J.P. Morgan Asset Management
In the two months following Trump’s election win, US$41.5 billion was pulled out of bond funds and US$70 billion inserted into equity funds, according to one Wall Street report, motivated by expectations of higher growth and the impact of inflation on bond prices. At the same time, others were labeling reports of a great rotation from bonds to stocks as “fake news”, arguing that investor positioning would constrain new holdings.
MSCI World and the Barclays Global Aggregate Bond Index posted +8.15% and +2.65%, respectively, with both benchmarks impacted by a year characterised by two distinct halves. But the two asset classes travelled opposing paths. An early year growth-linked slump and the surprise Brexit outcome dragged equities south, before Trump’s victory and his reflationary promises helped the asset class recover. In contrast, stabilising commodity prices tightened credit spreads in fixed income markets, but fears of Trump-driven inflation and rate hikes led to material losses.
J.P. Morgan Asset Management continues lead multi-asset investing. With over 40 years of experience in developing flexible, outcome-oriented, macro thematic and convertibles solutions, the American fund giant, which leverages from a global network of 100 investment professionals, has nearly US$200 billion in AUM in multi-asset investing.
Asia’s gatekeepers have once again selected J.P. Morgan Asset Management as Best Fund Provider – Multi-Asset Solution.