If asked to identify two major trends shaping the future of private client investment, there’s a good chance you’d settle on the growing importance of risk management and the rising popularity of the fund of funds sector.
Indeed, a Lipper report from March shows that this sector has shown a 43 per cent growth in funds under management over the last five years.
In our view, these multi-fund products can provide a total investment solution which can be matched to clients’ risk/reward preferences. They also provide access to a wealth of investment sectors making it possible for investment managers to build diversified portfolios up and down the risk spectrum.
This is why J.P. Morgan Asset Management has created the JPM Fusion Fund of Funds range - a wide-spectrum fund of funds solution, with third party risk-grading at its core. The Fusion Funds range provides a complete investment solution which can offer clients a diversified investment solution that suits their risk/reward preferences.
A broader palette
While the range may play to current trends in the market, it is also deeply resourced and supported by a broader palette of investments and skills.
JPM Fusion Funds have access to our Global Manager Selection Team and to the global funds that are available to them. And, if the team can’t find what they are looking for in the marketplace, they have the strength to have solutions created for them.
Harnessing first class investment expertise
The most important thing about the range is the sheer depth of expertise involved. The funds are created and managed by J.P. Morgan Asset Management, combining specialist skills from both J.P. Morgan Investment Management and J.P. Morgan Private Bank. This gives investors the benefit of 160 years of experience in managing portfolios for wealthy individuals worldwide, across a wide spectrum of asset classes.
A close focus on risk
The investment team uses our proprietary risk management tools to dynamically manage allocations across the funds. Plus, we add an extra level of objectivity, because the funds are also risk graded by external risk consultancy Distribution Technology
Five risk-graded funds
The range offers five fund of fund options, each strategically positioned at a key point on the risk preference spectrum.
• JPM Fusion Income Fund – Dynamic planner rating 3
• JPM Fusion Conservative Fund – Dynamic planner rating 4
• JPM Fusion Balanced Fund – Dynamic planner rating 5
• JPM Fusion Growth Fund – Dynamic planner rating 6
• JPM Fusion Growth Plus Fund – Dynamic planner rating 7
While long-term planning is key, the investment team also enjoy a high level of discretion to match their level of expertise, and can also use a tactical approach to asset allocation. This means they can react to short-term market pressures and shocks quickly, to bridge any gap that appears between long-term market assumptions and current market conditions.
What about charges?
While the underlying funds are subject to their own AMCs and fees, the JPM Fusion Fund range seeks to deliver recognisable value. This includes offering competitive, fully transparent charges.