10 years of low-volatility, uncorrelated returns




Watch Bill Eigen, Chief Investment Officer of the Absolute Return and Opportunistic Fixed Income Group discuss managing the fund for the last 10 years and his outlook for the next decade.


*The value of investments and any income from them may go down as well as up and investors may not get back the full amount invested.

     



     

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

Lead portfolio manager Bill Eigen maximises the insights of his proven team of absolute return investors with niche market expertise.


Portfolio

Flexible asset allocation combines the best of traditional and alternative fixed income to target uncorrelated, low-volatility returns.


Success

10 years of positive, uncorrelated, low-volatility returns in both rising and falling rate environments—providing valuable stability for clients’ portfolios.


     

10 years of low volatility returns
Calendar year returns, net of fees, %

Source: J.P. Morgan Asset Management. Fund performance is shown based on the NAV of the share class C (perf) (acc) in EUR (hedged) with income (Gross) reinvested including actual ongoing charges excluding any entry and exit fees. A performance fee applicable to share classes with suffix “perf” is also included. Fund inception date is 19 July 2007. Share class inception date is 18 January 2008. **2017 year-to-date return is to 30 June 2017. Past performance is not necessarily a reliable indicator for current and future performance.



Performance during periods of rate volatility (%)

Source: J.P. Morgan Asset Management, Morningstar. (31.03.2018). JPMorgan Investment Funds – Income Opportunity Fund A (perf) (acc) – EUR (hedged). Share class inception date is 19.07.2007.

     

Diversification in rising and falling rate environments




When it comes to the financial markets, a lot can change in 10 years—and the past decade is no exception. But through these testing times, one thing hasn’t changed: the JPMorgan Investment Funds – Income Opportunity Fund has delivered mostly positive, uncorrelated, low-volatility returns since its launch back in July 2007.


Investing opportunistically across traditional and alternative fixed income markets, this innovative and highly flexible fund maximises the insights of an expert team of absolute return investors to navigate both rising and falling rate environments, providing vital stability for our clients’ portfolios across all market conditions.




Top holdings

Svenska Handelsbanken3,2%HSBC1,7%
Barclays Investment Bank3,1%BNP Paribas1,6%
China Construction Bank3,1%Wells Fargo1,6%
Industrial And Commercial Bank Of China2,1%Wells Fargo1,6%
DZ BANK AG1,8%Canadian Imperial Bank of Commerce1,5%
as of: 31.05.2018

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.

Performance (as of: 30.06.2018)

 1 month3 months1 year3 years5 yearsSince inception
Fund0,04%0,11%-0,77%2,33%3,11%37,61%
Benchmark-0,03%-0,09%-0,36%-0,93%-0,82%7,51%
Excess return0,07%0,20%-0,41%3,29%3,96%28,00%

Inception: 19 July 2007

Source: J.P. Morgan Asset Management.
Fund performance is shown based on the NAV of the share class with income (Gross) reinvested including actual ongoing charges excluding entry and exit fees. 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 Income Opportunity A (perf) (acc) - EUR (hedged)
ISIN
LU0289470113
Benchmark
EONIA
Fund manager(s)
William Eigen
Jeffrey Wheeler
Fund launch date
19.07.07
Fund size
USD 3226,9m
Morningstar rating
Not rated
Maximum Total Expense Ratio
1,20%
Assets Under Management as of 13.07.2018

Morningstar Rating™ and Maximum Total Expense Ratio refers to A (acc) - EUR (hedged) share class.

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

Benchmark refers to the Fund benchmark.










Risk Profile

  • 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 below investment grade debt securities which may also be subject to higher volatility and lower liquidity than investment grade debt securities.
  • 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.
  • Convertible bonds are subject to the risks associated with both debt and equity securities, and to risks specific to convertible securities. Their value may change significantly depending on economic and interest rate conditions, the creditworthiness of the issuer, the performance of the underlying equity and general financial market conditions. In addition, issuers of convertible bonds may fail to meet payment obligations and their credit ratings may be downgraded. Convertible bonds may also be subject to lower liquidity than the underlying equities.
  • Catastrophe bonds, in addition, may suffer the loss of part or all of the value of the bond in the event that physical or weather-related phenomena, as specified in the terms of the bond, occur.
  • 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 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 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., 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. In Switzerland, JPMorgan Asset Management (Switzerland) LLC, Dreikönigstrasse 21, 8002 Zurich, has been authorized by the Swiss Financial Market Supervisory Authority (FINMA) 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.
Issued in Europe (excluding UK) 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. Issued in the UK by JPMorgan Asset Management Marketing Limited which is authorized and regulated by the Financial Conduct Authority. Registered in England No. 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP, United Kingdom.


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