Bond markets change. Disciplined investing is timeless.
It takes deep resources and specialised expertise to successfully navigate complex bond markets. Whether you’re seeking yield, total return or stability, J.P. Morgan’s time-tested, globally integrated investment processes bring our intensive research, diverse talents and rigorous risk management to your portfolio.
306
Specialist fixed income professionals
USD 626bn
Global fixed income assets under management
8
Fixed income investment hubs in five countries
Source: J.P. Morgan Asset Management; as of 30 September 2022.
Specialist fixed income expertise
Benefit from the deep resources and rigorous research of a truly global fixed income manager, backed by a time-tested investment process where risk management is embedded at every level.
A truly global investment platform
With portfolio managers and sector analysts based in five countries and three continents, our research reaches every corner of the global fixed income markets.
Our global fixed income team has the experience and global reach to access opportunities across more than 15 fixed income sectors and in bond markets covering over 50 countries.
Broad fixed income sector coverage
- Government bonds
- US high yield
- European high yield
- Convertible bonds
- Investment grade credit
- Emerging market local currency sovereigns
- Emerging market hard currency sovereigns
- Municipal bonds
- Emerging market corporate bonds
- Asset-backed securities
- Non-agency mortgage-backed securities
- Agency mortgage-backed securities
- Commercial mortgage-backed securities
- Covered bonds
- Collateralised loan obligations
- Currency
Source: J.P. Morgan Asset Management; data as of 30 September 2022. Investors indicate portfolio managers/traders and research analysts who are vice president level and above.
Research-driven security selection
Every investment decision is assessed using a common research language, allowing us to compare opportunities in different fixed income securities, sectors and markets.
Our common research language is the foundation of our consistent and repeatable investment process, with every fixed income issuer covered by our sector analysts assessed based on rigorous fundamental, quantitative (valuation) and technical analysis.
Fundamentals
- Macroeconomic Data: Growth, inflation, etc.
- Corporate Health: Defaults, earnings, etc.
- ESG Profile: Carbon footprint, labour practices, etc.
Quantitative (valuations)
- Proprietary Quantitative Research (QRG) models inform rich/cheapness of sector or security.
- Absolute, relative, historical basis.
Technicals
- Supply / demand (issuance and flows).
- Investor positioning and momentum.
Continuous dialogue
- Teams leverage the expertise of the locally based specialists.
- Analysts and traders closely integrated with portfolio managers.
Integrated ESG approach
We assess financially material environmental, social and governance risks as part of our broader investment process, ensuring that ESG factors are taken into account across our actively managed fixed income portfolios.
The systematic integration of ESG factors, along with other factors, into our actively managed fixed income portfolios helps us identify and act upon financially material risks and opportunities, with a nuanced approach for each sector team. ESG integration does not, however, change a strategy’s investment objective, exclude specific types of companies or constrain a strategy’s investable universe.
1. Proprietary research
ESG factors incorporated in existing fundamental, quantitative and technical framework using proprietary scoring frameworks that address nuances across fixed income sectors.
2. Engagement
Frequent engagement with company management teams, participation in industry forums and engagement with data providers to increase coverage and accuracy of fixed income universe.
3. Portfolio construction
ESG evaluations serve as security selection differentiators within a sector or as a top-down risk assessment tool, with ESG outliers identified by oversight from independent and fixed income risk management teams.
Proprietary research
We use proprietary quantitative ESG rating systems, by fixed income sector, to complement our qualitative analyst research. Our proprietary ESG scores are developed by our Sustainable Investing team to support the quantitative ESG analysis of our fixed income investment team, and also to help inform qualitative assessments of individual companies.
The purpose is to provide portfolio managers and research analysts with useful ESG information that they might not otherwise have access to, as well as to facilitate ESG integration and investment stewardship. Our scores provide another reference point to enhance the consideration of financially material ESG risks and opportunities in active investment processes.
Find out more about how we define and approach ESG integration at J.P. Morgan Asset Management
Corporates: 40-question ESG checklist
- Informs discussions between analysts and portfolio managers
Sovereigns: Country ESG scores
- Process results in a score for each sovereign issuer in developed (DM) and emerging (EM) markets
Securitised: Quantifying leaders & laggards
- Securities scored as leader (+1), neutral (0) or laggard (-1) on each E, S and G pillar
Multi-layered risk management
Risk is managed actively at every stage of our investment process, with key risks continuously monitored by portfolio managers, and additional layers of oversight provided by investment directors and independent risk teams.
Disciplined risk management is essential to all our fixed income strategies. Our three tiers of risk management ensure risks are monitored at every level of our fixed income process.
Active management demands active risk management
Portfolio management
- Has day-to-day responsibility for portfolio risk and adherence with guidelines.
- Ensures risks are intended.
- Monitors ESG risks and opportunities.
- Uses proprietary and external systems to analyse risks: tracking error, contribution to risk, factor exposure, liquidity.
Investment directors
- Provides portfolio management oversight by monitoring adherence to investment objectives and guidelines.
- Lead in depth quarterly investment strategy reviews with portfolio managers (performance, risk, ESG profile, dispersion).
- Provides customised risk monitoring within the asset class.
Independent risk
- Provides credible challenge to the business.
- Has a consolidated view of risks to senior management.
- Plays a key role in governance forums.
- Ensures proper risk disclosure.
- Reports to independent AM Chief Risk Officer.
Our fixed income funds
Whether you’re investing for income, looking to manage volatility, or you want to add a new source of return and diversification to an existing portfolio, our range of bond funds is designed to help you achieve your goals.
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