JPM Global Macro Opps team scraps 'low inflation' theme and warns of populism risks in Q1

Shrenick Shah, co-manager of the £873m JPM Global Macro Opportunities fund, has said the portfolio is currently running at the highest risk level since launch almost four years ago, following the removal of a 'low inflation' theme and a number of other changes.

The management team of Shah, James Elliot and Talib Sheikh decided to remove the multi-asset fund's long-term ‘low inflation' position in November, which previously represented 16% of the portfolio in terms of contribution to risk. Shah said: "The 'low inflation' theme was removed for a number of reasons. The rise in energy and commodity prices has seen an increase in global inflation, while the slack in some economies (the unemployment rate in the US for example) has been diminishing in recent years. "The theme has made good progress since the fund's launch in 2013 but now we feel lo...