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.
A modest slowdown in global growth is expected as financial conditions remain restrictive and investor sentiment remains cautious. With the Iran war causing disruption in energy supply, highly volatile oil prices and increased shipping costs could further drive broad-based inflation. Against this backdrop, AISS identifies the following key themes across alternatives:
- Global real estate exhibit strong fundamentals across key property types; the recovery in the U.S. is expected to continue; lower growth in Europe may weigh on performance of core assets.
- In transport, geopolitical tensions are extending trade routes and distance; the pace of newbuilding in certain sectors is a potential risk if more normalized trade routes resume.
- Infrastructure, especially utilities, benefit from inflation pass-through mechanisms and surging global energy demand fueled by high-tech manufacturing and data centers.
- Increased short-term inflation expectations and improving housing affordability are expected to benefit timberland.
- Broadly healthy operating fundamentals in REITs and listed real assets; meaningful REITs NAV discount vs. private should provide near-term tailwind.
- Tightening spreads relative to broadly syndicated loans, and relatively high payment-in-kind (PIK) levels in private credit may adversely impact performance; AI disruption in software sector may pose a potential contagion risk.
- Economic outlook uncertainty coupled with liquidity challenges in private credit should potentially increase market dislocation and distressed opportunity set.
- Strong deal making momentum and improving exit environment will provide attractive opportunities in private equity while 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 allocation2. The AISS relative value outlook reflects asset class views, not specific managers or products. The framework focuses on low-to-no J-curve alternatives3, 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 realized 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 (AUS)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 140+ investment factors to capture return dispersion and support active, discretionary sizing. Clients can access these capabilities through discretionary evergreen commingled funds, customized 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.