Bonds are back
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 appearing attractive for the first time in years, the role of bonds has been restored.
1.
Fixed income has experienced a dramatic repricing and valuations now look attractive. Real government and corporate bond yields are at multi-decade highs, giving investors the opportunity to find the income they need.
2.
Inflation should continue to moderate in 2023 as the impulse from food and energy prices fades and the global economy weakens. As a result, we think central banks should be able to pause their rate hiking cycles.
3.
An environment of lower inflation and less aggressive central bank action should allow bonds to serve as a diversifier against recession risks by rising in price if equity prices come under pressure.
To capitalise on the world of opportunities opening up as bond markets recover, while managing uncertainties such as the path of interest rates and inflation, it makes sense to choose a flexible, global approach.
Unconstrained bond investing allows investors to explore all avenues to seek total return, income and volatility management, with expert managers dynamically adjusting asset allocation and duration as market conditions evolve.
No benchmarks, no bias, no borders
At J.P. Morgan Asset Management, our cross-sector expertise and deep research resources enable us to invest across the global bond universe, building dynamic fixed income portfolios for a range of risk appetites and goals.
Our disciplined investment process combines top-down and bottom-up analysis, with a common research framework to integrate ideas.
1 Source: J.P. Morgan Asset Management, as of 31 December 2022.
2 In actively managed assets deemed by J.P. Morgan Asset Management to be ESG integrated under our governance process, we systematically assess financially material ESG factors amongst other factors in our investment decisions with the goals of managing risk and improving long-term returns. ESG integration does not change a strategy’s investment objective, exclude specific types of companies or constrain a strategy’s investable universe.
Unconstrained fixed income funds for diverse objectives
JPMorgan Funds - Global Strategic Bond Fund
Seeks an attractive risk-adjusted return profile over time, with a focus on mitigating downside risk.
JPMorgan Funds - Global Bond Opportunities Sustainable Fund
Aims to generate attractive total returns over time, with an explicit focus on sustainability.
JPMorgan Funds - Income Fund
Seeks the highest income consistent with a prudent level of risk.
JPMorgan Funds - Global Bond Opportunities Fund
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.
Discover the fund >ESG approach
The fund promotes social and/or environmental characteristics, but does not have sustainable investing as a core objective (SFDR Article 8).
Risk/return vs. key market indices (EUR, gross of fees, since fund inception)
JPMorgan Funds – Global Strategic Bond Fund
Investment objective
To achieve a return in excess of its benchmark by exploiting investment opportunities in, amongst others, the debt and currency markets, using derivatives where appropriate.
Discover the fund >ESG approach
The fund promotes social and/or environmental characteristics, but does not have sustainable investing as a core objective (SFDR Article 8).
Rolling 1 year performance (EUR, gross of fees)
JPMorgan Funds – Global Bond Opportunities Sustainable Fund
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).
Discover the fund >ESG approach
The fund promotes social and/or environmental characteristics, but does not have sustainable investing as a core objective (SFDR Article 8).
Seeking to maintain sustainability above the fixed income universe
Sector ESG scores vs. relative fixed income universe
JPMorgan Funds – Income Fund
Investment objective
To provide income by investing primarily in debt securities.
Discover the fund >ESG approach
The fund promotes social and/or environmental characteristics, but does not have sustainable investing as a core objective (SFDR Article 8).
Seeks to provide attractive yield with lower volatility than individual sectors
Your partner for the bond recovery
For investors re-evaluating portfolios in this new dawn for bond investing, 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.
Learn more >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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