Turnkey asset management program AssetMark has picked JP Morgan Asset Management to run a new range of model portfolios on its platform.
The range of six risk-rated models, called JP Morgan Global Flexible, will be made up of a combination of JPM active mutual funds and smart beta ETFs.
The portfolios, which run from conservative to aggressive growth, will be built and managed by JP Morgan Asset Management’s multi-asset solutions team.
They will have expense ratios ranging from 0.45% to 0.51% and will invest in the institutional share class of any underlying mutual fund.
Zoe Brunson (pictured above), senior vice president of investment strategies at AssetMark, said it was the first time portfolios combining smart beta and active managers have been available on the AssetMark platform.
‘It’s a really nice blend of getting that broad market exposure with the strategic beta but allowing some level of extra alpha over traditional cap-weighted index, but also complementing it and partnering it with some higher alpha generation active managers, as a way to help manage risk,’ she said.
Brunson added that the firm had worked with JPM since 2008 and that the asset manager had proven it had added value through asset allocation in other model portfolios.
‘We’ve had three model portfolios we offered with JPM on the platform, they’ve been a great partner throughout the years, they’ve really proven how they add value through their asset allocation decisions,’ she said.
‘As we were looking at ways to bring together a lower-cost solution, which differentiated from anything else we had on the platform, we thought this is a great unique way to get JPMorgan’s best tactical thinking and best sources of alpha in asset management in a single solution,’ she added.
AssetMark has more than $42 billion in assets on its platform and more than 7,000 advisors across the country.