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This video opens with a title beside a brown-haired woman in a patterned scarf and blazer:
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Why Manager Selection Matters for Alternative Investments
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A J.P. Morgan Wealth Management logo remains in the corner.
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A bold disclosure in a text box reads:
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INVESTMENT AND INSURANCE PRODUCTS:
- NOT A DEPOSIT
- NOT FDIC INSURED
- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- NO BANK GUARANTEE
- MAY LOSE VALUE
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Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments involve greater risks than traditional investments and should not be deemed a complete investment program. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. The value of the investment may fall as well as rise and investors may get back less than they invested.
Kristin Kallergis Rowland:
Alternative investments may now play a key role in investment portfolios.
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Identifying text appears beside the speaker:
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Kristin Kallergis Rowland
Global Head of Alternative Investments
J.P. Morgan Wealth Management
Kristin Kallergis Rowland:
However, alternative investments may be riskier than traditional stock and bond investments. So, selecting the right strategy is critical.
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Three manager icons appear with lines connecting them to items including a building, credit card, airplane, multidirectional arrows, and a briefcase. Arrows flow from the items to the managers, and a heading appears:
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Public and Private Markets
Kristin Kallergis Rowland:
Alternative investment managers draw from a larger pool of potential investments, seeking opportunities in both the public and private markets. Each manager introduces a unique element that needs to be understood before entrusting them to navigate an underlying sub-asset class or market on behalf of investors.
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A graph appears, titled: ‘We see a noticeable dispersion in returns.’ The vertical axis ranges from -10% to positive 30%, while teal bars with gray averages appear representing various alternative investment strategies. U.S. Fund Global Equities shows returns at 9.7% Top Performing and 7.8% Bottom Performing; U.S. Fund Global Bonds at 1.2% Top Performing and -0.4% Bottom Performing; U.S. Core Real Estate at 7.3% Top Performing and 5.8% Bottom Performing; U.S. Non-core Real Estate at 13.6% Top Performing and -3.0% Bottom Performing; Global Private Equity at 22.9% Top Performing and 2.0% Bottom Performing; and Hedge Funds at 13.8% Top Performing and -0.4% Bottom Performing.
Kristin Kallergis Rowland:
As a result, we see a notable dispersion in the returns of top- and bottom-performing alternative investment managers, which is why manager selection is so critical.
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The heading changes to: ‘Why manager selection is so critical.’
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Source: Burgiss, NCREIF, Morningstar, PivotalPath, J.P.Morgan Asset Management.
Global Large Cap Equities and Global Bond are based on the Morningstar Global Large Stock Blend and Global Bond (not hedged) categories respectively.’ Asterisked text continues: ‘Manager dispersion is based on annual returns over a 10-year period ending 3Q 2024 for Hedge Funds, U.S. Core Real Estate, Global Large Cap Equities and Global Bond. U.S. Non-core Real Estate, Global Private Equity and Global Venture Capital are requested by the 10-year internal rate of return (IRR) ending 2Q 2024.
Data are based on availability as of November 30, 2024.
Past performance is no guarantee of future results. It is not possible to invest in an index.
Kristin Kallergis Rowland:
We use a disciplined process for selecting alternative investment managers. Our global team of over 100 specialists takes a hands-on approach to evaluating managers, drawing on insights and research from across the firm to inform their analysis.
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Text appears as professionals compare graphs and charts:
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Our global team of over 100 specialists, takes a hands on approach to evaluating managers
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Small print reads:
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The organizational construct above is for illustrative purposes and is subject to change. Organization depicted as of November 2023.
Kristin Kallergis Rowland:
This helps them identify high-conviction strategies. It also helps us focus on managers who are investing in innovative companies in growth areas like healthcare or artificial intelligence. The result of this process is a curated list of investments that align with the common goals from managers who share our commitment to investor success. It’s important to remember that every investment comes with its own set of risks. Strategies that worked in the past might not work in the future. That’s why it’s crucial for investors to choose the investments that fit their unique needs and objectives.
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Legal disclosures appear:
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The views, opinions and estimates expressed are those of the speakers and may differ from other areas of J.P. Morgan; such information may change without notice or may not occur. This content is for informational purposes, it is not presented as J.P. Morgan Research and should not be treated as advice or a recommendation to buy or sell any investment. The information this content is based is current and believed to be accurate. Investors should obtain relevant information before making any investments (or investment decisions), which include obtaining appropriate legal, tax, or accounting advice. JPMorgan Chase & Co. and its affiliates do not provide this type of non-investment guidance.
Investing in securities involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Outlooks and past performance is not a guarantee of future results.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors.Alternative investments involve greater risks than traditional investments and should not be deemed a complete investment program. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. The value of the investment may fall as well as rise and investors may get back less than they invested.
Asset allocation/diversification does not guarantee a profit or protect against loss.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.
Copyright 2025 JPMorgan Chase & Co.
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