Time travel with our portfolio managers to discover the Fund’s dynamic asset allocation over the past decade*.

Q: How did you beat the odds during the global financial crisis in 2008 and launched a new fund?

A: December 2008 was not the easiest time to launch a new fund. With interest rates headed towards zero and income from traditional sources drying up, our new multi-asset income strategy’s ability to scour the world for yield while aiming to manage risks quickly proved appealing for income-starved investors. Our aim is to generate an attractive income⁺, but never to overstretch for yield.

Q: How do you seek to capture the best opportunities?

A: The Fund’s success is built on its ability to leverage J.P. Morgan Asset Management’s global investment platform. By working closely with our specialist investment teams, we’re able to access a broad range of asset classes, invest across multiple markets and sectors, and optimise opportunities across the capital structure which the portfolio managers believed were attractive.

Q: What is your asset allocation strategy for this Fund?

A: We don’t have a set asset allocation – instead we have the flexibility to look for opportunities at any point in time we believe are attractive and could provide effective diversification* and an attractive yield for the portfolio.

Q: Can you share some examples of how you seek attractive opportunities?

A: At launch, for example, we built a large allocation to US high-yield bonds, based on our belief that the sell-off in reaction to the global financial crisis was not justified by expectations for corporate default rates – a conviction that benefited the Fund as the global economy stabilised.

Also at launch, we invested in US non-agency mortgages – an area of the bond market where our specialist investment expertise was able to optimise income opportunities created by the US subprime crisis that many other funds might not had been able to access.

We added an allocation to European peripheral bonds in 2013, taking advantage of attractive valuations as markets recovered from the eurozone debt crisis. As yields on these bonds subsequently normalised we began to switch exposure into a dedicated allocation to European income equities as the European economy recovered.

We added to emerging market equities in 2015 as weakness in South Africa and Brazil created attractive dividend prospects. We also made an allocation to preferred equities in 2012 to access strong income and growth opportunities in this sector, illustrating how the Fund has optimised opportunities across the capital structure which the portfolio managers believed were attractive.

Q: How do you remain steadfast in meeting income needs?

A: A lot has changed since December 2008, but the Fund has maintained its commitment to balance income, risk and return on a daily basis. It’s a philosophy that has served the needs of our clients well over the last 10 years, and one that we believe can continue to deliver attractive income opportunities to investors over the decade to come.

*Past performance is not indicative of future results. For illustrative purposes only, not to be construed as Investment recommendation. Diversification does not guarantee positive returns or eliminate risk of loss.

⁺The investment objective of the Fund is to provide regular income by investing primarily in a portfolio of income generating securities, globally, and through the use of financial derivative instruments. Dividend distributions if any are not guaranteed and are made at the manager’s discretion. The Fund seeks to achieve its investment objectives stated in the offering documents, there can be no guarantee the objectives will be met. Investors should review the fund offering document (s) before investing.