Asset Management Awards for Excellence 2014/15: Best Fund Provider – Multi-asset Solutions

J.P. Morgan Asset Management

Henry Tong, executive director, head of private bank distribution, J.P. Morgan Asset Management

Henry Tong, executive director, head of private bank distribution, J.P. Morgan Asset Management

In a market that would have most believe that Asian HNWIs with self-directed ways would rather implement asset allocation and conduct their own daily trading, multi-asset solutions have emerged as a pleasant surprise for both private banks and asset managers.“If you asked me five years ago, I don’t think anyone would buy a multi-asset fund,” says Henry Tong, executive director, head of private bank distribution, Asia J.P. Morgan Asset Management. “But now, the growth of interest has surged phenomenally and our clients are increasingly looking to allocate a core holding of their portfolio in such a solution, both for good times and bad times.”

One hurdle faced by private banks is to persuade their Asian clients of the benefits of delegation, active management and global diversification through asset allocation. J.P. Morgan attempted to tackle this issue by introducing a fund management simulation software to give relationship managers a first-hand experience of how difficult it was to construct an asset allocation, especially when dynamically adjusting, which is essential in current markets. This was easier said than done. Lacklustre performance of virtual portfolios drove relationship managers and their clients to better grasp the value of multi-asset investing and entrust the duty to the asset management industry.

The American asset manager looked to further upgrade its multi-asset offering by rolling out nine other currency-hedge share classes including one in renminbi – a feature introduced to cater to the region’s growing Chinese yuan deposits, which are being underutilised and suffering a cash drag.

In a space that is growing much more competitive, J.P. Morgan Asset Management managed to stand out with its mission to deliver conservative returns with low volatility in all market conditions through its Global Multi-asset Group (GMAG) – a team of more than 100. With a globally integrated approach to servicing clients and an eye for enhancing the offering to better entice various client segments, J.P. Morgan Asset Management was voted by gatekeepers at Asia’s private banks as the Best Fund Provider – Multi-asset Solutions.