Research explores opportunities in multi-alternative strategies, core private infrastructure, private equity and commercial real estate
NEW YORK, January 16, 2024 /PRNewswire/ — JP Morgan today released its 2024 outlook for the alternative investment landscape. www.jpmorgan.com/altsoutlook.
Uncertainty has remained a central theme in financial markets over the past few years. Rising inflation, rapid interest rate hikes, slowing global growth, heightened geopolitical risks, and heightened stock and bond market volatility have dramatically changed the investment landscape, and alternative investments have not been immune.
To help investors take advantage of these market dynamics, JP Morgan reached out to experienced investment leaders from around the country 213 billion dollars Global Alternatives platform to share their 12- to 18-month outlook for several alternative investment markets. Their insights into the trends, risks and opportunities impacting multi-alternative strategies, core private infrastructure, private equity and commercial real estate are presented in separate papers within the study.
“The case for investing in alternatives remains as strong as ever,” he said Anton Peel, Global Head of Alternatives for JP Morgan Asset Management. “These assets have historically helped investors diversify traditional portfolios by pursuing investment returns largely independent of publicly traded equity and bond markets, potentially helping to diversify portfolio correlations, reduce overall volatility, broaden sources of investment returns, mitigating inflation risk and raising both absolute and risk-adjusted productivity.”
Looking ahead to 2024, the firm expects to see increasing demand for alternative investments, driven by three broad themes:
Displacement: Most of 2023 saw a slowdown in private market activity, which generally put pressure on the prices of many alternative assets. This has opened up significant investment value in some segments and could lead to a compelling harvest in 2024, especially if the current rate-tightening cycle ends up at or near its peak.
Democratization: Investment innovation continues to expand access to alternative investments through a growing range of strategies and structures available to a much greater number of investors.
Diversification: The investment markets of the past few years have shown the limits of relying solely on traditional stocks and bonds to provide adequate portfolio diversification in the current market cycle. Alternative investments can offer solutions to exploit new, dynamic investment opportunities designed to help better balance a portfolio’s risk/return exposures.
More information about JP Morgan’s research and alternative offerings can be found at: www.jpmorgan.com/altsoutlook
About JP Morgan Asset Management
JP Morgan Global Alternatives is the alternative investment arm of JP Morgan Asset Management. With more than 60 years as an alternative investment manager, 213 billion US dollars in assets under management and more than 800 professionals (to December 31, 2023), JP Morgan offers strategies across the spectrum of alternative investments, including real estate, private equity, private credit, hedge funds, infrastructure, transportation, timber and liquid alternatives. Operating from offices across America, Europe and Asia and the Pacificour independent alternative investment vehicles combine specialist knowledge and exceptional focus with the global reach, vast resources and powerful infrastructure of JP Morgan to help achieve each client’s specific objectives.
JP Morgan Asset Management, with assets under management 3.1 trillion dollars (as of 31.12.2023), is a global leader in investment management. JP Morgan Asset Management’s clients include institutions, retail investors and high net worth individuals in every major market around the world. JP Morgan Asset Management offers global investment management in equities, debt instruments, real estate, hedge funds, private equity and liquidity. For more information: www.jpmorganassetmanagement.com. JP Morgan Asset Management is the marketing name of the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in United States of America (“US”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and 328 billion dollars in the share capital to December 31, 2023. The firm is a leader in investment banking, consumer and small business financial services, commercial banking, financial transaction processing and asset management. Under the JP Morgan and Chase brands, the firm serves millions of clients in the US and many of the world’s most prominent corporate, institutional and government clients. About JPMorgan Chase & Co. is available at www.jpmorganchase.com.
SOURCE JP Morgan Asset Management
