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
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
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.
- Macroeconomic Data: Growth, inflation, etc.
- Corporate Health: Defaults, earnings, etc.
- ESG Profile: Carbon footprint, labour practices, etc.
- Proprietary Quantitative Research (QRG) models inform rich/cheapness of sector
- Absolute, relative, historical basis.
- Supply / demand (issuance and flows).
- Investor positioning and momentum.
- 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.
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.
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.
out more about how we define and approach ESG integration at J.P. Morgan Asset
Corporates: 40-question ESG
- 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)
Securitised: Quantifying leaders
- 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
- 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.
- 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.
- 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.