Fixed Income Funds | J.P. Morgan Asset Management

Important Information

JPMorgan Asian Total Return Bond Fund

The Fund invests primarily in Asian bonds and other debt securities. The Fund will have limited RMB denominated underlying investments.
The Fund is exposed to interest rate risks which may affect the price of bonds, credit, emerging markets, currency, liquidity risks, and, for currency hedged classes, risks associated with the hedging and class currency. 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.
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

The Fund invests primarily in global investment grade debt securities. The Fund will have limited RMB denominated underlying investments.
The Fund is exposed to interest rate risks which may affect the price of bonds, credit, currency, investment grade bond, liquidity and Eurozone sovereign debt crisis risks, and, for currency hedged classes, risks associated with the currency hedged classes and class currency. 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.
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

The Fund invests primarily in a portfolio of debt securities.
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.
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

Investors may be subject to substantial losses.
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

Which is why we offer a range of fixed income solutions – JPMorgan Asian Total Return Bond Fund, JPMorgan Global Bond Fund and JPMorgan Funds – Income Fund – to help build stronger portfolios leveraging our 60 years of demonstrated results across market cycles.

JPMorgan Asian Total Return Bond Fund

JPMorgan Global Bond Fund

JPMorgan Funds – Income Fund

WHY FIXED INCOME NOW?

LOW INTEREST RATES DIVERSIFIED INVESTING SOUND FUNDAMENTALS

RELATIVELY LOW INTEREST RATES DESPITE ANTICIPATED RATE HIKES

While interest rates have begun to rise, they remain at relatively low levels in general. The US Federal Reserve is expected to continue with further rate hikes, on the back of signs of economic strength.

Source: Bloomberg Finance L.P., J.P. Morgan Asset Management.
G4 are the Bank of England, the Bank of Japan (BoJ), the European Central Bank and the US Federal Reserve.
*Key deposit rates that central banks charge commercial banks on their excess reserves.
**The BoJ is adopting a three-tier system in which a negative interest rate of -0.1% will be applied to the policy rate balance of the aggregate amount of all financial institutions that have current accounts at the BoJ. Past performance is not a reliable indicator of current and future results.
Guide to the Markets – Asia. Data reflect most recently available as of 31.03.2018.

DIVERSIFIED BOND INVESTING FOR A BALANCED APPROACH

To build a well balanced portfolio, fixed income can serve as a core asset class to diversify equity risk, providing at the same time a solid source of income. As the components in total return for global fixed income can vary significantly, the key is to diversify.

Source: J.P. Morgan Economic Research, J.P. Morgan Asset Management.
Based on J.P. Morgan Developed Market HY (DM USD high yield), J.P. Morgan Domestic High Yield (U.S. USD High Yield), J.P. Morgan EMBI+ (EM USD sovereigns), J.P. Morgan CEMBI (EM USD corporates), JACI Asia HY (Asian USD high yield), J.P. Morgan GBI-EM (EM local cur. sovereigns), JACI Asia Credit (Asian USD corporates), J.P. Morgan GBI-DM (DM local cur. sovereigns).
Past performance is not a reliable indicator of current and future results.
Guide to the Markets – Asia. Data reflect most recently available as of 31.03.2018.

SOUND FUNDAMENTALS FOR ASIAN BONDS

Asian bonds have recorded resilient performance among global peers since 2014. In terms of fundamentals, Asian investment grade bonds are expected to benefit from credit rating upgrades and economic conditions, while Asian high yield bonds are seeing lower default rates against emerging market peers.

Source: J.P. Morgan Asset Management, as of 31.03.2018.
Asia Blended: JP Morgan Asia Credit Index, EM Government (USD): JP Morgan Emerging Markets Bond Index-Global, EM Corp: JP Morgan Corporate Emerging Markets Bond Index – Broad, US IG: JP Morgan US Liquid Index;
US HY: J.P. Morgan Domestic High Yield Index, EM: Emerging Market.

PRODUCT OFFERINGS

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
Attractive income opportunities with monthly distribution share classes available (Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. ^{Refer to Important Information 3)}

JPMorgan Global Bond Fund

Invest in a global portfolio with a view to mitigating volatility

A globally diversified bond solution
High-rating bond investing, with at least 90% of investment grade bonds
Monthly distribution share classes available (Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. ^{Refer to Important Information 3})

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
Attractive income opportunities with monthly distribution share classes available (Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. ^{Refer to Important Information 3})