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Important Information

JPMorgan Asian Total Return Bond Fund

 

  1. The Fund invests primarily (at least 70%) in Asian bonds and other debt securities. The Fund will have limited RMB denominated underlying investments.
  2. The Fund is exposed to risks related to debt securities (including interest rate risk, below investment grade/ unrated investment risk, investment grade bond risk, sovereign debt risk, valuation risk, credit risk and credit rating agency risk), emerging markets, concentration, currency, derivatives, liquidity, hedging, class currency and currency hedged classes. Pertaining to investments in below investment grade or unrated debt securities, these securities may be subject to higher liquidity risks and credit risks comparing with investment grade bonds, with an increased risk of loss of investment. For RMB hedged class, risks associated with the RMB currency and currency hedged classes risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point. The Manager may, under extreme market conditions when there is not sufficient RMB for currency conversion and with the approval of the Trustee, pay redemption monies and/or distributions in USD.
  3. Where the income generated by the Fund is insufficient to pay a distribution as the Fund declares, the Manager may at its discretion determine such distributions may be paid from capital including realised and unrealised capital gains. Investors should note that the payment of distributions out of capital represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to that original investment. Any payments of distributions by the Fund may result in an immediate decrease in the net asset value per unit.
     

JPMorgan Global Bond Fund

 

  1. The Fund invests primarily (at least 90%) in global investment grade debt securities. The Fund will have limited RMB denominated underlying investments.
  2. The Fund is exposed to risks related to debt securities (including credit risk, interest rate risk, below investment grade/ unrated investment risk, investment grade bond risk, sovereign debt risk and valuation risk), emerging markets, currency, derivatives, liquidity, hedging, class currency, currency hedged classes and Eurozone sovereign debt crisis. For RMB hedged class, risks associated with the RMB currency and currency hedged classes risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point. The Manager may, under extreme market conditions when there is not sufficient RMB for currency conversion and with the approval of the Trustee, pay redemption monies and/or distributions in USD.
  3. Where the income generated by the Fund is insufficient to pay a distribution as the Fund declares, the Manager may at its discretion determine such distributions may be paid from capital including realised and unrealised capital gains. Investors should note that the payment of distributions out of capital represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to that original investment. Any payments of distributions by the Fund may result in an immediate decrease in the net asset value per unit.

 

JPMorgan Funds – Income Fund

 

  1. The Fund invests primarily in a portfolio of debt securities.
  2. The Fund is therefore exposed to emerging markets, investment grade bonds, credit, sovereign, interest rate risks which may affect the price of bonds, concentration, convertibles, equity, currency, liquidity, derivative and distribution (no assurance on distribution or the frequency of distribution or distribution rate or dividend yield) risks. Pertaining to investments in below investment grade or unrated debt securities, these securities may be subject to higher liquidity risks and credit risks comparing with investment grade bonds, with an increased risk of loss of investment. Investments in asset backed securities and mortgage backed securities may be subject to greater credit, liquidity and interest rate risks compared to other debt securities such as government issued bonds and are often exposed to extension and prepayment risks.
  3. The Fund may at its discretion pay dividends out of capital. The Fund may also at its discretion pay dividends out of gross income while charging all or part of the Fund’s fees and expenses to the capital of the Fund, resulting in an increase in distributable amount for the payment of dividends and therefore, effectively paying dividends out of realised, unrealised capital gains or capital. Investors should note that, share classes of the Fund which pay dividends may distribute not only investment income, but also realised and unrealised capital gains or capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any dividend payments, irrespective of whether such payment is made up or effectively made up out of income, realised and unrealised capital gains or capital, may result in an immediate reduction of the net asset value per share.

 

All The Above Funds

 

  1. Investors may be subject to substantial losses.
  2. Investors should not solely rely on this document to make any investment decision.
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IF INTEREST RATES AREN’T FIXED YOUR FIXED INCOME APPROACH SHOULDN’T BE EITHER

Which is why J.P. Morgan Asset Management invests dynamically across the full spectrum of fixed income, in traditional and extended sectors, to manage risk and harvest yield in a changing world.

JPMorgan Asian Total Return Bond Fund
JPMorgan Global Bond Fund
JPMorgan Funds – Income Fund

fixed-income-fund

THE ROLE OF FIXED INCOME

Government bonds and other fixed income sectors have traditionally played an important role in portfolios for their ability to:

  • generate income
  • preserve capital
  • diversify1 equity risk

However, it has become increasingly challenging for investors to find income as interest rates have reached historical lows in some countries, and even fallen below zero in others.

TWO MAJOR CHALLENGES INVESTORS FACE TODAY

1. A world of falling or even negative yields 


In 2019, the US Federal Reserve cut rates three times for a combined 75 basis points. Other major central banks have stayed accommodative, with some making deeper cuts into negative territory and restarting bond purchase programmes. Today, over a quarter of the global aggregate bond market, in local currency terms, are negatively yielding.

Size of negative yielding debt market2

Solution: Benefit from multiple income sources  


Yield can still be found, but may require an active approach to identify the best investing ideas. There are various types of bonds globally and they react differently to market changes such as interest rate movement and economic cycle. When managed properly, this could also mean added diversification1 in portfolios if alternative asset classes are included.

Market volatility and lower yields are expected to stay. It’s time to embrace the challenges, differentiate and invest where opportunities can be found via a diversified1 and flexible approach.

Impact of a 1% fall in interest rates3

2. Equity volatility 


Market volatility and price fluctuations persist amid heightened geopolitical risks, a slowing global economy and ongoing trade tensions. The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX or the “fear index”, measures market expectations of near-term volatility conveyed by S&P 500 Index (SPX) option prices.

The “fear index” has gone through a bumpy ride in the past two years, reaching two peaks in early 2018 and early 2019 before easing to about 13 as of end-October 2019. Yet, that was still about 20% higher than the level it began in 2018.

Changes in the VIX since 20184

Solution: Diversified1 portfolio


US Treasuries, securitised debts and investment grade (IG) bonds generally have lower volatility and – more importantly – lower or even negative correlation to stocks. Allocating to fixed income can help build a resilient and diversified1 portfolio.

Yields and correlations of different fixed income sectors to equities5

 

1. Diversification does not guarantee investment return and does not eliminate the risk of loss.
2. Source: Bloomberg, ICE BofA Merrill Lynch, J.P. Morgan Asset Management. Data reflect most recently available as of 30.09.2019.
3. Source: Barclays, Bloomberg, FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg Barclays US Treasury Bellwethers Index (2, 5, 10, 30y U.S. Treasuries), Bloomberg Barclays US Treasury Inflation-Protected Notes Index (TIPS), Bloomberg Barclays US Floating Rate Notes Index (US Floating Rate), Bloomberg Barclays US Aggregate Securitized – MBS Index (US MBS), Bloomberg Barclays US Aggregate Credit – Corporate – Investment Grade Index (US IG), Bloomberg Barclays US Aggregate Credit – Corporate – High Yield Index (US High Yield), J.P. Morgan Emerging Market Bond Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index (USD Asia Credit), J.P. Morgan Government Bond Index – EM Global (GBI-EM) (Local EMD). Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. Change in bond price is calculated using both duration and convexity, assuming a 1% fall in relevant local interest rate. Past performance is not a reliable indicator of current and future results. Data reflect most recently available as of 30.09.2019.
4. Source: FactSet, J.P. Morgan Asset Management. Past performance is not a reliable indicator of current and future results. Data reflect most recently available as of 31.10.2019.
5. Source: Barclays, Bloomberg, FactSet, ICE BofAMerrill Lynch, J.P. Morgan Economics Research, MSCI, J.P. Morgan Asset Management. Based on Bloomberg Barclays US Treasury (UST) Bellwether 2y & 10y (2y & 10y UST), Bloomberg Barclays US Aggregate, Credit – Investment Grade & High Yield (US Aggregate, IG & HY), Bloomberg Barclays US Securitised – Asset-Backed Securities (US ABS), Bloomberg Barclays US Securitised – Mortgage-Backed Securities (US MBS), Bloomberg Barclays US Securitised – CMBS – ERISA-Eligible Index (US CMBS), J.P. Morgan GBI-EM Global (Local EMD), J.P. Morgan EMBI Global (USD EMD), J.P. Morgan Asia Credit (JACI) (USD Asia Credit), J.P. Morgan Asia Credit (JACI) – High Yield (USD Asia HY), J.P. Morgan CEMBI (USD EM Corporates). *Correlations are based on 10-years of monthly returns. Data reflect most recently available as of 31.10.2019. Positive distribution yield does not imply positive return.

J.P. Morgan Asset Management's Fixed Income Funds

JPMorgan Asian Total Return Bond Fund

Capture the vast potential across Asian bonds

  • "Best ideas approach" to help achieve competitive total returns in Asia
  • Dynamic approach across Asian credit, local currency bonds and convertibles
  • 5.32% annualised yield*# (*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to Important Information 3)
  • 5.36% annualised volatility (3-year)^

JPMorgan Global Bond Fund

Invest in a global portfolio via high-rating bonds

  • A globally diversified1 bond solution
  • High-rating bond investing, with at least 90% of investment grade bonds
  • 3.75% annualised yield*# (*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to Important Information 3)
  • 2.93% annualised volatility (3-year)^^

JPMorgan Funds – Income Fund

Invest in our highest-conviction, income-generating ideas globally

  • Investing opportunistically across the bond universe without benchmark constraints
  • Tapping into multiple debt markets and sectors with a focus on income
  • 5.97% annualised yield*# (*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to Important Information 3)
  • 6.43% annualised volatility (3-year)^^^
Read more fixed income insights

# Source: J.P. Morgan Asset Management, USD (mth) class annualised yield as of end-April 2020. Positive distribution yield does not imply positive return. Dividend rate is not guaranteed. Annualised yield= [(1+distribution per unit/ex-dividend NAV)^distribution frequency]-1. The annualised dividend yield is calculated based on the monthly dividend distribution with dividend reinvested, and may be higher or lower than the actual dividend yield. Distributions may be paid out of capital which represents a return or withdrawal of part of the amount an investor originally invested or from any capital gains attributable to that original investment. Any payments of distributions by the Fund may result in an immediate decrease in the net asset value per share.

^ Source: J.P. Morgan Asset Management (USD (mth) class return as of end-April 2020, NAV to NAV in USD with income reinvested). Volatility based on monthly data. Past performance is not a reliable indicator of current and future results.

^^ Source: J.P. Morgan Asset Management (USD (san) class return as of end-April 2020, NAV to NAV in USD with income reinvested). Volatility based on monthly data. Past performance is not a reliable indicator of current and future results.

^^^ Source: J.P. Morgan Asset Management (USD (acc) class return as of end-April 2020, NAV to NAV in USD with income reinvested). Volatility based on monthly data. Past performance is not a reliable indicator of current and future results.

MORE FIXED INCOME FUNDS

Global

  • JPMorgan Investment Funds - Global High Yield Bond Fund

Emerging Markets

  • JPMorgan Funds – Emerging Markets Debt Fund
  • JPMorgan Funds – Emerging Markets Investment Grade Bond Fund

Europe

  • JPMorgan Europe High Yield Bond Fund

US

  • JPMorgan Funds – US Aggregate Bond Fund
  • JPMorgan Funds – US High Yield Plus Bond Fund
See all funds

FIXED INCOME CAPABILITIES

Team Approach Proprietary Research Risk Management
Team Approach

Access to the power of a globally integrated team of investment professionals

278

investment professionals6

9

investment locations

US$583 billion

assets under management (AUM)7

6. Includes portfolio managers, research analysts, traders and investment specialists with VP title and above.
7. Includes assets managed on behalf of other J.P. Morgan Asset Management investment teams.
Source: J.P. Morgan Asset Management, as of 31.03.2020.

Proprietary Research

Our research encompasses fundamental, quantitative and technical analysis

 

Fundamental

  • Macroeconomic data
  • Corporate health figure
  • Environmental, social and governance practices

Quantitative (valuations)

Rich or cheap valuation on:

  • Absolute basis
  • Relative basis (historical and cross-sector)

Technicals

  • Supply and demand dynamics
  • Investor positioning and momentum
Risk Management

INTEGRATED, MULTI-LAYERED RISK MANAGEMENT


Multi-dimensional risk management is embedded at every stage of our investment process. Portfolio managers have ultimate responsibility for investment risk, with an embedded risk management function and an independent risk team providing additional layers of oversight. 

 

Proprietary risk tools

Used to monitor volatility, correlation and duration

 

Scenario analysis

Allows us to test for “worst case” historical and customized scenarios

 

Independent risk oversight

Ensures regular review of portfolio risk exposures

The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

INVESTMENT IDEAS

Outlook 2021: portfolio positioning with ‘G.P.S.’

Uneven recoveries in 2021 would imply the need for more active management.

Read more

Year ahead 2021: seeking clarity amid macro uncertainty

As market volatility could persist in 2021, how can investors cut through the fog of uncertainty?

Read more

Outlook 2021: investment themes in a ‘new normal’

How a ‘new normal’ could shape investing in equities, fixed income and multi-asset solutions.

Read more

Keeping a longer investment horizon as events unfold in China and the US

What are the investment implications of China’s new economic blueprint and the US elections?

Read more

What’s ahead for investing as Election Day approaches

With less than a month to go before the US elections, we look at the investment implications for 5 major economic sectors.

Read more

Building a stronger income portfolio as rates stay low

A persistent and flexible strategy has become more important ever in seeking income.

Read more

Risks and potential opportunities for bonds in 4Q 2020

The potential opportunities and risks in bonds in the last stretch of 2020.

Read more

Recovering economy, recovering Chinese property bond demand

As China’s property market recovers, capture income potential of Chinese property bonds with a diversified Asian bond strategy.

Read more

What do the As and Bs in bond credit ratings mean for investors

Understand bond credit rating and broaden potential income opportunities.

Read more

Activating Asia’s bond potential with a dynamic approach

Actively manage local currency opportunities in an Asian bond portfolio.

Read more

Asia’s bond markets = one region + multiple income options

Asia’s bond markets have grown significantly over the past decade, spanning a diverse range that offers investors more fixed income options.

Read more

It’s three-in-a-row: Asian bonds in a portfolio

Income opportunties can still be found in Asia’s bond markets amid low rates as they are supported by these three factors.

Read more

Asian bonds: there’s still more to know

The Asian bond market has grown significantly in the past decade. Explore the abundant opportunities.

Read more

Chinese bonds: what, why and how

In the zero interest rate era, what are the income opportunities in Chinese bonds?

Read more

3, 2, 1 – getting ready to invest in Chinese bonds

Expand your sources of income by considering the potential opportunities in Chinese bonds.

Read more

Navigating Chinese bonds with versatility

As the search for income gets tougher, consider the world of Chinese bonds to diversify your income opportunity set.

Read more

Making the most of bond opportunities as the pandemic subsides

Positioning to tap bond market opportunities as economies reboot as the pandemic subsides.

Read more

Income Strategy Q&A: focusing on long-term value proposition

Our income strategy portfolio manager shares how he looks through the headlines and focuses on the long term.

Read more

2Q 2020 bonds: weathering a market storm

Diversifying across fixed income, with a quality tilt, could help build portfolio resilience.

Read more

Fixed income investing in uncertain times

Investing across multiple fixed income sectors could help navigate uncertain markets and seek yield in fixed income.

Read more

Aiming high when yield stays low

Yield can still be found in a low rate environment but requires moving along the risk spectrum.

Read more

1Q 2020 bonds: where we see opportunities

Time to reposition fixed income as the economy bottoms out and recession risk wanes.

Read more

Securitisation 101: What are ABS and MBS?

Fixed income isn’t just government or corporate bonds, it also includes non-traditional debt securities.

Read more

Securitisation: Then and now

The securitisation market has regained much ground in the past decade.

Read more
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Important: This area of the website is intended only for distributors of JPMorgan Funds (Asia) Limited. Information is not intended for retail or public distribution.

Investment involves risk. Past performance is not indicative of future performance. In particular, funds which are invested in emerging markets and smaller companies may involve a higher degree of risk and are usually more sensitive to price movements. Investors should carefully read and consider the fund offering document(s), which contain details on investment objectives, risk factors, charges and expenses of the fund, before making any investment decisions. Information in this website does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service, nor a distribution of information for any such purpose. Informational sources are considered reliable but you should conduct your own verification of information contained herein. The above information has not been reviewed by the SFC, issued by JPMorgan Funds (Asia) Limited.

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