JPMORGAN STRATEGIC INCOME OPPORTUNITIES FUND
Complement your core.
With an absolute-return-oriented approach to fixed income investing, the Strategic Income Opportunities Fund invests flexibly across a diverse set of fixed income strategies, taking advantage of the best opportunities across all market environments.
PERFORMANCE DURING PERIODS OF RATE VOLATILITY
- Maximizes the insights of lead portfolio manager Bill Eigen and his proven team of absolute return investors with niche market expertise.
- The Fund leverages the entire fixed income spectrum to diversify sources of return.
- Complete flexibility to help mitigate rate and credit risk while capitalizing on opportunities.
- The Fund has historically provided strong, uncorrelated returns relative to traditional fixed income when interest rates have been volatile.
Flexibility to maximize manager insights
The Fund focuses on absolute return, meaning it is benchmark agnostic and seeks to produce uncorrelated, low volatility returns across all market environments. It draws on three different strategies to diversify sources of return:
Beta: Aim to maximize risk-adjusted returns through tactical shifts between fixed income sectors.
Alpha: Leverage niche market expertise to uncover market opportunities for uncorrelated, low volatility sources of return.
Hedges: Systematically use cash and short positions to dampen portfolio volatility and preserve capital.
HISTORICAL PORTFOLIO POSITIONING
Fees and Investment Minimums
Total return assumes reinvestment of income.
The Barclays U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. An individual cannot invest directly in an index.
The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the index is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond 3 months from the rebalancing date. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. An individual cannot invest directly in an index.
The performance of the Lipper Alternative Credit Focus Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund.
Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges, where applicable. Performance may reflect the waiver of a portion of the Fund's advisory or administrative fees and/or reimbursement of certain expenses for certain periods since the inception date. If fees had not been waived and/or certain expenses were not reimbursed, performance would have been less favorable.
©2016, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops.
Ordinarily the Fund will invest no more than 75% of its total assets in credit securities.
Securities rated below investment grade are considered "high-yield," "non-investment grade," "below investment-grade," or "junk bonds." They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody's Investors Service. Although these securities tend to provide higher yields than higher rated securities, they tend to carry greater risk.
The Fund has the ability to invest 100% of its total assets in high yield securities.
International investing involves special risks, including economic, political, and currency instability - especially in emerging markets. The Fund's investments in emerging markets could lead to more volatility in the value of the Fund's shares. The small size of securities markets and the low trading volume may lead to a lack of liquidity, which leads to increased volatility. Emerging markets may not provide adequate legal protection for private or foreign investment or private property.
There is no guarantee that the use of long and short positions will succeed in limiting an investment's exposure to domestic stock market movements, capitalization, sector-swings or other risk factors. Investments in a portfolio involved in long and short selling may have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling involves certain risks, including additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale positions.
The Fund may invest in futures contracts and derivatives. Many derivatives create leverage that can cause the Fund to be more volatile than it would be if it had not used derivatives.
The Fund will invest no more than 50% of its total assets in foreign and emerging markets securities.
The Fund has an absolute-return orientation, which means that it is not managed relative to an index.
The top 10 holdings listed reflect only the Fund's long-term investments. Short-term investments are excluded. Holdings are subject to change. The holdings listed should not be considered recommendations to purchase or sell a particular security. Each individual security is calculated as a percentage of the aggregate market value of the securities held in the Fund and does not include the use of derivative positions, where applicable.