As published on investmentweek.co.uk, Thursday November 14, 2019.
J.P. Morgan Asset Management (JPMAM) has launched JP Morgan Funds Genetic Therapies, an actively managed fund, in partnership with UBS Global Wealth Management.
The fund will combine "machine learning and active equity insights" and leverages UBS research from its longer term investments framework.
Genetic therapies are at an "inflection point", currently moving from "clinic to commercial reality", JPMAM said.
The Genetic Therapies fund aims to provide investors with the chance to "gain diversified exposure" to this "new and exciting" theme, while helping to hedge the risk of "disruption" to healthcare portfolios.
The fund will be co-managed by Yazann Romahi, Berkan Sesen and Ajiaz Hussein, who sit within the JPMAM's Quantitative Beta Strategies (QBS) team.
It has been designed to utilise ThemeBot, JPMAM's proprietary thematic engine, along with its global equity platform.
ThemeBot uses natural language processions and will screen "more than 10,000" stocks globally to identify those with the highest exposure to genetic therapies and "generate a high relevance portfolio, accounting for liquidity, market capitalisation and profitability".
Following this, the QBS team will work with five dedicated healthcare analysts to "vet and validate" ThemeBot's output.
The portfolio will invest across the market capitalisation spectrum and will initially be distributed by UBS.
Yazann Romahi, chief investment officer of QBS at JPMAM, said: "In seeking to create data driven portfolios that bring together human and artificial intelligence, we are able to offer investors thematic solutions that enable them to tap into some of the central investment themes shaping our world today."
Mark Haefele, chief investment officer at UBS Global Wealth Management, added: "Genetic therapies could develop into a profoundly disruptive technology for the pharmaceutical and biotechnology industry.
"Positioning portfolios to capture the economic benefits of disruption, while hedging or mitigating its effects on other assets, supports our goal to help our clients protect and grow their wealth over generations."
George Gatch, CEO at JPMAM, said: "We are delighted to partner with UBS in developing this new fund. We are deploying our best artificial intelligence (AI) and big data capabilities combined with our global research expertise for this investment theme. Innovating jointly with our clients is an important priority for us."
Christian Wiesendanger, head of investment platforms and solutions at UBS Global Wealth Management, added: "Developing new solutions with our partners is critical to implementing innovative ideas in clients' portfolios.
"Machine learning is an exciting new tool for those looking to be at the cutting edge of investment management and will likely play a greater role in the years ahead."