In an environment where rates are likely to stay low, we believe the search for yield is still possible but it may require moving along the risk spectrum. A flexible fixed income strategy that invests opportunistically across multiple debt sectors and markets could help capture a broader set of potential income sources while managing risk.
1. High-yield credit refers to corporate bonds which are given ratings below investment grade and are deemed to have a higher risk of default. For illustrative purposes only, exact allocation of portfolio depends on each individual’s circumstances and market conditions. Yield is not guaranteed. Positive yield does not imply positive return.
2. Yield is not guaranteed. Positive yield does not imply positive return.
3. Diversification does not guarantee investment return and does not eliminate the risk of loss.
4. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions. Provided for information only, not to be construed as investment recommendation. Investments involve risks, not all investment ideas are suitable for all investors.
5. Source: “Portfolio Insights – Global Fixed Income Views 1Q 2020”, J.P. Morgan Asset Management.
6. Source: Barclays, Bloomberg, FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg Barclays US Aggregate Credit – Corporate High Yield Index (US Corporate HY), Bloomberg Barclays US Aggregate Credit – Corporate Investment Grade Index (US Corporate IG), J.P. Morgan Government Bond Index – EM Global (GBI-EM) (Local EMD), J.P. Morgan Emerging Market Bond Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index (JACI) (USD Asian Bonds), Bloomberg Barclays Pan European High Yield (Europe HY), J.P. Morgan Government Bond Index – Global Traded (DM Govt), J.P. Morgan Asia Credit High Yield Index (Asia HY), Bloomberg Barclays Global US Treasury – Bills (3-5 years) (US Treasury) and Bloomberg Barclays US Treasury – Bills (1-3 months) (Cash). Positive yield does not imply positive return. Past performance is not a reliable indicator of current and future results. Data reflect most recently available as of 31.12.2019.
7. Average annual real deposit rate is based on respective market’s deposit rate less year-over-year inflation. Source: FactSet, International Monetary Fund, various central banks, J.P. Morgan Asset Management. Past performance is not a reliable indicator of current and future results. Data reflect most recently available as of 31.12.2019.
8. Source: J.P. Morgan Asset Management (USD (acc) class return as of 29.11.2019, NAV to NAV in USD with income reinvested). Volatility based on monthly data. Past performance is not a reliable indicator of current and future results.
9. Source: J.P. Morgan Asset Management, USD (mth) class annualised yield as of end-November 2019. Annualised yield is calculated based on the latest dividend distribution with dividend reinvested, and may be higher or lower than the actual annual dividend yield. Past payout yields and payments do not represent future payout yields and payments. Positive distribution yield does not imply positive return. Dividend is not guaranteed. Distributions may be paid out of capital an investor originally invested which includes realised losses if any and unrealised capital gains or losses attributable to that original investment; or paid out of distributable income which includes realised gains calculated on a per transaction basis net of fees and expenses, or paid out of both capital and distributable income. Any payments of distributions by the Fund are expected to result in a decrease in the net asset value per share on the ex-dividend date. Please refer to further income disclosures on https://am.jpmorgan.com/sg/en/asset-management/per/.
10. Source: Barclays Live, J.P. Morgan Asset Management. Data as of 30.11.2019. Volatility is realised annualised volatility based on monthly data since the inception of JPMorgan Funds – Income Fund. Indexes used are: the Bloomberg Barclays US Treasury Index (US Treasuries), the Bloomberg Barclays US Mortgage Backed Securities Index (MBS), the Bloomberg Barclays Global Aggregate Corporate Index (Global IG Corp) and the Bloomberg Barclays US Corporate High Yield Index (US Corp HY). Past performance is not a reliable indicator of current and future results.
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