JPMorgan Global Macro Opportunities Fund- multi-asset macro thematic fund targets positive returns in various market conditions

Investment Objective

To achieve capital appreciation in excess of its cash benchmark by investing primarily in securities, globally, using financial derivative instruments where appropriate.

Investment Process

The Fund’s investment process is driven by the investment team’s proprietary macroeconomic research agenda. The process is best summarized by the diagram below. The added advantage is the investment team’s ability to leverage JP Morgan’s extensive global platform for insights and reach. The team is regularly assessing existing and new investment strategies via daily meetings, weekly macro discussion, monthly core views updates and then also a quarterly strategy summit.

A macro theme must be sufficiently different to existing themes already in the portfolio and the team needs to be able to measure the trends of changes it captures.

Investment strategy. A strategy can be sourced from anywhere including the investment team or JP Morgan’s broader global investment network. Each recommended strategy has a clearly defined macro-theme. The team categorizes each strategy into two broad categories – Traditional (e.g. long-only exposure) and Sophisticated (e.g. derivatives, directional).

Portfolio construction and management

Portfolio Construction & Management. The lead portfolio manager has the ultimate decision-making power on which investment strategies are included in the portfolio, the team does generally tend to follow a consensus approach. The portfolio can have exposure across all major asset classes – equity, fixed income, commodities, currency and advanced derivatives – and exposure to both developed and emerging markets. The portfolio at any one time is expected to be made up of 6 to 10 macro-economic themes, which can equate to between 20 – 40 strategies. This means the overall portfolio can hold at any one time, typically, 100-150 securities. While monitoring the macro is continual, much of the macro debate is at a monthly meeting, where the teams might discuss risks to their core theses and potential paths of evolution in the macro landscape, as well as making changes to the macro themes, including removing or adding a new theme.

Investment Team

Shrenick Shah: Shrenick Shah, managing director, is head of the Macro Strategies team at J.P. Morgan Asset Management, based in London. An employee since September 2010, Shrenick previously worked in the equity divisions at Deutsche Bank and Credit Suisse. Shrenick obtained a M.Sc. in Econometrics and Mathematical Economics from the London School of Economics.

Benoit Lanctot: Benoit Lanctot, Executive Director, is a portfolio manager in the Macro Strategies team, based in London. An employee since July 2011, Benoit previously worked as a senior analyst in the Convertible Bond team within Multi-Asset Solutions, responsible for the implementation of the fundamental analysis framework with global coverage. Prior to that, Benoit worked in investment banking for the Diversified Industries Group of Scotia Capital Inc. based in Montreal, Canada. He obtained a B.BA with a major in Finance from HEC Montreal and a Masters in Finance from London Business School. Benoit is a CFA and a CAIA charter holder.

Josh Berelowitz: Josh Berelowitz, executive director, is a portfolio manager in the Macro Strategies team, based in London. An employee since September 2011, Josh has been focused on the macro portfolios since inception of the strategy in November 2012. Josh obtained a B.Sc. in Economics from the University of Nottingham and is a CFA charter holder.

Virginia Heriz: Virginia Heriz, executive director, portfolio manager in the Macro Strategies team, based in London. An employee since November 2019, Virginia previously was a portfolio manager at Aberdeen Standard Investments where she was responsible for tactical asset allocation portfolios and segregated multi asset mandates. Prior to that, Virginia was an analyst covering global financials at Martin Currie Investment Management. Virginia has a Diplôme d’Ingénieur from the École Nationale Supérieure des Telecommunications, Paris and a Masters in Telecommunications Engineering form the Universidad Politécnica de Madrid.

Fund Performance and Positioning

About Fund

The Fund employs a macro-thematic investment framework to achieve capital appreciation in excess of its cash benchmark by investing primarily in global securities, with the ability to use financial derivatives. The Fund targets +7.0% p.a. annualized over the medium term (net of fees) and/or above the Bloomberg AusBond Bank Bill Index, with a volatility of less than 10% p.a.

(Source: Banyantree and Investment centre)

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