InvestmentsMay 9 2013

JP Morgan sets out explanatory investment guide for customers

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The 70-page document, Guide to the Markets, looks at top investment themes driving the markets, with a collection of charts. These can help advisers explain market conditions to their clients, how trends are affecting their portfolios, with the back up of statistics to help investors understand what is happening.

For example, the guide looks at the performance of the FTSE100, which has risen by about 10 per cent since the start of the year, while the S&P500 Index has hit record highs.

It sets out why managers at JPMAM think the UK and US equity rallies have more distance to go due to the increase in houshold wealth, a recovering housing market and optimistic consumers.

However, the report warns investors that there is a potential fiscal drag due to the US’s deficit reduction policies.

It also outlines that yields in fixed income will eventually rise and interest rates should be watched carefully – a chart sets out the impact of a 1 per cent rise on the price and total return of various bond indices.

Andrew Goldberg, global market strategist for JPMAM, said: “Regardless of the investment strategy or asset class an adviser is discussing with their client, Guide to the Markets can help bring clarity and context to the trends and themes moving markets.”

Keith Churchouse, director of Surrey-based Chapters Financial, said: “JP Morgan Asset Management is a very proactive organisation – particularly in the adviser market – in trying to offer help and support to advisers. We live in unchartered times at the moment and although it’s very relieving for many people to have seen their portfolios go up significantly over the last six months, that doesn’t mean there won’t be changes afoot.”