3, 2, 1 – getting ready to invest in Chinese bonds
Expand your sources of income by considering the potential opportunities in Chinese bonds.
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Which is why the JPMorgan Funds – Income Fund invests opportunistically across multiple debt markets and sectors with a view to making portfolio income a viable outcome.
Video on income strategy
Securitisation
MBS
ABS
Video on income strategy
Understand how our award-winning flagship Fund seeks to deliver attractive income for a given level of risk
What is securitisation?
What is securitisation? Let’s explore the potential benefits it can bring to your investment portfolio.
What are mortgage-backed securities?
What are mortgage-backed securities? Let’s explore the potential benefits it can bring to your investment portfolio.
What are asset-backed securities?
What are asset-backed securities? Let’s explore the potential benefits it can bring to your investment portfolio.
WHY GLOBAL FIXED INCOME WITH A FLEXIBLE APPROACH?
A WORLD OF LOWER YIELDSA world of lower yields
2019 saw the US Federal Reserve and around 40 central banks globally cutting rates at a combined total of 60-plus times in response to escalating trade tensions and other recession risks. With lower yields likely to persist, investors may need to explore the full spectrum of the fixed income space for better income opportunities.
Source: J.P. Morgan Asset Management; BIS. Count covers the 38 central banks included in the Bank for International Settlements’ central bank policy monitor. Year-to-date data reflect most recently available as of 30.11.2019. Guide to the Markets –Asia 1Q 2020, page 22.
Non-traditional fixed income may offer attractive potential and cushion volatility
Non-traditional fixed income sectors such as asset-backed securities (ABS) and mortgage-backed securities (MBS) provide additional sources of income. From auto loans to residential mortgages, different securitised assets are expected to continue benefitting from robust US consumer confidence.
In addition, securitised assets historically had low or even negative correlation to equities, delivering relatively better performance during significant equity downturns.
Source: Bloomberg, J.P. Morgan Asset Management, as of 31.12.2019. Calculated using monthly total returns in USD. ABS: asset-backed securities. MBS: mortgage-backed securities. CMBS: commercial MBS. Indices used: S&P 500 Index (US equities), Bloomberg Barclays US MBS Index (Agency MBS), Bloomberg Barclays US Securitised: ABS Index (ABS), Bloomberg Barclays US CMBS ERISA-Eligible Index (CMBS), Markit iBoxx Broad US Non-Agency RMBS Index (Non-agency MBS). Past performance is not indicative of future performance.
FIXED INCOME CAPABILITIES
TEAM APPROACHACCESS TO THE POWER OF A GLOBALLY INTEGRATED TEAM OF INVESTMENT PROFESSIONALS
■ Includes portfolio managers, research analysts, traders and investment specialists with VP title and above.
^ Includes assets managed on behalf of other J.P. Morgan Asset Management investment teams.
Source: J.P. Morgan Asset Management, as of end-March 2020.
Our research encompasses fundamental, quantitative and technical analysis
FUNDAMENTAL
- Macroeconomic data
- Corporate health figures
QUANTITATIVE (valuations)
Rich or cheap valuation on:
- Absolute basis
- Relative basis (historical and cross-sector)
TECHNICALS
- Supply and demand dynamics
- Investor positioning and momentum
OUR RISK MANAGEMENT DISCIPLINE IS ESSENTIAL TO OUR INVESTMENT PROCESS
WHY INVEST IN THE JPMORGAN FUNDS – INCOME FUND?
Flexible approach
Investing opportunistically across the bond universe without benchmark constraints, the fund managers can take advantage of the flexibility in managing the portfolio.
Focusing on income
The fund managers manage the income of the Fund to help minimise fluctuations in dividend payments of its monthly distribution share classes*. Its USD (mth) class has maintained a distribution yield^ of 5% or above over the past two years. (*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to important information 3)
Source: J.P. Morgan Asset Management, as of end-March 2020.
^Positive distribution yield does not imply positive return. Annualised yield = [(1+distribution per unit/ex-dividend NAV)^12]-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 annual dividend yield.
More currency choices now available
In addition to USD and HKD, the Fund offers investors with multiple currency choices, including the AUD Hedged, RMB Hedged†, GBP Hedged, EUR Hedged, and SGD Hedged Classes.
| Available classes | Launch date |
| USD (acc) Class | 02.06.2014 |
| USD (mth) Class | 19.12.2014 |
| HKD (mth) Class | 19.12.2014 |
| AUD Hedged (mth) Class | 05.09.2019 |
| RMB Hedged (mth) Class† | 05.09.2019 |
| GBP Hedged (mth) Class | 05.09.2019 |
| EUR Hedged (mth) Class | 05.09.2019 |
| SGD Hedged (mth) Class | 05.09.2019 |
† The RMB Hedged (mth) Class is not available on the J.P. Morgan eTrading platform.
Source: J.P. Morgan Asset Management, as of end-March 2020. The AUD/RMB/GBP/EUR/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies.
Multiple debt markets and sectors
The Fund invests in a wide range of fixed income securities, covering not only traditional but also non-traditional fixed income, allowing for a wider source of income.
Compelling risk and return profile
The Fund has delivered stronger returns relative to the peer average, while exhibiting lower volatility compared with its peer group over 1-year, 2-year, 3-year and 5-year horizons.
Source: J.P. Morgan Asset Management, Morningstar, Inc, USD Flexible Bond Category of HK SFC authorised funds (as of end-March 2020, NAV to NAV in USD with income reinvested). The authorisation from SFC does not imply official recommendation. Fund refers to the USD (acc) Class. Volatility based on monthly data. Calendar year return: 2015 -1.4%; 2016 +7.9%; 2017 +6.1%; 2018 +0.4%; 2019 +11.4%; 2020 YTD -9.2%. Past performance is not indicative of future performance.
Industry recognition
The JPMorgan Funds – Income Fund is an award-winning offering with a strong track record. Andrew Norelli, who co-manages the Fund, was also named Best Hong Kong Manager – Global Bonds+ in the Citywire Asia Awards 2020 for his outstanding fund management.
| Fund Selector Asia Awards Hong Kong 2020 Global Bond – Platinum* | Lipper Fund Awards Hong Kong 2019 Best Fund over 3 Years – Bond Global ^ |
Citywire Asia Fund Manager Award 2020 Best Fund Manager, Hong Kong: Global Bonds+ |
* Issued by Fund Selector Asia, based on volatility and consistency of performance as well as fund selector choices for the three-year period from 30.06.2016 to 30.06.2019.
^ Issued by Lipper of Refinitiv, 2019 award for the A (acc) - USD Class, reflecting performance as of 31.12.2018. Lipper Fund Awards from Refinitiv, © 2019 Refinitiv. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.
+ Issued by Citywire Asia, 2020 award, reflecting performance of the past three years to 31.12.2019. There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management (JPMAM) will continue to be employed by JPMAM or that the past performance or success of any such professional serves as an indicator of such professional's future performance or success.
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For more information, please call or email us. You can also contact your J.P. Morgan representative.