Unlocking Wealth: Why Alternative Investments Are Your Best Bet!

Long-Term Capital Market Insights

In the intricate world of investing, where risk and reward dance a delicate tango, we urge our clients to harness the power of both intuition and data-driven strategies when making strategic allocation decisions. Remember, the insights shared here are crafted from qualitative assessments. Relying solely on this information is not recommended. We’re not suggesting specific asset classes or strategies, nor are we guaranteeing future performance. Keep in mind, these assumptions focus on passive strategies and do not factor in the nuances of active management. Predictions about future returns are not guarantees but rather illustrative estimates. They should never be taken as directives to buy or sell securities. Our forecasts reflect our views based on the current market landscape and are always subject to change.

“Expected” returns or “alpha” projections come with their own uncertainties. For instance, any shifts in historical data could yield wildly different outcomes for asset class returns. These anticipated returns hinge on specific economic conditions; hence, actual outcomes may vary, just as they have in the past. Investors should be cautious and not expect to see returns that mirror the projections shared here. The figures presented for various asset classes do not assure actual performance in a client’s portfolio. Due to the inherent limitations of all models, it’s crucial for potential investors not to depend entirely on these models when making investment decisions. Real-world investment management involves complexities that models simply can’t encapsulate, including trading realities, liquidity issues, fees, taxes, and market dynamics. Furthermore, these models are exclusively passive and do not account for the intricacies of active management, where success can be influenced by factors beyond a manager’s control.

The views expressed here should not be misconstrued as personalized investment advice. They do not represent a commitment from us or our affiliates to engage in any mentioned transactions. Projections, figures, opinions, or strategies presented here are purely for informational purposes, based on current assumptions and market conditions, and can shift without warning. We believe the information provided is accurate as of its release, but we cannot guarantee its completeness or reliability. This material is not sufficient for making an investment decision and should not be solely relied upon when assessing the merits of investing in any securities. We encourage you to conduct your own thorough evaluation of the legal, regulatory, tax, credit, and accounting implications and to consult your financial advisor to determine if any investments align with your personal financial goals. Be mindful that investment carries risks; the value of assets and income can fluctuate based on market conditions and tax regulations, and there’s a chance you may not recover the full amount invested. Remember, past performance is not necessarily indicative of future results.

General/Macro Considerations

Diving into alternative assets can be thrilling but comes with heightened risks compared to traditional investments, making them suitable only for seasoned investors. These alternative investments might not provide the tax efficiency you’d expect from traditional options, so it’s wise to consult with a tax advisor before you proceed. Additionally, they often come with higher fees and may utilize leverage and speculative techniques that can amplify your chances of both gains and losses. Be prepared for the possibility that the value of your investment may decrease, leading to returns lower than what you initially invested.

Real Estate, Hedge Funds, and Private Investments

Investments in real estate, hedge funds, and other private offerings may not be fitting for every investor. They often carry significant risks and can be sold or redeemed at prices that differ from your original investment. Private investments require detailed offering memorandums that outline potential risks more thoroughly. There are no guarantees that any investment product will achieve its stated goals. Hedge funds, in particular, may engage in leveraging and other high-risk strategies, increasing the risk of loss. They can be illiquid and aren’t required to provide regular pricing or valuation updates, which can add to the complexity of managing such investments.

Key Risks

Investing in alternative assets carries risks that exceed those associated with traditional investments and is generally recommended only for experienced investors. They often lack tax efficiency and should be approached with caution. These investments can involve higher fees and may utilize leverage and speculative strategies that enhance potential losses or gains. As with any investment, the value can fluctuate, and you might get back less than your initial investment. Diversification and asset allocation cannot guarantee profits or shield against losses.

Private investments come with unique risks and suitability standards that individuals must meet before getting involved. This information is not an offer or solicitation to buy or sell any security. Hedge funds and similar investment vehicles often engage in high-risk practices that may lead to significant losses. They can lack liquidity, and investors may not receive regular valuation updates, adding layers of complexity and potential tax implications that may not be immediately apparent. They also operate under different regulatory frameworks than mutual funds and frequently involve higher fees. There may be conflicts of interest regarding the management of these funds, so it’s crucial to review the relevant offering documents for complete information.

Real Estate Investment Trusts (REITs) might also expose investors to considerable market risks due to their concentration in specific sectors or geographic areas. Factors like economic downturns, property value fluctuations, and borrower defaults can significantly affect the performance of these investments.

This material serves informational purposes only, shedding light on products and services offered through private banking sectors. Please note that products and services, along with associated fees and interest rates, may change based on applicable agreements and can vary by location. Not every product is available in every area. If you need assistance or have a disability that affects your access to this material, please reach out to your team for support or contact us via email for help. Please review all important information carefully.

General Risks & Considerations

The strategies, products, and views discussed in this material may not suit everyone and come with inherent risks. Investors should be prepared for the possibility of losing some or all of their investment, as historical performance is not a reliable predictor of future outcomes. Proper asset allocation and diversification do not guarantee profits or protect against losses. Evaluate the products, strategies, and asset classes discussed to ensure their suitability for your investment objectives. It’s crucial to consider the risks, fees, and expenses associated with any investment service, product, or strategy before making decisions. For more information customized to your goals, please contact your financial team.

Non-Reliance Disclaimer

While we strive for accuracy, certain information in this material is believed to be reliable. However, we do not guarantee its completeness or accept liability for any loss arising from its use. Any projections, charts, or figures provided are for illustrative purposes only and reflect our judgment based on existing market conditions, which are fluid and can change without notice. We assume no obligation to update any information should conditions shift. The opinions and strategies expressed may diverge from those of other teams within our organization and should not be viewed as comprehensive research reports. Projections are based on hypothetical examples and actual results may differ significantly. Forward-looking statements should not be interpreted as assurances of future events.

This document does not create any advisory relationship or duty of care to you or any third party. It should not be interpreted as an offer or recommendation of any financial services, legal, tax or accounting advice from us. Always consult with your own advisors before engaging in financial transactions.

IMPORTANT: Your Investments and Potential Conflicts of Interest

Conflicts of interest may arise when we, or our affiliates, have a financial incentive in how we manage your portfolios. This could occur, for example, if we invest in products managed by our own firm or obtain services from affiliates. Such conflicts may also arise due to our relationships with other clients or our own financial interests.

Our investment strategies are sourced from both in-house and third-party managers, reviewed thoroughly by our research teams. From this vetted pool, we select strategies that align with our asset allocation goals and market outlook to meet your investment objectives.

Generally, we prefer our managed strategies, and there may be a high (or even full) representation of these in strategies such as cash and high-quality fixed income, depending on applicable laws and client-specific considerations.

While our internally managed strategies often align with our forward-thinking views and our understanding of our investment processes, it’s critical to acknowledge that we do earn higher fees when these strategies are included. We do offer the option to exclude these strategies in certain portfolios, aside from cash and liquidity products.

Legal, Brand, and Regulatory Information

In the United States, services concerning bank deposit accounts—including checking and savings—are provided by JPMorgan Chase Bank, N.A., a member of the FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively referred to as “JPMCB”) offer a variety of investment products, including bank-managed accounts as part of trust and fiduciary services. Other products, like brokerage and advisory accounts, are available through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Chase Insurance Agency, Inc. (CIA) provides insurance products in certain locations, functioning as a licensed agency for those services. Not all products and services are available in every location.

This material has not been specifically prepared for Australian investors. It may reference dollar amounts not in Australian currency, financial data not compliant with Australian standards, and does not address risks tied to foreign currency investments or Australian tax issues.

References to “J.P. Morgan” encompass JPM and its global subsidiaries and affiliates. “J.P. Morgan Private Bank” represents the private banking entity within JPM. This material is intended solely for your personal use—please avoid sharing or duplicating it without permission. If you have any questions or wish to stop receiving communications, please reach out to your financial team.