JPMorgan to prefer equities less.
Global Banking News - 06 October 2009(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
JPMorgan (NYSE: JPM) has said that it is planning to stay underweight on equities.
The bank said that it would prefer equities less because of a possible deceleration in the global economy in the second half of 2010. The bank is favouring alternative return drivers that are less dependent on growth such as hedge funds, commodities, currencies and credit. It would also enhance its cash holdings.
Ivan Leung, chief investment strategist with JPMorgan Private Bank in Asia, said that the bank was four per cent underweight on equities, eight per cent overweight on hedge fund strategies and five per cent overweight on cash compared to a balanced portfolio that has a 40 per cent allocation to equities, 40 per cent to fixed income and 20 per cent to alternative assets.
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