Industry Voice - Diversified growth funds: The asset allocation all-rounders

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Industry Voice - Diversified growth funds: The asset allocation all-rounders

MAINTAINING A BETTER BALANCE

Diversified Growth Funds (DGFs) take a range of approaches as broad as the name suggests. At the passive end of the spectrum, they can be packaged exposures to a pre-set asset allocation with minimal active management, in terms of asset allocation or security selection. At the other end of the spectrum, they can resemble hedge funds in the range and complexity of strategies they offer. In between, DGFs can have various levels of active security selection and asset allocation combined with strategic market exposures.

Depending on their particular flavour, DGFs will have different roles in a pension portfolio. The JPMorgan Life Diversified Growth Fund offers investors access to an actively managed, low-cost multi-asset solution (see Exhibit 1). We identify our DGF as a "core" strategy, investing for long-term growth across a broad range of asset classes while offering daily liquidity to clients. This article describes the potential benefits of our DGF in the context of UK pension plans, both defined contribution (DC) and defined benefit (DB). We also describe and seek to quantify some of the long-term risks that may arise from the active asset allocation process.

 

 

FOR PROFESSIONAL CLIENTS ONLY - NOT FOR RETAIL USE OR DISTRIBUTION

This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management's own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that 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. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. Whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name 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 EMEA Privacy Policy  www.jpmorgan.com/emea-privacy-policy.

Life funds are provided by JPMorgan Life Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.  Registered in England No: 185175. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.  LV-JPM52306 | 09/19 | 0903c02a826accae

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