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    1. Managing volatility

    Stay INformed. Don’t let short-term volatility derail you

    Markets move in cycles and through peaks and troughs, and keeping a focus on long-term financial goals while seeking out growth & income opportunities can help build stronger portfolios.

     

    Stay INvested. Let a diversified portfolio work for you

    Diversifying across global markets as we build a suite of income & growth investment solutions designed to achieve long-term investment outcomes.

     

    Navigating market volatility

    The wild swings in global markets can be unsettling. But volatility is normal as investing can involve significant drawdowns from time to time. Undoubtedly, almost all investors are challenged by their emotions and natural biases when making investment decisions. The impulse to get in when things look good and out when things look bad can be overwhelming, but data shows us that investors tend to pick exactly the wrong time to do so, as illustrated below.

    Market timing of retail investors

     

     

    Source: FactSet, Investment Company Institute, Standard & Poor’s, J.P. Morgan Asset Management. Mutual fund and exchange-traded funds (ETF) flows are through 31.12.2021. Data reflect most recently available as of 31.12.2021.

    As illustrated by the blue-coloured line, US equity mutual fund inflows have tended to peak very near to when the market does - investors get caught up in the fear of missing out and put their money in right when the market is at its most expensive - and vice versa.

    Be mindful of the volatility that you can handle - troubled times aren’t a sign to sell everything. Markets move in cycles and through peaks and troughs - it is almost unheard of for performance to only ever move upward. When popular signals start to indicate difficult times ahead, it can still pay to remain invested.

    Staying invested matters

    Various asset classes have low or negative correlation to each other. Even at times when the equity market is struggling, the bond market presents opportunities for income and yield. Fixed income comes with its own risks when rates are rising, but bonds have a role as a part of the overall portfolio to help lower volatility while seeking income opportunities.

    Despite all of the difficulties faced by markets over the decade, as illustrated below, various asset classes outperformed cash over long term. A well-diversified portfolio1 of stocks and bonds (in blue) returned an average of 7.3% per year with lower volatility (at 8.3%) than a pure equity portfolio.

     

    Asset class returns

    Source: Bloomberg Finance L.P., Dow Jones, FactSet, J.P. Morgan Economic Research, MSCI, J.P. Morgan Asset Management. Past performance is not a reliable indicator of current and future results. The “Diversified” portfolio assumes the following weights: 20% in the MSCI World Index (DM Equities), 20% in the MSCI AC Asia Pacific ex-Japan (APAC ex-JP), 5% in the MSCI EM ex-Asia (EM ex-Asia), 10% in the J.P. Morgan EMBIG Index (EMD), 10% in the Bloomberg Barclays Aggregate (Global Bonds), 10% in the Bloomberg Barclays Global Corporate High Yield Index (Global Corporate High Yield), 15% in J.P. Morgan Asia Credit Index (Asian Bonds), 5% in Bloomberg Barclays U.S. Aggregate Credit – Corporate Investment Grade Index (U.S. IG) and 5% in Bloomberg Barclays U.S. Treasury – Bills (1-3 months) (Cash). Diversified portfolio assumes annual rebalancing. All data represent total return in U.S. dollar terms for the stated period. 10-year total return data is used to calculate annualised returns (Ann. Ret.) and 10-year price return data is used to calculate annualised volatility (Ann. Vol.) and reflects the period 31.12.2011 – 31.12.2021. Please see disclosure page at end for index definitions. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Data reflect most recently available as of 31.12.2021.

    1 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. 

    Diversification does not guarantee investment return and does not eliminate the risk of loss. Yield is not guaranteed. Positive yield does not imply positive return.


    Explore our featured funds

    • JPMorgan Investment Funds – Global Income Fund
    • JPMorgan Funds - Asia Pacific Income Fund
    • JPMorgan Funds - Income Fund
    • JPMorgan Investment Funds - Global Select Equity Fund

     

    About us

    J.P. Morgan Asset Management believes investors deserve an expert global partner they can trust to deliver strong outcomes. We help clients see correlations and seize opportunities to solve their toughest challenges. As of 31 December 2021, we had over US$2.6+ trillion of assets under management.

    Investment expertise Our investment solutions are designed to focus on our clients’ long-term goals.
    Digital tools We continuously advance our state-of-the art digital tools to bridge the gap between ideas and reality to build stronger portfolios.
    Clear, actionable Insights We analyse economic trends and see correlations to identify risks, sharing our perspective continuously through applied intellectual capital.
    Sustainable Investing Our approach to active investing includes environmental, social and governance (ESG) integration, expansive ESG-enhanced investment stewardship to influence positive company actions to enhance potential long-term return, and a range of ESG-focused strategies.


    Our actionable insights on income & growth

    You can’t be a step ahead of the market, but you can be ahead in your investing. Access our investment ideas.

    Climate change: a sustainable investing megatrend

    We discuss five megatrends related to climate change and the investment implications.

    Read more

    Investing for a changing world

    We share our perspectives of sustainable investing in an overall portfolio.

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    Positioning a fixed income portfolio for rising rates? We share 3 pointers

    We share our perspectives on positioning for income as rates rise.

    Read more

    1Q 2022 outlook: bonds still matter even as inflation stays elevated

    We share our views on the bond themes and opportunities for the first quarter of 2022.

    Read more

    Seeking diversification in a ‘prosperity pot’ to help drive income opportunities

    Consider diversity across regions, assets and sectors in an income portfolio.

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    Seeking long-term growth opportunities among the old & new in ASEAN

    ASEAN is gaining momentum with its mix of old & new economies.

    Read more

    Emerging growth opportunities when consumption goes ‘all about me’

    We share our views on how increasing demand for personalised products and services presents growth opportunities.

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    2022 outlook: what’s top of mind for income & growth?

    We share our perspectives on the investment landscape for 2022 and the opportunities for income and growth.

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    Spotlight on healthcare investing: is the smart pen mightier than the sword?

    Increasing demand for healthcare services globally is presenting growth opportunities.

    Read more

    Seeking out income opportunities in dividend stocks amid uncertain times

    Dividend stocks are back on investors’ radar as relatively attractive opportunities are emerging.

    Read more

    Where we see income opportunities as the Fed winds down stimulus

    We share how we employ a flexible approach to tap into income opportunities.

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    Exploring the role of corporate credit in a diversified portfolio

    Income investors like us have stayed the course as market conditions evolve. Where do we see income opportunities?

    Read more

    4Q 2021 bonds: themes and opportunities as rates look set to rise

    Looking at bond themes and opportunities in the final quarter of 2021.

    Read more

    Capturing medtech opportunities as virtual healthcare gains momentum

    Consider the investing potential in healthcare innovation

    Read more

    How smart city living is driving investing possibilities

    The investing potential of the future world – smart cities

    Read more

    Curious about income investing? We share 4 FAQs

    How much do you know about income investing amid an evolving market environment?

    Read more

    Harnessing smart bots as we #returntotheoffice

    Robotics application and machine learning are making their way into the office, presenting long-term growth opportunities.

    Read more

    Bonds 101: ‘ABS’ and ‘MBS’ as a diversifier in a portfolio

    Going beyond the traditional fixed income sectors to tap into the potential of securitisation.

    Read more

    Everyday life disrupted: opportunities in a smart home hub

    Smart home technology is unlocking a culture of convenience and driving long-term growth opportunities.

    Read more

    IoT in a new decade: where and what’s next

    The Internet of Things (IoT) is creating a new digital landscape that impacts almost everything from the way how vehicles run to how factories operate. We seek out the opportunities.

    Read more

    Optimising flexible fixed income as inflation bites

    Going across the full spectrum of fixed income to navigate an inflationary environment.

    Read more

    China consumption: from basics to choice, comfort & convenience

    We share our views on how tech-savvy consumers in China are pushing consumption to new heights.

    Read more

    3Q 2021 bonds: themes and opportunities in an inflationary world

    Looking at 3Q 2021, we seek out the fixed income opportunities as inflation sets in.

    Read more

    Securitisation 101: What are ABS and MBS?

    Fixed income isn’t just government or corporate bonds, it also includes non-traditional debt securities.

    Read more

    Securitisation: Then and now

    The securitisation market has regained much ground in the past decade.

    Read more

    The secret to effective diversification

    Diversification sounds easy, but how to do it effectively?

    Read more

    Returns, income or yields are not guaranteed. Value of investments or income accruing from them may rise or fall.
    Diversification does not guarantee investment return and does not eliminate the risk of loss.
    This information is generic, not tailored to any specific individual circumstances and should not be construed as investment advice. Risk management does not imply elimination of risks. Investments involve risks and are not similar or comparable to deposits, not all investments are suitable for all investors. Please seek financial advice and make independent evaluation before investing.

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    For Fund or Institutional enquiries, please call or email us. You can also contact your financial advisor or your J.P.Morgan Representative.

    (65) 6882 1328

    singapore.investor.services@jpmorgan.com

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