Family Office
Wachovia adds JPMorgan behavorial value strategy
Bank brokerage puts psychological twist on unified managed
account program. Wachovia Securities has selected JPMorgan Asset
Management's behaviorally driven JPMorgan Intrepid Value strategy
for its Diversified Managed Allocations account (DMA)
platform.
Behavioral finance strategies combine psychology with disciplined
investment processes as they attempt to capitalize on market
anomalies that occur as a result of irrational though predictable
investor behavior.
Increased interest
"JPMorgan launched a series of behavioral strategies in the U.S.
after successfully launching our investment process in the U.K.
and Europe over a decade ago," says JPMorgan Funds CEO George
Gatch. "With a four-year track record and strong performance in
the Intrepid portfolios, we are experiencing increased interest
in our behavioral strategies and managed accounts, and are proud
to be a leader in making these strategies available to investors
through Wachovia Securities."
Silvio Tarca, Robert Weller and Jason Alonzo manage the Intrepid
Value strategy.
Wachovia's DMA -- a unified managed account program that blends
separately managed accounts and mutual funds -- has an investment
minimum of $150,000, though the average account has $700,000. The
program had $12.5 billion in assets at the end of 2006, up from
$8.8 billion at the end of 2005.
The Intrepid Value fund will also be available on Wachovia's
FundSource, CustomChoice, Asset Advisor, Pilot Plus and PIM
programs.
Behavioral-finance strategies accounted for $96 billion of
JPMorgan Asset Management's $1.1 trillion in assets under
management on 31 March 2007. -FWR
.
