In the latest in our regular series, Track to the Future, fund group distribution bosses share their thinking on asset classes, strategies and working with clients over the next 12 months.
Here, Christoph Bergweiler, head of continental Europe funds at JP Morgan Asset Management, discusses the trend towards greater diversification, the challenges of private assets and fiduciary obligation.
Which particular asset classes and strategies do you anticipate your intermediary clients focusing on this year and into next?
We are seeing a clear trend among our clients toward greater diversification and a more nuanced approach to portfolio construction. There is strong appetite for strategies that can deliver resilient returns in a changing macro environment. This includes European fixed income, flexible multi-asset solutions, and, increasingly, active ETFs. The search for yield and risk-adjusted returns is leading many clients to consider alternative income sources, such as real assets and private markets. We also observe strong interest in strategies that can navigate volatility and inflation, for example, liquid hedge funds.
Should end investors – and, by association, asset managers – be thinking beyond equity and bond investments? Towards what?
Absolutely. The investment landscape is expanding, and so must our approach. While equities and bonds will always play a central role, the next decade will be defined by the ability to access a broader opportunity set. This means looking at alternative asset classes, which are now available to wider client groups through frameworks like ELTIFs and LTAFs. These alternatives can enhance the risk-return profile and resiliency of portfolios, and allow investors to participate in the profound transformation of our economies.
To what extent do private assets and markets fit into your thinking? What are the current pros and cons for investors?
Private assets are an increasingly important part of strategic asset allocation. They offer the potential for lower correlation to public markets and access to unique growth opportunities. Our Long Term Capital Market Assumptions, show that adding alternatives to a portfolio can significantly improve the risk-return profile.
However, private assets also come with challenges: they require a longer investment horizon, careful manager selection, and a clear understanding of liquidity constraints. Education and transparency are crucial, especially as more private market solutions become accessible to a broader range of investors. We see our role as not only providing access, but also supporting intermediaries and end clients with the right tools and information to make informed decisions.
Given client and regulatory pressure on charges, how is your business delivering value for money to intermediaries and end clients?
Delivering added active value is our core focus, building on our fiduciary responsibility. We invest heavily in research, technology, and risk management to ensure our clients benefit from genuine active management and robust investment processes.
Our scale allows us to offer competitive pricing, and we are transparent about costs and performance. For example, 85% of our fixed income strategies and 92% of our equity assets have outperformed their benchmarks over 10 years, and a significant number of our funds hold top Morningstar ratings.
We also continue to innovate with products like active ETFs, which combine the benefits of liquidity and transparency with active management expertise. Ultimately, our goal is to deliver consistent, risk-adjusted returns and steady alpha that help build long-term wealth and make a real difference compared with passive investments.
How much of your distribution is currently oriented towards climate change, net zero, biodiversity and other segments of sustainable investing? How do you see this approach evolving?
It’s fair to say enthusiasm for sustainable investing has softened compared with the 2021–2022 peak. However, we continue to see demand where solutions are credible, clearly defined, and aligned with client objectives.
Sustainable investing is embedded in how we invest as an active asset manager. In terms of our distribution focus, we offer a dedicated sustainable range across Positive Tilt, Best-in-Class, and Thematic strategies. We’ve seen growth in sustainable and climate-related AUM over recent years, and client conversations remain centred on climate and net zero implementation through dedicated climate portfolios, including transition and Paris-aligned approaches, and bespoke decarbonisation targets for core portfolios.
Looking ahead, as the regulatory backdrop continues to evolve, with transparency and enhanced comparability in focus, we would expect this to support demand for sustainable solutions that reflect clients’ evolving interests and objectives in this space.
How are you balancing face-to-face and virtual distribution? And how are you balancing working from home and in the office?
It is part of our “sales alpha” to stay closely connected with our distribution partners and clients. Post-Covid, our approach is to combine the efficiency and reach of web conferences with the relationship-building power of in-person interactions. This year, we have seen new all-time highs in event participation, which has encouraged us to launch new formats like our European ETF Summit and local ETF Masterclasses.
Our teams are empowered to choose the format that best serves our clients’ needs, whether that’s a digital event for quick reactions to market disruptions, one-on-one meetings with market strategists or product experts, or larger conferences. The key is to remain agile and responsive as expectations and technologies evolve.
While it is important to spend time with clients, we also see it as crucial to spend time as a team, to benefit from each other’s experience and foster the right team spirit.
What do you do outside of work?
Outside of work, I am passionate about spending time with my family. I love being in the mountains and enjoying the outdoors.
What is the most extraordinary thing you have seen in your life?
Seeing my four kids growing up.
Looking further ahead, in what ways do you see the asset management sector evolving over the next few years?
The asset management industry is entering a period of profound transformation. We will see continued growth in alternatives, greater use of technology and data analytics, and a stronger focus on client outcomes. Regulation will remain a key driver, but so will the need for personalisation and transparency.
Asset managers who can combine scale with agility, innovation with discipline, and financial with non-financial value creation will be best positioned for the future. Our mission is to help clients navigate this complexity and achieve their long-term goals, whatever the market environment. Our North Star is our fiduciary obligation, which we always take very seriously.