Insights Now

Alternative Realities: Powering portfolios with alternatives

Watch the video version on YouTube.

In this episode, Dr. David Kelly is joined by Ash Williams, Vice Chair of J.P. Morgan Asset Management. Ash served as Chief Investment Officer and Executive Director of the Florida State Board of Administration, where he oversaw $250 billion in assets. He has extensive experience as an institutional investor in both public and private markets. Throughout their conversation, they cover a range of topics surrounding the importance of alternatives in a portfolio and the best approach to constructing a portfolio with alternatives.

Timestamps:

• Introduction (00:00:00)
• Risk and return within alternatives (01:27)
• Allocating capital toward alternatives (04:37)
• Process of picking specific alternatives (06:30)
• Institutional vs. individual portfolio allocations to alternatives (13:01)
• Importance of manager selection (15:40)
• Opportunities in alternatives today (17:06)

Resources:

For more resources on Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

Alternative Realities: Investing in the future of healthcare

Watch the video version on YouTube.

On previous episodes, we’ve discussed the muted return outlook for a traditional 60/40 portfolio, and the return enhancing potential of Private Equity and Venture Capital. As companies wait longer to IPO, investors are turning to private markets for access to the fastest growing part of a business’s lifecycle. In this episode, we’re going to explore the opportunities in private healthcare and biotechnology. Dr. David Kelly is joined by Gaurav Gupta, Managing Partner of Life Science Private Capital within J.P. Morgan Private Capital. He is a neurosurgeon turned investor, and we’re so excited to have him here to discuss the trends he’s seeing in the market.

Timestamps:

• Typical healthcare investments (1:01)
• Investing in private healthcare vs. public healthcare (5:42)
• Private equity exits and valuations in healthcare (9:13)
• AI and drug development in healthcare (10:56)
• Regulatory changes within healthcare investment (16:06)
• Best opportunities in healthcare investment (18:33)

Resources:

• For more resources on Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing
• Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

Alternative Realities: Democratizing access to alternatives

Watch the video version on YouTube.

On previous episodes, we’ve discussed what’s called the “democratization of alternatives.” Put simply, alternatives have become more accessible to individuals as the investment vehicles have evolved to address pain points like high minimums and long lockup periods. Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, is joined by Anastasia Amoroso, the Chief Investment Strategist at iCapital. The platform is designed to help clients navigate the world of alternative investments. We’ll hear from Anastasia about what iCapital does to help individuals feel confident investing in alternatives, as well as her perspective on the trends we’re seeing in the market.

Resources:

For more resources on the Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Taxes, deficits and federal debt, “Oh my!”

Watch the video version on YouTube. 

The U.S election is just a few short weeks away, and many investors are picking through campaign-trail noise to decipher what policies each administration would pursue and their implications. With both Former President Trump’s and Vice President Harris’s campaigns promising hefty amounts of spending but few clues on how it will be funded, the longer-term trajectory for taxes, the deficit and federal debt is largely uncertain, but must be addressed. According to the Congressional Budget Office, U.S. debt held by the public as a percent of GDP is expected to increase from a likely 98% in fiscal 2024 to over 120% in 2034. This assumes that provisions from the Tax Cuts and Jobs Act sunset as scheduled and increase taxes by $4 trillion at the end of 2025. If these tax cuts are extended, however, debt held by the public could rise to 130% of GDP over the same period. Regardless, policies from either side of the aisle will impact the fiscal health of the United States, and as a result, the balance of risks and opportunities that investors must consider when building portfolios.

Gabriela Santos, Chief Market Strategist for the Americas, is back with Dr. David Kelly, Chief Global Strategist here at J.P. Morgan Asset Management, to discuss the different paths forward for fiscal policy.

Resources:

For more resources on the U.S. elections visit our Election Insights hub

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

 

The past, present and future of Fed independence

Watch the video version on YouTube. 

Within our financial system, the idea that the Federal Reserve should operate as an independent entity is fundamental. Importantly, the Federal Reserve is a political institution that is accountable to Congress, but also to the public, and its independence ensures it can conduct monetary policy in a way that it perceives to be in support of its dual mandate without undue political pressures. However, some candidates on the campaign trail have expressed interest in giving other branches of government a say in the Fed’s decision-making process, meaning that this election could have major implications for the ways in which monetary policy is conducted, its efficacy and the public’s confidence in the central bank.

To explore the implications of any changes to the Federal Reserve’s independence, Gabriela Santos is excited to be back with Dr. David Kelly, Chief Global Strategist here at J.P. Morgan Asset Management.

Resources:

For more resources on the U.S. elections visit our Election Insights hub

Listen to the audio version of the Insights Now podcast: Apple Podcasts | Spotify

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Alternative Realities: Navigating alternatives as an individual investor

Watch the video version on Youtube.

In this episode of Alternative Realities, we’re going to be exploring the alternatives landscape from the perspective of the individual investor. Historically, these asset classes have been the domain of institutional capital, but the structure of alternative investment vehicles is evolving in ways that make them more accessible. Not only do individual investors have more access to alternatives, they also may have a greater need as the traditional 60/40 portfolio faces challenges like elevated valuations, positive stock-bond correlation and a negative real yield. Additionally, as more companies are choosing to stay private for longer, alternatives allocations are becoming increasingly necessary to access these high-growth areas of the market.

Dr. David Kelly, Chief Global Strategist is joined by Kristin Kallergis, the Global Head of Alternatives for the J.P. Morgan Private Bank, to discuss all of these themes. Kristin’s team manages $180BN of private wealth across a wide array of alternatives solutions, giving her unique insight into the evolution of this market.

Timestamps: Introduction (00:00), Individuals vs. Institutions investing in alternatives (1:15), Liquidity needs within alternatives for individual investors (3:10), Selecting the right manager for alternatives (4:59), Popular asset classes within alternatives for individual investors (6:21), Niche asset classes (8:02), Private equity cash flow (10:12), Alternatives and secular themes (13:06)

Resources:

For more resources on the Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

The ripple effects of regulation

Watch the video version on YouTube. 

Federal government regulatory policies have the potential to reshape both the economic landscape and the investment opportunity set and both candidates for president have expressed strong opinions on regulatory issues.  However, their attitudes on regulatory oversight appear to vary across industries and issues affecting the economy and society.  In addition, their power to implement regulatory change is limited both by political realities and the courts.  For investors, it is important to remember that it is policy, not politics, that matters most for markets and the economy. However, history suggests that regulatory policy may not always impact markets in the ways we’d expect.

To dive deeper into proposed regulatory policies and their potential impacts, Gabriela Santos, Chief Market Strategist for the Americas, is joined by Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management.

Resources:

For more resources on the U.S. elections visit our Election Insights hub

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Alternative Realities: Unlocking value in private markets

Watch the video version on YouTube.

With comprehensive oversight and deep expertise in a diverse array of investment vehicles, including real estate, real assets, hedge funds, private equity, private credit and liquid alternative solutions, our mission is to demystify these often lesser-known asset classes. By providing clear, real-world examples, we aim to bridge the knowledge gap and empower investors to make informed decisions. Our goal is to bring these complex investment opportunities to life, showcasing their strategic value and how they can be effectively integrated into a diversified portfolio to achieve long-term financial objectives.

Join us as Dr. David Kelly is joined by Brandon Robinson, Deputy Head of Private Markets, to discuss the different ways that adding alternatives into a portfolio can enhance clients’ outcomes and the benefits of private market investing. 

For more resources on the Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Navigating shifts in global trade

Watch the video version on YouTube.

As rising geopolitical tensions and the pandemic fallout have uncovered weaknesses in global supply chains, many nations have begun to rethink their trading relationships. U.S. policy, for example, has turned increasingly nationalistic, with recent administrations implementing tariffs and non-tariff barriers to trade, allocating funds toward domestic development of strategic industries and proposing other protectionist measures to support domestic activity. This election season, tariffs and trade have once again found themselves at the forefront of recent discourse, with both candidates proposing a stricter stance on trade policy, but to varying degrees and in different forms. Regardless of the outcome in November, these policies will have a profound impact on the global economy and have the potential to redefine the opportunity set across global financial markets.

Today’s episode discusses whether tariffs have been effective in the past and explore the investment implications of a more strict trade policy. For this conversation, Gabriela Santos, Chief Market Strategist for the Americas, joins Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management.

Resources:

For more resources on the U.S. elections visit our Election Insights hub

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Alternative Realities: Private equity challenges and opportunities

Watch the video version on YouTube. 

2020 and 2021 were banner years for the private equity market as fiscal and monetary stimulus boosted fundraising, deal and exit activity. More recently, however, macro uncertainty and higher interest rates have put a damper on the asset class, which is highly dependent on leverage. Still, better-than-expected economic growth has supported recent performance. As companies, particularly in the Technology sector, wait longer to IPO, private equity has become an increasingly important way to get exposure to the high growth potential of early-stage companies. For decades, investors have used private equity to supplement their public equity allocations, enhancing returns, reducing volatility and providing access to secular market trends.

Dr. David Kelly is joined by Ashmi Mehrotra, the Co-Head and Portfolio Manager within the Global Private Equity Group at J.P. Morgan Asset Management, to discuss the trends and investment opportunities she’s seeing in the asset class.

Time stamps: Introduction (00:00), Types of PE investments most focused on (1:00), Secondaries and Co-investments (1:32), Sectors and types of companies (6:59), Implications of slowing M&A and IPO activity (10:42), What dynamics are going to drive PE activity? (11:59)

Resources:

For more resources on Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify