1^st competitive factor: easing policies³

The public health crisis has disrupted economic activities globally, and governments and central banks have continued to respond with massive monetary and fiscal stimulus to support businesses and labour markets. As easing polices are here to stay, policy rates will be lower for longer, bolstering Asia’s bond markets. 

 2^nd competitive factor: compelling income potential

• Government bond yields are trending lower as global central banks have cut interest rates to zero or negative levels.
• Asia’s bond markets, when compared with other global bonds, could generally offer attractive potential for yield, especially the higher-yielding local currency debt.
   

Government bond yields across Asia and major developed markets⁴

 3^rd competitive factor: relatively mild inflation supports further easing

• Inflation has generally been moderate in Asia, giving the region’s central banks and governments more room for easing policies.
• Economic activities have gradually resumed in Asia. Fiscal stimulus could also help maintain supply and keep prices relatively stable.
   

Consumer Price Index and Producer Price Index inflation⁵

1. Yield is not guaranteed. Positive yield does not imply positive return.
2. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions. Yield is not guaranteed. Positive yield does not imply positive return.
3. Source: J.P. Morgan Asset Management and Central Banks (China, South Korea, Indonesia and India). Data as of 29.06.2020. China’s policy rate refers to Medium-Term Loan Facility Rate.
4. Source: Bloomberg, as of end-June 2020. Yield is not guaranteed. Positive yield does not imply positive return. Past performance is not a reliable indicator of current and future results.
5. Source: CEIC, National Bureau of Statistics of China, J.P. Morgan Asset Management. Data reflect most recently available as of 30.06.2020.
6. Source: J.P. Morgan Asset Management. Ex-dividend date is 30.06.2020. The (mth) Class aims at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital^{Refer to important information 3}. 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.

Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice. Forecasts/ estimates may or may not come to pass.

Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current and future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.