Fixed income has historically played two roles in portfolios: providing income and offering diversification against riskier assets if the growth outlook deteriorates. With the ultra-low interest rate environment at an end and valuations having reset, we believe that bonds can once again play an important role in a diversified portfolio.
Fixed income has experienced a dramatic repricing since the start of 2022, with government and corporate bond yields now back above 20-year averages. This allows investors to find the income they need without being forced further and further out along the risk spectrum.
Inflation has moderated substantially over the course of the past year, and signs of cooling in the labour market are emerging. After two years of aggressive central bank rate hikes around the globe, we think that 2024 will be a year of rate cuts.
As central banks ease their foot off the brake, this should allow bonds to serve as a diversifier in a recessionary scenario, by rising in price if equity prices come under pressure.
Whether you’re looking for a flexible, global approach, a core portfolio building block or sustainable opportunities, our fixed income strategies provide a comprehensive range of solutions.
Unconstrained
Core
Sustainable
ETFs
Investment Objective
To achieve a return in excess of the benchmark by investing opportunistically in an unconstrained portfolio of debt securities and currencies, using derivatives where appropriate.
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Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG Approach - ESG Promote
Promotes Environmental and / or social characteristics.
SFDR classification: Article 8
“Article 8” strategies promote social and/or environmental characteristics, but do not have sustainable investing as a core objective.
Key Risks
The Sub-Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective. The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Sub-Fund. Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.
Investment risks Risks from the Sub-Fund's techniques and securities
Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities
Outcome to the Shareholder Potential impact of the risks
Loss
Shareholders could lose some or all of their money.
Volatility
Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund’s objective.
Investment Objective
The Fund aims to provide a positive return, before fees, which is higher than that of the Fund's Benchmark (ICE BofA SONIA Overnight Rate Index ) over a rolling 3 year period in all market conditions. A positive return is not guaranteed over this or any time period and capital loss may occur.
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Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG approach - Integrated
This fund considers financially material Environmental, Social and Governance (ESG) factors in investment analysis and investment decisions, with the goal of enhancing long-term, risk-adjusted financial returns.
Key Risks
The Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective. The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Fund. Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.
Investment risks Risks from the Sub-Fund's techniques and securities
Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities
Outcome to the Shareholder Potential impact of the risks
Loss
Shareholders could lose some or all of their money.
Volatility
Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund’s objective.
Investment Objective
To achieve a return in excess of the benchmark by investing opportunistically in an unconstrained portfolio of debt securities (positively positioned towards Debt Securities with positive E/S characteristics and debt securities issued by companies and countries that demonstrate improving E/S characteristics) and currencies, using derivatives where appropriate. Debt Securities with positive E/S characteristics are those that the Investment Manager believes have been issued by companies and countries that demonstrate effective governance and superior management of environmental and social issues (sustainable characteristics).
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Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG approach - Positive tilt
An investment style in which the portfolio will be tilted towards companies / issuers with positive ESG characteristics.
SFDR classification: Article 8
“Article 8” strategies promote social and/or environmental characteristics, but do not have sustainable investing as a core objective.
Key Risks
The Sub-Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective. The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Sub-Fund. Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.
Investment risks Risks from the Sub-Fund's techniques and securities
Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities
Outcome to the Shareholder Potential impact of the risks
Loss
Shareholders could lose some or all of their money.
Volatility
Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund’s objective.
Investment Objective
To achieve a long-term return in excess of the Benchmark by investing primarily in debt securities where proceeds are directed to projects and activities that contribute towards a sustainable and inclusive economy.
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Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG Approach - Thematic
Investments in themes or assets specifically related to sustainability.
SFDR classification: Article 9
“Article 9” strategies have a sustainable Investment objective.
Key Risks
The Sub-Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective. The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Sub-Fund. Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.
Investment risks Risks from the Sub-Fund's techniques and securities
Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities
Outcome to the Shareholder Potential impact of the risks
Loss
Shareholders could lose some or all of their money.
Volatility
Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund’s objective.
Investment Objective
To achieve a return based on a combination of income and capital growth by investing at least 80% of the Fund’s assets in investment grade Sterling denominated bonds (or other bonds hedged back to Sterling), using derivatives where appropriate.
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Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG Approach - Integrated
This fund considers financially material Environmental, Social and Governance (ESG) factors in investment analysis and investment decisions, with the goal of enhancing long-term, risk-adjusted financial returns.
Key Risks
The Sub-Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective. The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Sub-Fund. Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.
Investment risks Risks from the Sub-Fund's techniques and securities
Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities
Outcome to the Shareholder Potential impact of the risks
Loss
Shareholders could lose some or all of their money.
Volatility
Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund’s objective.
Investment Objective
The Sub-Fund aims to provide current income while seeking to maintain a low volatility of principal.
Discover the fund >
Based on share class volatility for the past 5 years. See Key Investor Information Document (KIID) for details.
ESG information
ESG approach – ESG Promote
Promotes Environment and / or social characteristics
SFDR classification: Article 8
“Article 8” strategies promote social and/or environmental characteristics, but do not have sustainable investing as a core objective.
Key Risks
The value of your investment may fall as well as rise and you may get back less than you originally invested. The value of debt securities may change significantly depending on economic and interest rate conditions as well as the credit worthiness of the issuer. Issuers of debt securities may fail to meet payment obligations or the credit rating of debt securities may be downgraded. These risks are typically increased for below investment grade debt securities which may also be subject to higher volatility and lower liquidity than investment grade debt securities.The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency. Asset-backed, collateralised loan obligations and mortgage-backed securities may be less liquid than other securities in which the SubFund will invest, subject to adverse changes to interest rates and to the risk that the payment obligations relating to the underlying assets are not met. The Sub-Fund may be concentrated in the banking industry and in the UK sectors, markets and/or currency. As a result, the Sub-Fund may be more volatile than more broadly diversified funds. Exclusion of issuers that do not meet certain ESG criteria from the Sub-Fund's investment universe may cause the Sub-Fund to perform differently compared to similar funds that do not have such a policy. Movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that will be used to minimise the effect of currency fluctuations may not always be successful. Further information about risks can be found in the "Risk Information" section of the Prospectus.
For investors evaluating portfolios as bond market conditions evolve, J.P. Morgan Asset Management offers fixed income solutions that span the risk spectrum, underpinned by the deep resources and rigorous research of a truly global platform.
For Professional Clients/ Qualified Investors only – not for Retail use or distribution.
This is a marketing communication. The views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. The value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
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