12-month forward returns of JPMorgan Global Bond Fund – Class A Units’ benchmark index in the past 20 years
- Bloomberg Global Aggregate ex-Securitized, USD hedged Index (benchmark index of JPMorgan Global Bond Fund – Class A Units) is a global investment grade bond index with around 70% government bonds and 30% corporate debt securities.
- As illustrated in the chart above, higher Treasury yields are generally associated with a relatively more attractive return profile.
- We see opportunities in investment grade bonds, especially government bonds. As the end of the hiking cycle looms, investors looking to lock-in relatively high risk-free rates could bolster market demand for government bonds. In addition, we believe government bonds could serve as an anchor in bond portfolios as the credit spreads of corporate bonds generally would widen with further signs of an economic downturn.
- The JPMorgan Global Bond Fund – Class A Units invest at least 80% in investment grade bonds. As of end-April 2023, the portfolio invested over 60% in government-related debt securities. We prefer government bonds at the moment, compared with investment grade corporate credit, as a buffer against risk-off moves and the possibility of credit spreads widening2. The Fund stays focused on quality bonds for better risk-adjusted return opportunities, alongside dynamic duration and disciplined risk management3.