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

Experienced management team incorporates insights from over 200 sector specialists across 15 locations, 8 countries and 4 continents around the globe.


Portfolio

An unconstrained best ideas fund with the ability to shift allocations and interest rate sensitivity dynamically as market conditions change.


Success

Has produced positive returns since launch in June 2010, including in periods of rising rates.


     

Global Strategic Bond Fund in periods of rising rates

Source: J.P. Morgan Asset Management, Bank of America Merrill Lynch, Bloomberg; as of 31.03.2018. Inception date: 03.06.2010. Fund performance is shown based on the NAV of the share class A in EUR with income (net) reinvested including actual ongoing charges excluding any entry and exit fees. Past performance is not an indication of future performance. Performance shown in the chart is cumulative. Fund and benchmark rebased to 100 as at fund inception.

Past performance is not a reliable indicator of current and future results.

     

           

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 and seek to preserve capital 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.


     


Top holdings

US Treasury2,6%FHLM1,1%
Government of Japan2,4%FHLM0,9%
FHLM1,4%Government of Japan0,8%
FHLM1,2%FNMA0,8%
FHLM1,1%BX Trust0,8%
as of: 31.10.2018

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

To achieve a return in excess of the benchmark by exploiting investment opportunities in, amongst others, the debt and currency markets, using financial derivative instruments where appropriate.

Share class
JPM Global Strategic Bond A (perf) (acc) - EUR (hedged)
ISIN
LU0514679652
Benchmark
EONIA
Fund manager(s)
Nick Gartside
Iain Stealey
Bob Michele
Fund launch date
03.06.10
Fund size
USD 1437,6m
Morningstar rating
2
Maximum Total Expense Ratio
1,20%
Morningstar Rating™ as of 30.11.2018. © Morningstar. All Rights Reserved.
Assets Under Management as of 14.12.2018






Risk of investment

  • The value of your investment may fall as well as rise and you may get back less than you originally invested.
  • 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.
  • 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.
  • The fund may be concentrated in a limited number of countries, sectors or issuers and as a result, may be more volatile than more broadly diversified funds.
  • Convertible bonds are subject to the credit, interest rate and market risks stated above associated with both debt and equity securities, and to risks specific to convertible securities. Convertible bonds may also be subject to lower liquidity than the underlying equity securities.
  • 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.
  • 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's use of equity derivatives to manage the portfolio's correlation to equity markets may not always achieve its objective and could adversely affect the return of your investment.
  • 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.
  • 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.
  • 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 promotional document and as such the views contained herein are not to be taken as an advice or 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 product(s) or underlying overseas investments. Both past performance and yield may not be a reliable guide to current and future performance. 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 product(s), 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. You should note that if you contact J.P. Morgan Asset Management by telephone those lines may be recorded and monitored for legal, security and training purposes. You should also take note that information and data from communications with you will be collected, stored and processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy Policy which can be accessed through the following website http://www.jpmorgan.com/pages/privacy.
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 product(s). 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 product(s) are available free of charge upon request from JPMorgan Asset Management (Europe) S.à.r.l., European Bank & Business Centre, 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, your financial adviser or your J.P. Morgan Asset Management regional contact.
Issued by JPMorgan Asset Management (Europe) Société à responsabilité limitée, European Bank & Business Centre, 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.


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