New imperatives to drive better client solutions

Being able to meet the fast-changing needs of investors with a broader yet focused and relevant set of capabilities and solutions is essential in such a dynamic investment landscape.

More specifically for asset owners, this has meant delivering on a range of requirements and preferences. From providing timely insights to tackle market headwinds and enabling access to alternative assets, to fostering sustainable investment opportunities and enhancing the client experience via digital tools, JPMAM’s Hong Kong business has forged a growth strategy that has enabled it to remain resilient.

“We experienced another very successful year in 2021 with institutional clients, with record flows in AUM as well as onboarding MPF trustees onto our platform and growing in other key areas,” said Elisa Ng, head of J.P. Morgan’s asset management unit in Hong Kong, and head of the Hong Kong funds and institutional businesses.

This has all stemmed from what Ng describes as the firm’s overarching priority during such an uncertain macro and market environment: the need to stay connected with clients.

Its decade-old Market Insights programme is a case in point. The goal is to help investors be equipped, every quarter, with the right information on key trends and developments, so they can adjust portfolios accordingly. “We give investors the data to make actionable investment decisions,” said Ng. Led by chief Asia market strategist Tai Hui, the Asia Market Insights team has local footprints in various APAC markets, including Hong Kong, to provide timely and locally relevant insights. 

Further, to deepen its service and coverage to insurance clients in Hong Kong, James Peagam, the firm’s global head of insurance solutions, relocated to Hong Kong last year. This reflects a commitment to strengthening the advisory and analytics offerings to Asia insurance clients, particularly in relation to asset-liability, capital, regulatory, tax and accounting considerations.

Carving out new capabilities

As investors have increasingly sought diversification and more reliable risk-adjusted returns via alternatives, JPMAM has also expanded its investment capabilities with this in mind.

In June 2021, the firm acquired Campbell Global, a leading player in forest management and timberland investing. Not only did this help fill an asset class gap, but also aligns with the manager’s deepening commitment in sustainable investing.

That same month also saw the launch of J.P. Morgan Private Capital, which includes a new growth equity investment arm and an existing private debt business. “This is committed to providing customised solutions for early and growth stage companies across the capital structure, and to creating unique opportunities for institutional clients,” explained Ng.

At the same time, the firm expanded its private credit platform with global performing credit. This broadened its ability to offer direct equity and debt investment capabilities to clients and corporations.

Outcome oriented: harnessing the power of JPMAM’s alternative investment platform

Source: J.P. Morgan Asset Management, as of March 31, 2022. AUM figures are representative of assets managed by the J.P. Morgan Global Alternatives group, and include some AUM managed by other J.P. Morgan Asset Management investment teams. Due to rounding, data may not always add up to the total AUM.

Standing out in sustainability

The integration of Campbell Global is just one example of recent efforts by JPMAM to advance its sustainable investing commitment.

Over the past 12 months, the firm has significantly built out its Asia Pacific sustainable investing team, including six Hong Kong-based members with a dedicated practice across investment stewardship, research and data, and client solutions.

“We are seeing an increased awareness and demand for sustainable investing, with huge inflows,” said Ng. The firm caters to this, she added, by introducing dedicated ESG solutions for Hong Kong investors, including the JPMorgan Emerging Markets Sustainable Equity Strategy, and the JPMorgan Sustainable Infrastructure Strategy. Plus, sustainability is fully integrated into the firm’s overall investment process. All demonstrate the commitment of the firm to tailoring global sustainable investing capabilities and insights for the Hong Kong market.

JPMAM also made equity investment in MioTech, a Hong Kong-based fintech using artificial intelligence (AI), to accelerate its insights into China’s ESG landscape with greater access to a wide and evolving range of alternative China ESG data sets.

Towards more tailored solutions

That decision also highlights the growing role of digitalisation within the firm to support its investment decision making and enhance the client experience.

Recent initiatives have included leveraging the ability of its proprietary natural language processing tool, ThemeBot, to screen thousands of stocks and more efficiently analyse hundreds of millions of data sources in a short period of time.

Among the outcomes last year from implementing ThemeBot was the launch of the firm’s Future Transition Multi Asset Strategy – which Ng describes as a thematic multi-asset strategy in Hong Kong with exposure to global opportunities in future transition themes such as smart city and medical technology.

JPMAM has also added more digital tools specifically for institutional and corporate clients. “We grew our Morgan Suite which includes Morgan Institutional, an advanced portfolio analytics platform tailored for institutional clients, and global liquidity management platform Morgan Money, expanding support for key products and scaling to Asia Pacific clients,” said Ng.

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Disclaimer

The manager seeks to integrate environmental, social and governance (“ESG”) factors in the investment process. ESG integration is the systematic integration of material ESG factors in company/issuer selection through research and risk management. It involves proprietary research on financial materiality of the ESG factors in relation to the relevant company/issuer and discretion to invest regardless of whether the company/issuer may be positively or negatively impacted by the ESG factors. Integration of ESG factors does not imply ESG factors as the sole investment focus. Risk management does not imply elimination of risks. Please refer to the offering documents for more details on the ESG approach.

Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current and future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.