JPMORGAN UNCONSTRAINED DEBT FUND
Broader bond horizons.
With a focus on mitigating downside risk, the Unconstrained Debt Fund targets attractive risk-adjusted returns across different market environments by investing flexibly across global fixed income markets.
Unconstrained Debt Fund in periods of rising rates
Source: Morningstar, Bloomberg; as of 3/31/16. Fund performance for Select Shares with income reinvested. Fund rebased to 100 at Fund inception (12/1/10). Shown for illustrative purposes only. Past performance is no guarantee of future results.
- Focuses on managing downside risk to produce attractive risk-adjusted returns.
- Unconstrained approach provides access to “best ideas” across the global fixed income spectrum.
- Dynamically shifts allocations and interest rate sensitivity as market conditions change.
- Has produced consistent positive returns since launch in December 2010.
Flexibility and disciplined risk management
Designed to explore the full scope of fixed income return and diversification opportunities, this high-conviction unconstrained bond fund exploits our broad global fixed income resources to invest flexibly across 15 fixed income sectors and over 50 countries. Because this fund isn’t constrained by a benchmark, the Fund can significantly shift positions as market conditions and opportunities evolve.
Historical portfolio weightings by sector
Chart source: J.P. Morgan Asset Management; as of 3/31/16. The Fund is an actively managed portfolio; holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.
Total return assumes reinvestment of income.
The quoted performance of the Fund includes performance of a predecessor fund/share class prior to the Fund's commencement of operations. Please refer to the current prospectus for further information.
The Barclays U.S. Aggregate Index is an unmanaged index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. 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.
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, without limit, in high yield securities.
The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans.
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.
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.
Total return assumes reinvestment of income.