Why we’ve introduced the fund
In recent times, stocks and bonds have been more highly correlated to each other than they have been historically. Also, bonds in their own right are exhibiting higher volatility than markets were accustomed to over the four-decade bond bull market that ran until 2022.
“Traditionally, investors have been able to use stocks and bonds to off-set one another,” explains Fahad. “Either markets are strong and stocks do well, or times are tougher, central banks cut interest rates, and bonds do well.
“But today we have challenges around high inflation as well as geopolitical issues – challenges that could potentially cause both bonds and stocks to fall at the same time.
“Although that’s not something we currently expect, we need to be prepared for the possibility. We need a new buffer, and that’s where this fund comes in – something that aims to operate outside the traditional tide of stocks and bonds.”
Claude Kurzo, UK Country Head at J.P. Morgan Asset Management, says: “We’re delighted to be launching a truly innovative liquid alternatives solution as part of our strategic relationship with Coutts – a solution which has been tailored to meet the specific needs of Coutts’ multi-asset portfolios and seeks to offer diversification and better client outcomes.”