fundamental research. This commitment dates back to the 1980s, and we see it as a key competitive advantage.
Our annual research budget is $150 million. And we have more than 80 senior analysts in seven main locations around the world. These analysts have an average of 18 years industry experience and between them cover over 2,500 companies. JP Morgan Asset Management structures the research analyst role as a career and not as a stepping stone to portfolio management. As such, our analysts receive the same recognition given to portfolio managers and are compensated accordingly.
Another key advantage of our scale is the global network. Analysts work closely with their regional counterparts gaining a truly global and unified perspective on the industries they cover. Crucially, we have a harmonized research process for all of the 2,500 stocks we cover globally, which greatly enhances the investment dialogue and comparability.
This process emphasizes a deep understanding of corporate quality, including ESG considerations, a thorough assessment of risks, and a disciplined common valuation framework anchored around longer term forecasting of cash flows. It is this combination of scale, experience, quality, and long term focus that allows us to generate the insights that add value for our clients.
A segmented ring forms around a plus sign. Leslie Rich stands in front of the cubic structures with drifting map lines.
Hi, my name is Leslie Rich. And I'm a Senior Research Analyst in the US Equity Group covering electric utilities. I would like to highlight what I believe makes the culture of our equities business unique, the power of the global research team.
And I don't say this simply because of the number of analysts that we have around the world or the experience level of my colleagues, I say this because of the significant collaboration between the research analysts in different industries and across geographies. And this allows us to take a step back, rigorously discuss cross-sector trends, and evolve our investment thesis as conditions change. We then share those ideas collaboratively with the portfolio managers across the entire global complex so that implications for all sectors and stocks can be considered.
One example of this is the electrification of transportation. That ties in the global analysts looking at utilities, transportation, basic materials, and technology.
A line of white electric vehicles sit charging, a woman wearing a hard hat shields her eyes from the sun in front of a man working on solar panels, another woman looks up in a server room.
We compare forecasts, meet with industry experts, and discuss what we're hearing on the ground from the hundreds of companies that we cover. This enables us to build a robust framework and context for stock selection and performance.
Segmented ring around plus sign; Kristian West on a computer screen.
Hello, I am Kristian West. And I am the Diversity Champion for Asset Management. So I actively participate and contribute to the efforts within our equity business.
Our focus is simple, to use technology to ensure quality, scalability, and innovation. Focusing on these three allow us to offer the best possible execution for our clients, and enables our investment teams that take advantage of new data and analytical techniques to inform our investment decisions. And we do that through a combination of our platform, our process, and people.
One of the advantages we have here at JP Morgan is access to considerable technology budget. And in trading we have consciously invested for a number of years making our platform robust, scalable, and flexible to live up to the demands of a complex trading environment. 2020 tested that platform like no other year. We traded $1.4 trillion in equity linked securities across 2.6 million orders, covering 13,000 instruments across 90 global markets.
Data tables on laptop and computer screens.
Spectrum, our proprietary technology platform, provides fundamental and quantitative investors a complete range of applications from research to portfolio analytics and trade execution. The introduction of data science tools on Spectrum leverages big data, cloud computing, and machine learning to systematically analyze data at scale. I would encourage you to ask for a demonstration of this platform.
The backbone about process is automation. Optimized real time, it takes advantage of data science techniques to help decision making cross our investment process and trading. Currently 44% of our trading is automated. And we have aspirations of 70% in the next two years, allowing our traders to focus on the most challenging orders and situations.
So while the markets were unprecedentedly difficult last year, our net execution performance actually improved, saving hundreds of millions of dollars in trading costs for our clients. And in data science, the approach is no different. In 2020, we released textual analytics into Spectrum, our natural language processing application. By autonomously analyzing millions of documents both public and proprietary, it is an example of investors utilizing artificial intelligence in conjunction with active management to add value to our client portfolios.
Now, none of this will be possible if it were not for that our people.
Mosaic of faces.
Not only having subject matter experts in the fields, but ensuring we maintain diversity of thought and well functioning high performance teams. We actively seek out diversity opportunities, including a focus on training with diverse organizations and minority owned entities. This focus has resulted in a continued recognition of our capabilities.
Last year we were voted the Best Buy-Side Electronic Trading team by Financial News for the second consecutive year. We also won the Simply Innovation Award for our automated chatbot functionality, again, for the second consecutive year. So as we go into 2021 and beyond, we aim to further progress the integration of technology throughout our platforms and our processes facilitated by having the very best people. Thank you.
Text, J.P. Morgan Asset Management - Global Equities.
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