Fund highlights




Expertise

Expertise Highly experienced portfolio managers Bob Michele, Nick Gartside and Iain Stealey are backed by the in-house research of a globally integrated team of over 200 investment professionals.


Portfolio

Provides flexible fixed income exposure across more than 15 sectors and 50 countries, dynamically adjusting its allocation and sensitivity to interest rates as market conditions evolve.


Success

Success Has a track record of attractive returns while managing risk, and can act as a diversifier to traditional bond funds.


HISTORICAL PORTFOLIO POSITIONING (DURATION, YEARS)

Source: J.P. Morgan Asset Management. Dec 16.

     

     

Fund highlights




Expertise

Expertise Highly experienced portfolio managers Bob Michele, Nick Gartside and Iain Stealey are backed by the in-house research of a globally integrated team of over 200 investment professionals.


Portfolio

Provides flexible fixed income exposure across more than 15 sectors and 50 countries, dynamically adjusting its allocation and sensitivity to interest rates as market conditions evolve.


Success

Success Has a track record of attractive returns while managing risk, and can act as a diversifier to traditional bond funds.


     

HISTORICAL PORTFOLIO POSITIONING (DURATION, YEARS)

Source: J.P. Morgan Asset Management. Dec 16.


     

Look beyond traditional fixed income




As growth and inflation expectations have risen, sharp increases in government bond yields have led to losses for some investors, and worries are building that further losses could be around the corner.


Investors may therefore benefit from looking beyond traditional fixed income sectors, choosing a diversified, multi-sector approach that can find opportunities even when interest rates are rising. For example, flexible bond funds can shift their exposure to corporate high yield bonds and emerging market debt as rates increase, taking advantage of the yield cushion they provide and helping investors maintain a positive total return.


     

     

Fund highlights




Expertise

Benefits from the insight of over 80 investment professionals1, with a track record of more than 40 years’ experience in multi-asset investing.


Portfolio

Invests broadly across assets and regions in search of income, while ensuring risk is controlled.


Success

Targets a consistent and attractive yield with a volatility profile similar to that of a traditional 30/70 equity/bond balanced portfolio.


     

Risk/return characteristics of multi-asset solutions income portfolios

Chart source: Bloomberg. As at 31 March 2018. Fund and indices are MSCI World Index (Net) hedged EUR, Barclays Global Aggregate Credit Index hedged EUR, Euro Cash Indices LIBOR Total Return 3 Months. 60/40 Portfolio is: 60% MSCI World Index (Net) hedged EUR, 40% Barclays Global Aggregate Credit Index hedged EUR. 30/70 Portfolio is: 30% MSCI World Index (Net) hedged EUR, 70% Barclays Global Aggregate Credit Index hedged EUR. *JPMorgan Investment Funds- Global Income Conservative Fund Benchmark: 55% Barclays Global Aggregate Hedged to EUR, 30% Barclays US Corporate HY 2% Issuer Cap Hedged to EUR, 15% MSCI World Index (Net) hedged EUR.

1The number of ‘investment professionals’ includes portfolio managers, research analysts, traders and client portfolio managers with VP title and above. As of 31 March 2018. Past performance is not necessarily a reliable indicator for current and future performance.



     

Boosting income requires a broader approach




In today’s low interest rate world, the income generated from traditional savings products - such as bank deposits and government bonds - is struggling to keep pace with the rising cost of living and may no longer meet the needs of many investors.


Many income seekers are broadening their horizons to capitalise on the more attractive income opportunities that exist across global markets, such as high-yield bonds, emerging market debt and dividend-paying stocks. A multi-asset approach has the freedom to invest across all markets and sectors, capitalising on diverse sources of income to provide an attractive and sustainable yield.


       

Top holdings

FN BM3788 3.5% 01 Mar 20481,1%US Treasury 3.0% 15 Feb 20480,7%
FN BM3778 3.5% 01 Dec 20470,9%FG G67703 3.5% 01 Apr 20470,6%
FG Q52307 3.5% 01 Nov 20470,9%FN AS9585 4.0% 01 May 20470,6%
FG G67706 3.5% 01 Dec 20470,8%FG G67700 3.5% 01 Aug 20460,5%
FNA 2019-M4 A2 3.61% 25 Feb 20310,7%FG G67714 4.0% 01 Jul 20480,5%
as of: 30.04.2019

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.
Past performance is not an indication of current and future performance.

Investment objective

The Sub-Fund aims to provide regular income by investing primarily in a conservatively constructed portfolio of income generating securities, globally, and through the use of financial derivative instruments.

Share class
JPM Global Income Conservative C (acc) - EUR
ISIN
LU1458463822
Benchmark
55% Bloomberg Barclays Global Aggregate Index (Total Return Gross) Hedged to EUR / 30% Bloomberg Barclays US Corporate High Yield 2% Issuer Capped Index (Total Return Gross) Hedged to EUR / 15% MSCI World Index (Total Return Net) Hedged to EUR
Fund manager(s)
Michael Schoenhaut
Eric Bernbaum
Matthew Pallai
Fund launch date
12.10.16
Fund size
EUR 1379,8m
Morningstar rating
Not rated
Maximum Total Expense Ratio
0,75%
Assets Under Management as of 23.05.2019

AUM (Assets Under Management) refers to the Fund size.
Benchmark refers to the Fund benchmark.








Risk of investment

  • Returns to investors will vary from year to year, depending on dividend income and capital returns generated by the underlying financial assets. Capital returns may be negative in some years and dividends are not guaranteed.
  • The value of equity securities may go down as well as up in response to the performance of individual companies and general market conditions.
  • The Fund may invest in China A-Shares through the China-Hong Kong Stock Connect Programmes which are subject to regulatory change, quota limitations and also operational constraints which may result in increased counterparty risk.
  • The value of debt securities may change significantly depending on economic and interest rate conditions as well as the credit worthiness of the issuer. Issuers of debt securities may fail to meet payment obligations or the credit rating of debt securities may be downgraded. These risks are typically increased for emerging market and below investment grade debt securities.
  • In addition, emerging markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging market currencies may be subject to volatile price movements. Emerging market and below investment grade debt securities may also be subject to higher volatility and lower liquidity than non emerging market and investment grade debt securities respectively. The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency.
  • Contingent Convertible Securities are likely to be adversely impacted should specific trigger events occur (as specified in the contract terms of the issuing company). This may be as a result of the security converting to equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • Investments in REITs may be subject to increased liquidity risk and price volatility due to changes in economic conditions and interest rates.
  • Under exceptional market conditions the Fund may be unable to meet the volatility level stated in the investment objective and the realised volatility may be greater than intended.
  • The value of financial derivative instruments can be volatile. This is because a small movement in the value of the underlying asset can cause a large movement in the value of the financial derivative instrument and therefore, investment in such instruments may result in losses in excess of the amount invested by the Fund.
  • Asset-backed and mortgage-backed securities may be highly illiquid, subject to adverse changes to interest rates and to the risk that the payment obligations relating to the underlying asset are not met.
  • Movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful.



Disclaimer

This is a marketing communication and as such the views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. As the product may not be authorized or its offering may be restricted in your jurisdiction, it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Shares or other interests may not be offered to, or purchased, directly or indirectly by US persons. All transactions should be based on the latest available Prospectus, the Key Investor Information Document (KIID) and any applicable local offering document. These documents together with the annual report, semi-annual report and the articles of incorporation for the Luxembourg domiciled products are available free of charge upon request from JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, your financial adviser or your J.P. Morgan Asset Management regional contact. In Switzerland, JPMorgan Asset Management (Switzerland) LLC, Dreikönigstrasse 21, 8002 Zurich, acts as Swiss representative of the funds and J.P. Morgan (Suisse) SA, 8 Rue de la Confédération, 1204 Geneva, as paying agent of the funds. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

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