Traditionally investors have used equities, bonds and cash as the foundations of a balanced investment portfolio. However, with the advent of new investment techniques and with investors looking for new opportunities for new sources of return, more esoteric classes have grown in popularity. Learn here how these new asset classes are able to bring diversification to your portfolio.
Global Factor Return: Is Japan a different animal?
It is important to understand the differences in market characteristics across regions and to adopt different approaches when employing factor investing strategies. Factor returns behave differently around the world, and in this paper we focus on the behavior of factor returns in the Japanese equity market.
Absolute return fixed income outlook 2013: Scaling the cliffs
2012 was kind to fixed income investors who benefited from declining rates and tightening spreads. As rate and credit betas become increasingly exhausted, investors will have to mute their expectations for future fixed income returns.
Diversification – still the only free lunch?
By approaching risk parity using factor risk premia building blocks, this can address the core concerns around traditional risk parity and also offer a very attractive approach to strategic asset allocation.
Opportunity seized, opportunity missed
We explain why we believe that distress and investors' extreme risk aversion drive a rich European property opportunity set for experienced investors
The case for income in emerging markets
The words 'emerging markets' and 'dividend play' have not commonly been associated in the past, but the simple fact is that the combination of income and growth has been a powerful source of total returns in emerging markets. Today, emerging markets are an increasingly sustainable and stable source of income because corporates are able and willing to pay dividends. This is true across a diverse range of sectors and countries.
Mid-year outlook: 2012 guide to identifying opportunities across the fixed income markets
Portfolio manager Bill Eigen explains why opportunities exist for patient bond investors with a relative value approach, liquidity and command of both traditional and alternative investment methods.
The Realisation. A new world. A new Normal. A tectonic shift.
The traditional mix of equities and bonds has long held unchallenged sway in pension fund and private investor portfolios, with fixed income offering yield and lower volatility and equities delivering earnings-driven capital appreciation. Recent shifts in allocation have largely been tactical (ie, cyclical) moves between the two or, more recently, a gradually increasing strategic (ie, structural) tilt to alternatives, including real estate, infrastructure and private equity.
Focus on emerging market corporate debt
Despite the global uncertainty, emerging market debt has managed to hold on to positive returns so far in 2012. In this paper, Alain Defise examines the macroeconomic backdrop and the potential developments in the coming quarter, assessing their likely impact on emerging market debt. He then focuses on emerging market corporate debt, which has been among the best-performing fixed income sub-asset classes over the year to date.
European Pensions Emerging Markets Roundtable
A panel of industry figures are gathered by European Pensions to discuss the best approach to investing in Emerging Markets.
"Keepin' it real" Inflation risk as an asset allocation problem
Our Global Multi-Asset Group (GMAG) explores the challenges of managing inflation risks across a variety of environments.
The fixed income sweet spot
Although government bond yields remain at very low levels, the broader fixed income universe has much to offer at present. Indeed, record-low interest rates and central bank liquidity injections are creating very positive conditions for bond investing. In this paper, Nick Gartside looks at the factors driving bond markets, examines the outlook and discusses the opportunities on offer in the current fixed income sweet spot.
Missing the target: Eurozone bailouts and TARGET2
In this paper, Dan Morris sheds some light on the debate over TARGET2 balances and eurozone bailouts.
Corporate bonds and European sovereign debt after the LTRO
2011 was an eventful year for fixed income investors as the eurozone debt crisis produced dislocations in the sovereign and corporate bond markets. In this paper, David Tan and Lisa Coleman discuss the events that drove markets last year, examine the policy responses to the crisis and look at what lies in store this year.
The search for income: A global dividend strategy
In this new low growth, low yield environment we look at how there are opportunities to generate a sustainable yield from an equity portfolio.
Long-Term Capital Market Return Assumptions
We share our consolidated best thinking of the long-term outlook for markets developed by our Global Multi-Asset Group, Institutional Asset Management Strategy team, Private Bank Portfolio Construction team and a wide range of investment specialists across the firm and around the world.
Price of Inflation
Paul Sweeting and Dan Morris take an in depth look at inflation to evaluate the threat to the UK economy.
Investing in Diversified Growth and Multi-Asset Funds report
The second annual online report, published by ClearPath Analysis, where pension sponsors and their scheme representatives analyse the issues faced in utilising diversified growth and multi-asset funds.
Trustees do not want to follow the herd – Financial Times roundtable
How comfortable are trustees in getting to grips with alternatives, not only in terms of asset classes but also as an overall investment strategy?
Alternative asset allocation industry roundtable with Pensions Age
J.P.Morgan Asset Management released the findings of its Alternative Asset Survey 2010: Uncovering the latest trends in alternative investments in September. Based on those findings, a panel of experts, in association with J.P.Morgan Asset Management and Pensions Age, met on 12 October in Central London to provide their insight on alternative asset allocation by UK pension schemes.
Japan Topics: New prime minister, new manifesto, and the upper house election.
Naoto Kan, who was finance minister in the Hatoyama cabinet, has been elected as the new leader of the ruling Democratic Party of Japan (DPJ). As a result, Mr Kan became Japan's 94th prime minister on 4 June. Mr Kan’s appointment instantly boosted popular support for the Democratic Party of Japan.
A compendium of investment perspectives which cover international and global opportunities in equity, fixed income, real assets, hedge funds and asset allocation.
The State of the Hedge Fund Industry
Hedge funds were not exempt from the carnage that rocked markets in 2008. John Anderson traces the background to the declines and then discusses where we are now, the likely effect posited changes will have on the industry and why hedge funds remain important as a source of risk adjusted returns.
It may not be too late for underweight equity portfolios to rectify these positions and benefit from further stock upside
Keep up to date with the views and analysis on events across world financial markets from J.P. Morgan Asset Management's strategists.