JPMorgan Funds – Income Fund
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Planning
With the further easing of pandemic curbs, more people are ready to travel again.
When planning a journey, you will consider factors such as the season and destination before making your travel reservations. Likewise, when it comes to investing, you will keep in mind market conditions such as elevated inflation, rising interest rates and slower economic growth as these may impact your investment decision1.
Current economic data shows recession risk rising in the US over the next 6-12 months. Although in our view this risk will partly offset by a robust job market, corporate spending and the reopening of more economies in Asia, there is still a need to build a resilient and diversified portfolio based on their investment objectives and risk appetite.
In a changing market environment, investors can build resilient portfolio by seeking income opportunities across a broader investment spectrum.
Video
Income ideas explained in 2 minutes
(Video in Chinese only)
Packing
Having a packing checklist can help ensure that you do not miss out on the essentials. Similarly, here are some considerations investors look at as they seek to build stronger income portfolios.
With this checklist, you are ready to start your income journey! Check out J.P. Morgan’s income strategies now.
Plan and pack with J.P. Morgan’s income strategies
Flexible income exposure
Investing in almost 2,000 securities, the Fund seeks out income opportunities across the entire fixed income spectrum with active duration management amid a changing interest rate environment.
0-10 years
The possible duration range of the Fund
Source: J.P. Morgan Asset Management, as of end-December 2022. The Fund is an actively managed portfolio; holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk. Duration is a measure of the sensitivity of the price (the value of the principal) of a fixed income investment to a change in interest rates and is expressed as number of years.
Seeking consistent payout
With diversified income sources, the Fund strives to deliver consistent income. As of end-January 2023, the distribution yield of the Fund’s Class A (mth) - USD was
5.67%*
whereas yield as of end-December 2022 was 5.78%*
(*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital Refer to important information3.)
Source: J.P. Morgan Asset Management. Positive distribution yield does not imply positive return. 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 annual dividend yield.
Outperformance against peers
The Fund delivered stronger cumulative returns relative to its peer group average over the 1-year, 3-year and 5-year horizons.
Source: J.P. Morgan Asset Management, Morningstar, Inc, as of end-December 2022, NAV to NAV in USD with income reinvested. Peer group refers to Global Bond USD Flexible Bond Category . Fund refers to the Class A (acc) - USD. Calendar year return: 2017 +6.1%; 2018 +0.4%; 2019 +11.4%; 2020 +3.0%; 2021 +2.2%; 2022 -8.2%. Past performance is not indicative of future performance.
Diverse income from bonds and equities
Investing across 90+ markets and 15+ asset classes, the
2,900+ holdings
in the Fund can help bring about the diversification of income and risks.
Source: J.P. Morgan Asset Management, as of end-December 2022. 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. Diversification and risk diversification do not guarantee investment return and does not eliminate the risk of loss. The Fund is an actively managed portfolio; holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
Increased annualised payout
Distribution yield of the Fund has increased since early 2023. As of end-January 2023, the yield of Class (mth) - USD is
6.95%*
whereas yield as of end-December 2022 was 5.80%*
(*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions maybe paid from capital Refer to important information3.)
Source: J.P. Morgan Asset Management. Positive distribution yield does not imply positive return. 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 annual dividend yield.
Time-tested performance
In the 1035 quarterly investment cycles since launch, the Fund registered positive returns in
92%
of the cycles. Cumulative returns since the Fund’s launch were 67.8% and it has been ranked in the first quartile among peers.
Source: J.P. Morgan Asset Management, Morningstar, Inc, as of end-December 2022. Fund refers to the Class (mth) – USD, NAV to NAV in USD with income reinvested. Launch date of Class (mth) - USD: 09.09.2011. Performance of quarterly investment cycles refer to cumulative returns from the beginning of every quarter to the end of every quarter afterwards, calculated since the beginning of the quarter that the Fund was launched. In a total of 1035 cycles, 953 cycles gained positive returns. The opinions and views expressed here are those held by the author at the date of publication which are subject to change and are not to be taken as or construed as investment advice. Calendar year return: 2017 +10.6%; 2018 -5.0%; 2019 +14.8%; 2020 +4.7%; 2021 +9.1%; 2022 -12.2%. Peer group refers to USD Moderate Allocation Category. Past performance is not indicative of future performance.
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From now until 29 Dec 2023, J.P. Morgan eTrading existing customers and new customers who have started monthly investment by registration or opening an account online, can enjoy a special LIFETIME offer*.
Income investment ideas
Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
Diversification does not guarantee investment return and does not eliminate the risk of loss. Yields are not guaranteed. Positive yield does not imply positive return.
- 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. Provided to illustrate general trends and macro views, not tailored to any specific individual's objectives or circumstances, not to be construed as offer, research or investment advice. There is no guarantee the objectives will be met. Investors should seek financial advice, refer to offering documents and make independent evaluation before investing.
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.