JPMORGAN FLEMING ASSET MANAGEMENT
£3.78bn in Asia (ex-Japan) equities
Flagship product:
JPMF Institutional Asia Equity Fund.
Investment and risk management process:
Three-stage process based on fundamental bottom-up research, consisting of: stock selection and asset allocation; portfolio construction; and execution. The risk department works provides oversight, co-ordination and a consolidated view of risks to senior management.
The department also maintains the front and back office risk management system to prevent investment restrictions and guidelines breaches, logs all breaches and completes control gap analysis to eliminate potential areas of weaknesses.
Management style
JPMorgan claims greater use of internal database tools to increase the transparency of the investment process.
The firm says stock selection process has been enhanced through improving valuation skills, and introducing the concept of strategic classifications to more clearly articulate JPMorgan Fleming’s longer-term view of companies.
Future trends
JPMorgan Fleming expects Asian earnings forecasts to be revised up as the year unfolds, creating considerable scope for positive surprises. Market valuations also suggest there may be some potential scope for multiple expansion in 2005.
Combining the two, another year of positive returns for Asian equities is forecast. The firm says it is unrealistic to expect Asia to de-couple immediately from the US, however, so there may be hiccups en route and investors should be prepared to ride through the short-term volatility.
Team composition
- Piers Litherland is chief investment officer of JF Asset Management and head of Pacific Regional Group in Hong Kong.
- Charlotte Yew is deputy chief investment officer of JF Asset Management and based in Singapore.
- Jeffrey Roskell is a regional investment manager with the Pacific Regional Group in Hong Kong and the portfolio manager for the the Institutional Asia Equity Fund.
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