Thrivent, Lombard Odier Trim Risky Assets as Brent Crude Nears $110, Pressuring JPMorgan Trading
Five weeks of conflict with Iran have wiped trillions off global equities and lifted Brent crude roughly 50% to near $110. Institutional investors such as Thrivent (US$212B AUM) and Lombard Odier are cutting growth-stock exposure and capping risky assets at 40%, moves that may pressure JPMorgan’s trading and asset-management divisions.
1. Market Volatility Driven by Iran Conflict
Five weeks of military escalation with Iran have erased trillions in global equity value and driven Brent crude up about 50% to near $110, producing 1.5% daily swings in the S&P 500 on single headlines.
2. Thrivent Reduces Growth-Stock Exposure
Thrivent, which manages US$212 billion in assets, has quietly shifted away from high-growth names in favor of value stocks and is eyeing beaten-down blue chips for potential entry when uncertainty peaks.
3. Lombard Odier Shifts to Cruise Mode
Lombard Odier Investment Managers has reset its portfolio to 40% risky assets, reallocating the remainder to bonds, commodities and volatility hedges, and is issuing daily market updates to meet heightened client demand.
4. Potential Impact on JPMorgan Divisions
The pullback from growth and rise in hedging strategies may reduce trading volumes and fee-generating asset-management flows, creating headwinds for JPMorgan’s sales and trading and wealth management segments.