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DRIVE INCOME WITH FLEXIBILITY

Which is why we invest opportunistically across multiple sources to help you light up the income potential in changing markets.

J.P. Morgan Asset Management

Curious about income investing? We share 4 FAQs

How much do you know about income investing amid an evolving market environment?

Read more

J.P. Morgan Asset Management

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

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

Read more

J.P. Morgan Asset Management

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

J.P. Morgan Asset Management

WHY INCOME INVESTING MATTERS?

A world of lower rates Market uncertainties persist
A world of lower rates

A world of lower rates
 

  • Market uncertainties have reinforced the dovish bias for central banks. In developed economies, central banks have elevated monetary stimulus to maintain market liquidity and keep rates low. 

  • With lower interest rates, traditional income sources such as cash savings and government bonds have come under pressure.
     

Unprecedented monetary stimulus1


1. Source: Bank of England, Bank of Japan, Bloomberg Finance L.P., European Central Bank, US Federal Reserve, J.P. Morgan Asset Management.
*New purchases of bonds are based on period to period changes in average holdings during the quarter across various asset purchase programs as reported by each respective G4 central bank (the Bank of England, the Bank of Japan, the European Central Bank and the US Federal Reserve), announced purchase plans of these central banks and J.P. Morgan Asset Management projections, converted to common currency by average monthly exchange rates.
Guide to the Markets – Asia. Data reflect most recently available as of 30.06.2020.

Forecasts, projections and other forward looking statements are based upon current beliefs and expectations, may or may not come to pass. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.
 

Market uncertainties persist

Market uncertainties persist
 

  • While the global economy is opening up from lockdowns, the road to full recovery is likely to be long and may take us to 2021 or beyond if a sustainable medical solution isn’t available. The possible revival of US-China trade tensions may also upset this recovery. 

  • Against this backdrop, investors are increasingly looking for alternative ways to broaden the sources of income for their portfolios.
     

Global economic growth struggling for full recovery2


2. Source: J.P. Morgan Economic Research, J.P. Morgan Asset Management.
Guide to the Markets – Asia. Data reflect most recently available as of 30.06.2020.
Forecasts, projections and other forward looking statements are based upon current beliefs and expectations, may or may not come to pass. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.

HOW DO WE HARVEST INCOME OPPORTUNITIES?

Seeking multiple income sources Seeking diversification^
Seeking multiple income sources

Seeking multiple income sources
 

  • 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 flexible approach. 

  • Income can be harvested from different sources, such as stock dividends and bond coupons, and these can be found globally across asset classes and regions3.
     

A range of income sources4

3. Yields are not guaranteed. Positive yield does not imply positive returns.
4. Source: Alerian, Bank of America, Bloomberg Finance L.P., Clarkson, Drewry Maritime Consultants, FactSet, Federal Reserve, FTSE, MSCI, NCREIF, Standard & Poor’s, J.P. Morgan Asset Management. Asset classes are based on FTSE NAREIT Global REITs Index (Global REITs), FTSE NAREIT USA REITs Index (US REITs), Bloomberg Barclays Global High Yield Index (Global HY bonds), J.P. Morgan Government Bond Index EM Global (GBI-EM) (Local currency EMD), J.P. Morgan Emerging Market Bond Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index Non-investment Grade (Asia HY bonds), MSCI Emerging Markets Index (EM equity), MSCI Emerging Markets High Dividend Yield Index (EM high dividend equity), MSCI World High Dividend Yield Index (DM high dividend equity), MSCI Europe Index (Europe equity), MSCI USA Index (US equity), US 10-Year Treasury Note (US 10-year). Yields of EM high dividend equity and DM high dividend equity were as of 31.05.2020. Yield is not guaranteed. Positive yield does not imply positive return. Past performance is not a reliable indicator of current and future results. Guide to the Markets – Asia 3Q 2020. Data reflect most recently available as of 30.06.2020.

Investments involve risk. Not all investments are suitable for all investors. Please seek financial advice before investing. Securities rated below investment grade are considered high-yield/ below investment-grade. Although they might provide higher yields than higher-rated securities, they could carry risk.

REITs: Real estate investment trusts; HY: High yield; EMD: Emerging market debt; USD: US dollar; EM: Emerging market; DM: Developed market.

 

Seeking diversification^

Seeking diversification^
 

  • Asset class performance varies under different market conditions. A diversified^ portfolio, as shown in the table, is better positioned to manage risks while paving the way for consistent performance. 

  • By dynamically adjusting the allocation of assets, portfolio managers can seek shelter in times of a down market and be positioned to capture growth opportunities as they arise.
     

Asset class returns vary5

^ Diversification does not guarantee positive return or eliminate risk of loss.

5. Source: Bloomberg Finance L.P., Dow Jones, FactSet, J.P. Morgan Economic Research, MSCI, J.P. Morgan Asset Management. The “Diversified” portfolio assumes the following weights: 20% in the MSCI World Index (DM Equities), 20% in the MSCI AC Asia Pacific ex-Japan (APAC ex-JP), 5% in the average of the MSCI EM Latin America and MSCI EM EMEA Indices (EM ex-Asia), 10% in the J.P. Morgan EMBIG Index (EMD), 10% in the Bloomberg Barclays Aggregate (Global Bonds), 10% in the Bloomberg Barclays Global Corporate High Yield Index (Global Corp. HY), 15% in J.P. Morgan Asia Credit Index (Asian Bonds), 5% in Bloomberg Barclays U.S. Aggregate Credit - Corporate Investment Grade Index (US IG) and 5% in Bloomberg Barclays U.S. Treasury – Bills (1-3 months) (Cash). Diversified portfolio assumes annual rebalancing. All data represent total return in U.S. dollar terms for the stated period. 10-year total return data is used to calculate annualised returns (Ann. Ret.) and 10-year price return data is used to calculate annualised volatility (Ann. Vol.) and reflects the period 30.06.2010 – 30.06.2020. Past performance is not a reliable indicator of current and future results. Guide to the Markets – Asia. Data reflect most recently available as of 30.06.2020.


Investments involve risk. Not all investments are suitable for all investors. Please seek financial advice before investing. Securities rated below investment grade are considered high-yield/ below investment-grade. Although they might provide higher yields than higher-rated securities, they could carry risk.

DM: Developed market; JP: Japan; EM: Emerging market; EMD: Emerging market debt; Corp. HY: Corporate high-yield; REITs: Real estate investment trust.

OUR INCOME SOLUTIONS
 

  • Given the gradual recovery, we expect governments and central banks will remain accommodative in the coming months to support households and businesses6.
  • Yields7 are likely to stay low and the hunt for income is expected to intensify. With the global economy stabilising, investors could seek yields7 in both equities and fixed income.
Multi-asset-income

Multi-asset income

  • JPMorgan Multi Income Fund
Global-fixed-income

Global fixed income

  • JPMorgan Funds – Income Fund
  • JPMorgan Global Bond Fund
Asia-fixed-income

Asia fixed income

  • JPMorgan Asian Total Return Bond Fund
  • JPMorgan Funds – China Bond Opportunities Fund

6. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations, may or may not come to pass. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.
7. Yield is not guaranteed. Positive yield does not imply positive return.

WHY J.P. MORGAN ASSET MANAGEMENT?

People, Teams & Assets Fixed Income Multi-Asset Solutions
People, Teams & Assets

1,000+
investment professionals

Equities
US$407 billion

Multi-asset solutions*
US$223 billion

Fixed income & liquidity
US$1.3 trillion

Alternative investments
US$120 billion

~US$1.9+ trillion
assets under management (AUM)

Source: J.P. Morgan Asset Management as of 31.03.2020. Past performance is not necessarily indicative of future performance.

* AUM figures do not include custom glide path and retail advisory assets.

Fixed Income

278
investment professionals^

9
locations

US$583 billion
assets under management (AUM)*

Source: J.P. Morgan Asset Management as of 31.03.2020.

^ Includes portfolio managers, research analysts, traders and investment specialists with VP title and above. 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.

* AUM figures are representative of assets managed by the Global Fixed Income, Currency & Commodities group and include AUM managed on behalf of other J.P. Morgan Asset Management investment teams.

Multi-Asset Solutions

87
investment professionals^

19
locations

US$223 billion
assets under management (AUM)*

Source: J.P. Morgan Asset Management as of 31.03.2020.

^ Includes portfolio managers, research analysts, traders and investment specialists with VP title and above. 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.

* AUM figures exclude retail advisory and glide path portfolios.

ACTIONABLE IDEAS FOR INCOME

A multi-income journey into the emerging high-yield potential

Income investors like us have stayed the course as we ride through the four seasons. Where do we see income opportunities?

Read More

Curious about income investing? We share 4 FAQs

How much do you know about income investing amid an evolving market environment?

Read More

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

Securitisation 101: making optimal use of securitised debt

Let’s explore the role securitised debt could play in an investment portfolio.

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

Scenarios of an expected global economic recovery

We describe three case scenarios for economic recovery after the pandemic subsides.

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

Positioning for yield in time for a global restart

As liquidity conditions improved, our portfolio manager shares how we are positioned for income opportunities across asset classes.

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

Multi-asset income strategies in unique times

As the search for quality income gets challenging, a diversified multi-asset income solution could be considered to broaden income potential.

Read More

2Q 2020 bonds: weathering a market storm

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

Read More

Taking steps to stay on top of volatility

A diversified portfolio with a defensive bias could help build portfolio resilience while seeking yield opportunities.

Read More

Adding a fitting pace to your income portfolio

Diversify your income sources to help navigate uncertain markets.

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

Repositioning for income potential in uncertain times

Our multi-asset fund manager shares how he repositions for income in uncertain times.

Read More

Some investing dos and don’ts when markets are volatile

Some investing ‘dos & don’ts’ as you navigate market volatility in uncertain times.

Read More

Investing during the COVID-19 outbreak: 4 topmost concerns

As COVID-19 continues to evolve, our strategists share 4 topmost concerns among Asia’s investors.

Read More

Retiring in Hong Kong: mind the expectation gap

For younger workers in Hong Kong, there appears to be a gap in expectations and reality on their funding needs for retirement.

Read More

The little red envelope savings guide

As you welcome the Year of the Rat, plan to make your “lucky money” work harder for you.

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

Investing in a world of ultra-low rates

Lower returns from bonds could pose a challenge to long-term investors.

Read More

Q&A: Don’t let your money retire before you

Make your money continue to work for you in retirement until you don’t need it any more.

Read More

Aim for an A+ in your retirement planning

Take action now, start saving and investing for your retirement.

Read More

3 retirement ‘life hacks’ you need to know

Novelty methods that can help you plan for retirement.

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

What is key in a tailor-made retirement plan?

You shouldn't miss out these 3 factors when planning for retirement.

Read More

The secret to effective diversification

Diversification sounds easy, but how to do it effectively?

Read More

Returns, income or yields are not guaranteed. Value of investments or income accruing from them may rise or fall.
Diversification does not guarantee investment return and does not eliminate the risk of loss.
This information is generic, not tailored to any specific individual circumstances and should not be construed as investment advice. Risk management does not imply elimination of risks. Investments involve risks and are not similar or comparable to deposits, not all investments are suitable for all investors. Please seek financial advice and make independent evaluation before investing.

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For more information, please call or email us. You can also contact your J.P. Morgan representative.

(852) 2978 7788

agents.info@jpmorgan.com

J.P. Morgan Asset Management

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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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