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 a proven team of specialist investors with niche market expertise and long experience managing fixed income portfolios that seek to make a positive return in various market conditions.


Portfolio

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


Success

Has produced compelling results in periods of market volatility and has demonstrated a low correlation to traditional fixed income.


     

SHARPE RATIO


Source: Barclays Capital, Bloomberg, J.P. Morgan Asset Management; data as of 31.12.2018. IOF = JPM Income Opportunity A (perf) (acc) – EUR (hedged); Traditional bonds = Barclays Global Aggregate Index hedged to EUR. Share class inception date is 19.07.2007.

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



HISTORICAL PORTFOLIO POSITIONING (DURATION,YEARS)

Source: J.P. Morgan Asset Management; data as of 31.12.2018. Diagram shows capital allocation of the fund and does not necessarily represent risk exposure. For example, short exposures achieved with derivative positions may be represented by the collateral associated with the position. 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.


Positioning for income and opportunity

With the Federal Reserve signalling a pause in its rate hiking cycle and risk assets continuing to retrace the ground lost at the end of 2018, Bill Eigen—Portfolio Manager for the JPMorgan Investment Funds - Income Opportunity Fund—tells us how he’s adapting his investment strategy to deal with a finely balanced macro environment.


Four-minute read ►

     

FLEXIBILITY TO MAXIMISE MANAGER INSIGHTS




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


The fund’s benchmark-agnostic approach seeks to produce uncorrelated, low-volatility returns regardless of the market environment. The portfolio accesses diverse sources of return from traditional, alternative and private fixed income markets by investing opportunistically across three distinct strategies:


  • Tactical sector rotation (directional): Aims to maximise risk-adjusted returns through tactical shifts between fixed income sectors.
  • Alternative (non-directional): Leverages niche market expertise in alternatives to uncover uncorrelated, low-volatility return opportunities.
  • Hedging: Systematically uses cash and short positions to dampen portfolio volatility and preserve capital.


Top holdings

Coca-Cola0,7%FN BM3788 3.5% 01 Mar 20480,5%
FG G67706 3.5% 01 Dec 20470,6%Total SA0,5%
Pfizer0,6%Prologis0,5%
Merck & Co0,6%Novartis0,4%
Roche0,6%General Electric0,4%
as of: 31.03.2019

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.

Performance (as of: 31.03.2019)

 1 month3 months1 year3 years5 yearsSince inception
Fund1,08%6,10%1,46%11,21%14,70%113,32%
Benchmark1,19%7,77%3,34%20,27%24,20%154,75%
Excess return-0,11%-1,55%-1,82%-7,53%-7,64%-16,26%

Inception: 11 December 2008

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 2932,7m
Morningstar rating
Not rated
Maximum Total Expense Ratio
1,20%
Assets Under Management as of 18.04.2019

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 Sub-Fund is subject to Investment risks and Other associated risks from the techniques and securities it uses to seek to achieve its objective.

The table on the right explains how these risks relate to each other and the Outcomes to the Shareholder that could affect an investment in the Sub-Fund.

Investors should also read Risk Descriptions in the Prospectus for a full description of each risk.

Investment risks Risks from the Sub-Fund's techniques and securities

Techniques
Derivatives
Hedging
Securities
Catastrophe bonds
Contingent convertible bonds
Debt securities
- Government debt
– Investment grade debt
– Below investment grade debt

– Unrated debt
– Distressed debt
Emerging markets
Equities
MBS/ABS
REITs
UCITS, UCIs & ETFs
 

Other associated risks Further risks the Sub-Fund is exposed to from its use of the techniques and securities above

Credit
Currency
Interest rate
Liquidity
Market
 

Outcomes to the Shareholder Potential impact of the risks above

Loss Shareholders could lose some or all of their money.
Volatility Shares of the Sub-Fund will fluctuate in value.
Failure to meet the Sub-Fund's objective.
 
 

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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