Outlook 2021: portfolio positioning with ‘G.P.S.’
Uneven recoveries in 2021 would imply the need for more active management.
What is securitisation? Let’s explore the potential benefits it can bring to your investment portfolio.
What are mortgage-backed securities? Let’s explore the potential benefits it can bring to your investment portfolio.
Market uncertainties have reinforced the dovish bias for central banks. As monetary policy remains accommodative in this environment and lower government bond yields likely to persist, investors may need to explore the full spectrum of fixed income to broaden their sources of income opportunities.
As different fixed income sectors have varied correlations with each other, having a broad mix of sectors brings potential diversification* benefits to a portfolio and may achieve lower volatility than those of individual sectors.
* Diversification does not guarantee investment returns and does not eliminate the risk of loss.
ACCESS 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.
FUNDAMENTAL
QUANTITATIVE (valuations)
Rich or cheap valuation on:
TECHNICALS
# The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
Unconstrained fixed income approach
Investing opportunistically across multiple debt markets and sectors without benchmark constraints, the fund managers can focus on their top convictions to capture attractive income opportunities for a given level of risk. With an unconstrained approach, the fund managers navigate dynamically in changing market conditions.
A wider opportunity set
The Fund invests in a wide range of fixed income securities, covering traditional and non-traditional fixed income, allowing for a wider source of income.
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 4.8% or above since launch. (*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-Dec 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.
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 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-Dec 2020, NAV to NAV in USD with income reinvested). SFC authorisation is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. Fund refers to the USD (acc) Class. Volatility based on monthly data. Calendar year return: 2016 +7.9%;2017 +6.1%;2018 +0.4%;2019 +11.4%;2020 +3.0%. Past performance is not indicative of future performance.
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-Dec 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.
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 2019 and 2020 for his outstanding fund management.
Lipper Fund Awards Hong Kong 2019 Best Fund over 3 Years – Bond Global ^ |
Fund Selector Asia Awards Hong Kong 2020 Global Bond – Platinum* | 2020 Citywire Asia Awards Hong Kong Best Fund Manager Award - Global Bonds+ |
^ 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 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 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 pastperformance or success of any such professional serves as an indicator of such professional's future performance or success.