David Lebovitz: Welcome to the Center for Investment Excellence, a production of JPMorgan Asset Management. The Center for Investment Excellence is an audio podcast that provides educational insights across asset classes and investment themes. Today's episode is on inflation and interest rates and has been recorded for institutional and professional investors. I am David Lebovitz, Global Market Strategist and host of the Center for Investment Excellence. With me today is Jared Gross, Head of Institutional Portfolio Strategy for JPMorgan Asset Management. Welcome to the Center for Investment Excellence.
Jared Gross: Thanks for having me.
David Lebovitz: So, let's go ahead and jump right in. The topic we're going to be discussing today is one that's really front of mind for all investors and more specifically that question is how inflation will evolve and what that means for the direction of interest rates.
Following an unprecedented coordinated fiscal and monetary response to COVID-19, many are expecting inflation and interest rates to increase during the months ahead. But there are several factors that need to be considered when thinking through these potential outcomes.
Namely, how quickly the economy will come back online? Will people spend the money that they've saved over the course of the past 12 months? What will fiscal support look like going forward, so on and so forth?
And so today Jared and I are here to discuss this topic and really draw out the most important points and themes for institutional investors. And so with that, I'm going to pass it over to Jared to start us off with the first question.
So, Jared, with that, over to you.
Jared Gross: Great. Thanks, David. So you hit the highlights here. Let's start with the current reflationary environment.
Right now we see a confluence of a vaccine driven reopening of the economy, coupled with enormously powerful fiscal stimulus coming from Washington and joining what was already an incredibly strongly accommodative monetary policy, which is basically an unprecedented event, certainly in recent financial and economic history of the United States.
This is going to have an effect on inflation. The question, of course, is how big of an effect and over what time horizon? So share with us a little bit what your thoughts are on the potential for a near-term spike in inflation and where this will likely settle in the long run.
David Lebovitz: Of course. And I think you draw out a very important distinction. And that's what we foresee happening with inflation in the short run is really a different question than what happens to inflation in the long run.
And so to level set, I mean, we, along with pretty much everyone else in the investment community does expect inflation to pick up here over the course of the coming year.
To start, inflation is going to pop in April and May as we lap the loads on inflation from 2020 but those elevated rates of inflation will likely prove to be transitory.
We think after spiking over the next couple of months, inflation will then come back in and settle in at a level of right around 2% during the better part of the summertime.
We then foresee inflation reaccelerating into the end of the year. And we believe that that reacceleration will coincide with the economy really becoming fully reopened and fully back online.
And we think that fundamentally what's going to happen here is there's going to be too much money chasing too few goods and services. And one of the very unique aspects of this downturn is that usually when an economy rolls over, people lose their jobs and they lose their incomes as well.
What has happened this time around is that people have lost their jobs, but their incomes were simply replaced. And so the consumer is going to come out of all of this in a very unique position.
And to put it somewhat bluntly, the consumer is going to emerge from this in a position to consume. And that pent-up demand for services in particular I think will push inflation higher into the end of 2021 and the beginning of 2022.
But the key question here is really how sticky is that inflation? How much momentum or inertia does higher inflation later on this year actually have?
And I think, you know, this is the key question facing investors. We debated heavily within the falls of JPMorgan. It was a central topic during our long-term capital market assumptions process last year.
And generally speaking we are of the view that in the long run things like demographics, income and equality, continued technological adoption, all of these are going to weigh on inflation.
And so we would very much side with the Federal Reserve right here and say that, yes, we will see higher inflation later on in 2021 and the beginning of 2022, but over the next 5 to 10 years we think that inflation will return to a more moderate state, perhaps slightly above what we saw during the prior cycle but by no means do we expect inflation to get out of hand.
Jared Gross: So the view then is that we are expecting to see inflation ramp up a bit above recent history levels, probably for some period of time before declining, and stabilizing at a level that is consistent with low but moderate interest rates and so forth.
Right now when you look at the Fed, I think the market concern is clearly is the Fed getting behind the curve. And in the event that the market sort of forces their hand, is there a potential for some kind of paper tantrum like event?
Powell seems to be remarkably steady in the face of what's going on in the markets right now. We've seen the 10 year yield spike up significantly. We're seeing five year, five year forwards move higher in a lot of the data that people kind of use to focus on where inflation is heading.
I think Powell's line from the recent FOMC meeting was they're not going to act preemptively based on forecasts, which suggests that they really are going to wait to see the whites of the eyes of inflation as it were.
How do you think the Fed's response is likely to evolve? We're already seeing maybe a little bit of diversions in the dot plots and maybe some of the other FOMC members predicting a more rapid sequence of short-term rate hikes.
Talk a little bit about that and what our thinking is around the Fed's reaction.
David Lebovitz: So I think of it as a key question. And arguably the most significant thing that the Fed did last year was shifted their policy framework to this approach characterized by average inflation targeting.
And so based on what you just laid out, what Powell has said and what other said officials have said, is that they are laser focused on getting back to full employment.
They understand that inflation may run above 2% as they work back towards that level of full employment. But they are not willing to allow inflation to spook them. And they will not preemptively tighten policy until the labor market is back to where they want it to be.
I think that the Fed will stay its course here. I've been reminded of something that we used to say when I worked construction in another life which was measure twice and cut once.
You know, they are going to be very deliberate in how they implement policy going forward. And importantly the Fed is not in the business of undermining economic recoveries.
I know if you look at history, one might come to believe that the Fed isn't particularly good at its job but the Fed isn't going to try to remove support before they believe that the economy can stand on its own two feet.
And so I think you're going to see them telegraph tapering long before they actually begin to reduce the pace of asset purchases in an effort to avoid what we saw back in 2013 in the form of the original paper tantrum.
I think that they will be very slow to raise rates. And I know the dot plot is beginning to show some governors expecting rate hikes in 2022. My guess is that we don't see a rate hike until 2023.
And my thought is that although markets are pricing in a more robust Fed reaction to higher rates of inflation, I think that that will come back in over the course of the coming months.
You know, this is very much an exercise that is best described as shining a flashlight around the dark room. You know, the Fed has never take this approach to policy before. That's part of what's causing this tension in markets and a lot of the volatility that we've seen over the course of the past couple of weeks.
But I'm firm believer that Powell's bedside manner will pay dividends over time. And the fact that he has remained calm and composed in the face of some pretty violent moves in interest rates over the past 6 to 8 weeks leads me to believe that over time investors will become more sympathetic and more constructive on the approach that the Fed has laid out up until this point.
So clearly forecasting what the Fed is going to do two years from now is a great way to guaranty that you're wrong, but we don't see the Fed necessarily moving to the exit any time soon.
Again, measuring twice and cutting once really is the way that I would characterize their approach to policy here going forward.
But it's all about inflation and that's what investors are focused on today despite what the Fed is saying about a return to full employment being paramount in their view.
And so Jared, my question for you would be how do you see or how do you think investors should adjust portfolios to account for rising inflation risk?
You know, you and I have talked a lot about the best ways of hedging inflation over the past couple of months. I know you have some pretty strong views on TIPS.
And so I would be curious to hear how you're thinking through an inflation hedging program given some of these uncertainties that continue to exist both in terms of the direction of inflation itself but also the response from the Federal Reserve.
Jared Gross: Thanks, David. You know, this is a great topic. The idea of inflation hedging is one that many investors think a lot about but probably should spend more time considering the ultimate purpose of.
And what I mean by that is the term hedge has a specific meaning. And I think that for those of us in the financial markets, we think of something that has the power to offset a certain risk, effectively in real-time and to a predictable degree.
And when we think about inflation, the reality is that very few investors have the need to hedge in that very precise context, inflation. What they really need to do is out earn inflation over a longer horizon.
Most investment objectives are not linked to a very specific point in time with a degree of precision that requires a hedge to the changes in the Consumer Price Index.
And so I think as investors contemplate how they respond to the current environment, it's important to recognize that inflation is an underlying cause of other things in the portfolio that they should be concerned about.
So the first and most obvious derivative effect of inflation is higher interest rates and probably the second derivative is a steeper yield curve.
And so different types of investors have different sensitivities to those things. If you are invested in traditional core fixed income or shorter duration bonds, your resiliency to rising rates is already reasonably well-established so there might be a rationale for shortening duration, maybe moving a little bit out of treasuries and into spread sectors where you're going to have a little more insulation from the duration component of those returns.
But that's not going to be a game changer for your portfolio. You know, those bonds will mature, re-coupon into higher yielding assets over time.
And as we've seen over a long history, most fixed income returns largely track the yield at which you make the investment if you hold those bonds to maturity. And so generally speaking we think the degree of the need for a response is probably more limited than some people think.
Now if you're a long-term investor, I think this gets to be a little bit more of a thorny situation. Because not just the rise in rates, it's going to have a larger price impact on your portfolio, but a steepening of the yield curve will disproportionately hurt assets further out.
And what we see right now is with the Fed anchoring the front end of the curve with monetary policy holding the Fed funds rate close to zero, that pressure has been to drive the long end of the curve higher.
And if you are an LBI investor or an insurance company or someone who naturally holds long duration fixed income assets, that's going to have a very negative effect on your portfolio value and you hope to get some of that back through declining liabilities, but all else equal you would rather not be exposed to those sorts of risks. So what do you do with that?
Well within your fixed income, if you're a holder of long-term nominal treasuries then TIPS certainly have a role to play as a substitution trade. TIPS will outperform nominal treasuries in a rising rate environment and certainly as inflation expectations rise. And we've seen that.
But it's important to recognize that TIPS do not generate positive returns necessarily because they also have what we would call nominal duration. They are sensitive to rising interest rates in their own right.
And so I think there's a lot of interest on the part of investors in moving into the broader categories of real assets, so not just TIPS but in the liquid markets things like gold, commodities, REITs, even emerging market local currencies in some instances are thought of as having a natural inflation hedge. Certainly short-term floating rates fixed income serves as a source of stability.
And then for those investors who have higher return targets, core real assets, things like real estate, infrastructure, transportation that have underlying contractually driven cash flows that are linked to inflation either very directly or indirectly through the pricing power of the counterparty, those are assets that are very resilient to inflation that offer portfolio diversification and I think are getting a lot of attention from investors right now as a very attractive place to place capital that can outperform inflation across time.
So those are some broad topics around the portfolio itself. As we kind of have been going back and forth on this topic, I think one of these key questions is the relationship between inflation and the Fed and the Fed and the markets and how the markets are kind of pricing ahead of what the Fed is likely to do potentially forcing the Fed's hands and what that's going to mean.
As I heard you speak earlier, David, you know, I was thinking about the Phillips curve, which is something that, you know, academics like to talk about in this context and much has been written about the death of the Phillips curve and the linkage between unemployment and inflation.
And it certainly seems to me, like, in this current environment the Fed seems to be implicitly saying the Phillips curve is dead because they're forecasting inflation stabilizing around 2% while unemployment stabilizes around 3-1/2 to 4, which would be a remarkably benign sort of inflation impulse coming from that level of employment.
If the market doesn't believe it and the market sort of drives rates higher, where do you see that dynamic heading? Is the market just going to kind of force the Fed's hand and drive rates higher no matter what the Fed wants to see?
David Lebovitz: So it's a really good question and one that we've spent a lot of time talking about. Because if we think back to the prior cycle, we effectively dealt with the opposite.
You had the Fed. They kept on forecasting they were going to be able to raise rates and then, you know, had a lot of trouble distancing themselves from the zero bound.
I think you could in the next 12 months see the inverse of that in the sense that the Fed will continue to provide this reassuring message. I think that the Fed will continue asset purchases at its current clip.
And the Fed's goal here is really to help the market get more comfortable and get investors more comfortable with the idea that inflation can run above that 2% target without eliciting a Fed response.
But, you know, again, as I noted earlier, this is somewhat unchartered territory. And you mentioned seeing the whites of the eyes of inflation and really looking for that realized inflation before moving. That's an approach that the Fed has never taken before.
And so I do think you'll see some tug of war here in markets as investors say, well, show me how easy you're going to be. Show me what other tools you have in your toolkit.
Reassure me that you are not going to begin hiking rates until we've really gotten back to full employment. And so that's going to be a process. That's going to take time.
I do think the Fed will be successful in getting the market to understand the approach that it plans to take going forward. But I'm also a big believer that to an extent while the Fed can control the short end of the curve, the global economy controls the long end of the curve.
And even with Europe lagging in the vaccination process, you know, again we do think by the fourth quarter of this year, global growth will be relatively synchronized and relatively robust.
And so I think that despite everything the Fed is going to try to do, we are probably looking at a curve that continues to steepen into year end. But I'm not sure that the curve is going to get so steep. I'm not sure the long rates are going to rise so much that it becomes broadly destabilizing for capital markets.
I think what the Fed is really going to focus on here going forward is not necessarily the level to which rates go but the speed with which they get there.
And to me that was really what undermined equity markets in particular back in February and early March was the fact that you were having these two standard deviation moves in the 10 year yield.
And if that's the cost of capital, that's the base rate for every sort of DCF analysis that's going on, I mean, inevitably you're going to see prices become a bit unmoored when rates are moving at such a rapid clip.
And so, you know, again, it's the speed with which rates rise and the curve continues to steepen that I think is really paramount here. But that begs the question, if we do see the curve continuing to steepen what it means for pension funds and particularly in the sense of how they might think about managing liabilities in a world where short-term rates are remaining very low and long-term rates are continuing to climb higher.
Jared Gross: Yes. That's a great question. And certainly the pension clients have migrated their asset allocations in such a way that these considerations around the shape of the curve and the level of yields in both treasuries and corporate credit are directly impacting their funding status volatility and their viability over time.
What we tend to see is a certain level of calmness driven by the fact that they are hedging a liability. And so the broad thrust of pension strategy over the last 10, 15 years has been to increase the size of the hedge allocation, largely driven by long-term corporate bond and long treasury investments, which are designed to offset movements in the value of liabilities.
So in general you might say pension funds could be a bit agnostic with respect to this movement in the markets because what happens on the asset side may be a little bit painful, but the liabilities will come down to a similar degree and, in fact, generally speaking most pension funds are underhedged to their labilities.
They don't have full funding. The assets are lower in value than the liabilities. And those assets themselves are not fully invested in hedging style fixed income portfolios.
So a movement up in yields, while again it might feel painful in terms of asset returns, is probably going to be net positive for most pension funds in terms of their funded status. So that's the first thing to think about.
Now that doesn't mean pension funds don't look to take some degree of tactical or opportunistic positioning relative to potential moves in the market. You know, in anticipation of rising interest rates, one natural move would be to shorten the duration of their fixed income portfolios. The challenge there, of course, is that you give up a lot of yield in doing so and when the curve is steeper, that give up is more significant.
And if your assets are running at what we would call a negative carry to the liabilities, it forces the rest of the plan's assets to work even harder. And, of course, this is an environment in which forward-looking return expectations across a broad swath of liquid market investment categories are very low relative to historical expectations.
So being defensive on the fixed income side and increasing the burden of return for the remainder of the portfolio may put the plan in a somewhat untenable position in that they cannot generate the levels of return required. And that, of course, rolls back up on the plan sponsor as a higher contribution requirement and so forth.
We also look within the fixed income portfolio for sources of diversification. And the primary mechanism by which pension funds have diversified their hedge strategies has been with U.S. treasuries. And there's a lot of good reasons for that.
Treasuries are very flexible along the yield curve. They offer the possibility to extend very far out on the curve to generate a high level of duration sensitivity with a relatively limited pool of capital so there's sort of a leveraging effect in terms of how they hedge.
All of those are positive attributes of treasuries. The main negative attributes such as they are is there's a fair amount of tracking there between treasuries and the liability.
And, of course, they tend to operate at a low yield, of course, which is something that's very prevalent today. You know, even despite the recent move up in the curve, we're still at very low yield levels by historical terms and well below the levels at which liabilities accrue to sponsors.
And so there is a search on for better ways to diversify hedge portfolios. And I would sort of characterize those in two broad categories. One is with high quality fixed income assets that have predictable hedge characteristics, duration, curve exposures, convexity and so forth.
And the most commonly thought of alternative in that space are securitized assets, basically long duration agency CMBS and CMOs that can be incorporated into a hedge portfolio with a high degree of predictability and they offer a really effective means of diversifying not just the treasuries and providing very high quality assets with a higher yield but also relative to corporate credit risk where there is exposure to downgrades and defaults in these LBI portfolios and securitized can go a long way to limiting that. And so that's one area.
The other half of the diversifying LBI portfolios is really around broader exposure to the credit markets, thinking a little more about crossover and high yield portfolios as a way to gain kind of constructive exposure to credit in a volatile environment to generate slightly higher yields.
They tend to operate at a bit lower duration so there is naturally going to be more resilience in a low to rising rate environment. Those tend to be the key areas where we see plans making adjustments to their portfolios.
So maybe pivoting off of that, David, so rising inflation, higher rates, clearly these are not friendly to fixed income broadly. But maybe building on some of my comments around high yield, there's obviously sectors of the market that will benefit from the broader reopening, certainly across the broader scope of asset allocation but even within fixed income.
So maybe spend a little time on just kind of giving your thoughts on where an investor can kind of take this environment and translate it into a more resilient portfolio.
David Lebovitz: You know, what's interesting about that question is as I think about building a fixed income portfolio more in an absolute sense or in a vacuum, we actually find ourselves embracing a lot of the assets that you just described can add value to a pension fund in particular.
And so really two big themes when it comes to fixed income going forward. The first is rethinking the composition of your core. And I think that you alluded to this to an extent during your remarks just now. But, you know, (during my life) treasuries have effectively evolved in the commodities. I mean, there's very little yield associated with them and a lot of folks are relying on treasuries for their price action rather than the income that they provide.
And so we think that you need those types of high quality longer duration assets in core fixed income portfolios but complementing that with a little bit of securitized, maybe some higher rated corporate bonds.
We think it's a good way of maintaining that overall defensive posture but picking up a little bit of additional yield at the same time.
And then the other view that we have within fixed income and kind of overarching the approach is one of a barbell where we're comfortable going into extended markets. We're comfortable going into high yield.
We're comfortable going into EM debt, which I know you mentioned, the local currency variety earlier as a potential hedge against inflation. We're comfortable owning these assets.
And we think that much like the equity markets, the Fed is providing a bit of a put here given the current stance and more importantly the outlook for monetary policy. But what we don't want to get wrapped up in is bottom fishing in an effort to generate as much income as possible.
And so you mentioned crossover earlier, you know, to us this is much more about finding BB rated bonds that might get upgraded as the economy comes back online much more so than it is about finding a CCC energy bond that's paying you north of 10% when all is said and done.
And so really taking that barbell approach to the bond market on the one hand, rethinking the composition of the core and trying to embrace high quality assets that offer a little bit more yield than what's available in the treasury market today and then recognizing the need for allocations to those extended sectors but trying to do it with one eye on quality.
And, again, trying to avoid overreaching for yield as we found in the past that that's a good way to get yourself into trouble, particularly when policy supports begin to get withdrawn.
And so, you know, I think where this leaves us, Jared, is just with one final question for you. Given everything that we've discussed today, and we've certainly talked about quite a bit. We've talked about inflation. We've talked about rates, core real assets, commodities, traditional fixed income.
Where do you see some of the most attractive opportunities for institutional investors over the next call it 12 to 24 months? And if you could tie in a little bit about how those views pertain to a broader lower for longer rate environment, I think that that would be a great place to wrap up our conversation.
So what are the best ideas? What is most appealing to you given the outlook from here?
Jared Gross: Yes. I think it's a great place to wind up today. You know, it's interesting to think about the low return environment in which we live today and when we think about long-term capital market assumptions that expect a 60/40 portfolio to generate something north of 4%, which by any historical standard is at the very low end of expectations for a regressively positioned total return style strategy.
And to some extent we are living with the legacy of past benefits, you know, declining interest rates and rising equity valuations are sort of in the rear view mirror now.
We've enjoyed those gains. Asset returns over the last decade have been very strong by and large. But now we have the combination of low yields in the fixed income markets, which are likely to rise.
So future total returns on fixed income are going to be very constrained. And that's not to say, as we've just been discussing, there are some areas that are more constructive than others and it's not a call to abandon fixed income entirely but rather to think a little more subtly about which sectors of the market are going to be resilient in the face of inflation and rate increases and will continue to pay attractive levels of yield and income while we sort of wait for interest rates to normalize.
And at the other end of the spectrum, you've got equities where at least to some extent the rise in valuation has been driven by lower interest rates. It's also been driven by corporate profitability and technology and lots of other good things that are likely to continue into the future.
But as we face a rising interest rate environment, we have to be at least mindful that the total return on those types of assets, whether it's traditional liquid market equity, private equity, you know, kind of long-term total return style investments could be negatively impacted by a rising rate environment. And so what do you do with that information?
Well I think investors for a long time have built portfolios by looking at kind of the wins of the risk distribution. You've got fixed income at the low risk, low return end. And you've got equities at the higher risk, high return end.
And we've sought to kind of blend those two numerically to generate a level of expected return that we think is necessary. And that's where we get the 60/40 portfolio from.
If you think equities are going to return 10 and bonds are going to return 4 and you want to get to 7, it looks a lot like 60/40. That's the kind of historical model.
I think what we're starting to see now is a better appreciation, and for good reason, of assets that kind of fall in the middle of that spectrum. There's different ways to think about that. Some people refer to them as sort of hybrids.
Many of them are what we would traditionally call alternative asset classes. Some of them are more in the speculative credit space like high yield. Some are more private credit, core real assets, hedge funds. You know, there's a lot of different ways to kind of approach that space.
But the basic idea that I think is very consistent with the environment we're in is that we're looking for assets that have higher levels of income generation. So rather than being focused entirely on total return, you're focused on income. And that has two main benefits.
One income almost mechanically reduces the duration of these assets. It makes them less sensitive to interest rate movements.
And even if the underlying investments themselves don't seem to be particularly driven by movements in short-term interest rates, the fact that there is income being produced will make them more stable across time and the income itself serves a number of useful purposes.
If you're a benefit paying institution, it can be used for cash flow purposes to fund those benefits. It also supports opportunistic investing, you know, just as a shorter fixed income portfolio can recoup on into higher yielding bonds as the market moves, a portfolio with a lot of income can look at opportunities that arise across time and reinvest in those opportunities.
And we think that that sort of philosophy of moving from slightly more total return focused to more income focused is a good step in this market environment.
I would also say that if you can find assets that have lower sensitivity to the equity markets and equity beta, that's going to be net positive as a diversification trade and ultimately it allows you to expand the opportunity set beyond simply stocks and bonds.
And as people have historically evolved their portfolios in the alternative space from real estate to private equity to hedge funds to private credit to core real assets, that expanding opportunity set is where there's a lot of opportunity right now to move from tactical or sort of more exotic one-off investments to making it more a core piece of the strategic asset allocation.
And, you know, you mentioned in closing kind of the lower for longer environment. If we are in a low rate environment for a long time, that means broadly speaking that liquid market returns are going to be lower as well.
And so finding alternative sources of returns are really going to be key for investors. And we would just encourage people to think a lot about how big their allocation to alternatives can be.
What is the sort of liquidity constraint that they operate under and how far they can go into alternative assets to expand the scope across which they look at alternative investment categories?
It's not just all long lock private strategies. There's a lot of other ways and vehicles out there to make this work.
And we think ultimately that's going to be key factor in success is owning things that will be, if not a hedge to inflation, resilience in the face of inflation, resilience in the face of rising rates. And they pay you over time in the form of income while you wait for the markets to evolve and see what opportunities come in the future.
David Lebovitz: Thank you for joining us today on JPMorgan's Center for Investment Excellence. If you found our insights useful, you can find more episodes anywhere you listen to podcasts and on our Web site. Thank you.
Recorded on March 23, 2021.
Women: NOT FOR RETAIL DISTRIBUTION: This communication has been prepared exclusively for institutional, wholesale, professional clients and qualified investors only, as defined by local laws and regulations.
The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://am.jpmorgan.com/global/privacy.
This communication is issued by the following entities:
In the United States, by J.P. Morgan Investment Management Inc. or J.P. Morgan Alternative Asset Management, Inc., both regulated by the Securities and Exchange Commission; in Latin America, for intended recipients’ use only, by local J.P. Morgan entities, as the case may be. In Canada, for institutional clients’ use only, by JPMorgan Asset Management (Canada) Inc., which is a registered Portfolio Manager and Exempt Market Dealer in all Canadian provinces and territories except the Yukon and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec and Newfoundland and Labrador. In the United Kingdom, by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other European jurisdictions, by JPMorgan Asset Management (Europe) S.à r.l. In Asia Pacific (“APAC”), by the following issuing entities and in the respective jurisdictions in which they are primarily regulated: JPMorgan Asset Management (Asia Pacific) Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited, each of which is regulated by the Securities and Futures Commission of Hong Kong; JPMorgan Asset Management (Singapore) Limited (Co. Reg. No. 197601586K), this advertisement or publication has not been reviewed by the Monetary Authority of Singapore; JPMorgan Asset Management (Taiwan) Limited; JPMorgan Asset Management (Japan) Limited, which is a member of the Investment Trusts Association, Japan, the Japan Investment Advisers Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency (registration number “Kanto Local Finance Bureau (Financial Instruments Firm) No. 330”); in Australia, to wholesale clients only as defined in section 761A and 761G of the Corporations Act 2001 (Commonwealth), by JPMorgan Asset Management (Australia) Limited (ABN 55143832080) (AFSL 376919).
For U.S. only: If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
Copyright 2021 JPMorgan Chase & Co. All rights reserved.
LISTEN AND SUBSCRIBE