An introduction to our investment process
J.P. Morgan Asset Management aims to provide investors with a comprehensive choice of funds, so that they can create the portfolio that best suits their individual investment targets, risk profile and time horizon.
We therefore offer one of the biggest ranges of pooled funds available: around 100 Luxembourg SICAV funds, over 30 UK OEICs and other specialist funds. Together these funds form a product range covering all major geographic markets, asset classes, investment styles, specialist sectors and risk profiles.
In addition to our SICAV and OEIC funds, we also manage a wide range of investment trusts. We have 22 investment trusts* ranging from the UK to emerging markets like China and Russia.
*Including one investment company
In order to maximise performance throughout the investment cycle, JPMAM does not have one single, investment approach. Instead, we offer multiple investment processes, which use materially different but complementary investment methodologies and styles.
Analyst Driven (Dividend Discount Model)
Fundamental analysis of company's future cash flows by a team of experienced career analysts, using a proprietary Dividend Discount Model (focusing on the medium term).
Manager Driven
Fundamental analysis of the future earnings potential of companies to see how much of this potential is not yet factored into current share prices. There is a strong emphasis on company visits by fund managers, who then employ a bottom-up, stock picking approach, with the majority of alpha generated from stock selection rather than asset allocation.
Behavioural Finance
An investment philosophy based on research into human behaviour in financial markets. Behavioural finance uses a multi-factor model to create portfolios on the basis of key factors such as price momentum, earnings momentum, value and growth, which are known to be long term sources of alpha.
Fixed Income
Our unique fixed income investment process works by allocating exposure across the three primary drivers of fixed income returns: interest rates, credit markets and currency. The process uses fundamental analysis, quantitative models and qualitative inputs to forecast performance in the world's major bond markets. These forecasts are then formulated in duration, country and yield-curve strategies, which dictate the positioning within our portfolios.
Total Return
This is a highly flexible investment strategy which offers investors the chance to earn higher returns than cash, while aiming to minimise the risk of losing money. In order to achieve this aim, the process uses expert macroeconomic analysis to allow it to switch between bonds, cash and equities depending on which asset class is expected to perform the best in the prevailing economic and market environment. Individual stock selection is then based on rigorous bottom-up research.
