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.



     

Nick Gartside, International Chief Investment Officer for Global Fixed Income, Currency and Commodities, looks at the benefits of unconstrained bond investing and explains how a dynamic, “best ideas” approach can provide enhanced total returns for investors with a long-term horizon.


     


Fund highlights




Expertise

  • Deeply resourced team with 23-year track record of investing with talented alternative fund managers.

  • Portfolio

  • Managed accounts structure provides access to expanded opportunities in alternative strategies and niche managers, with an efficient fee structure.
  • Unique access to strategies and managers not available in a single strategy UCITS funds.

  • Success

  • A foundational allocation to liquid alternatives for investors seeking to improve diversification and risk-adjusted returns.
  • Has delivered positive returns in over 90% of rolling one-year periods since inception.


     

Expanded manager universe




The fund’s multi-manager UCITS structure provides liquid exposure to a diversified portfolio of alternative strategies. The managed accounts structure allows for an expanded universe of managers, a greater oversight and control of underlying assets, a low correlation to both equity and fixed income markets, and attractive fees.


Our manager selection, based on bottom-up analysis and top-down market research, provides unique access to alternative managers across five core alternative fund strategies: long/short equity; merger arbitrage/ event driven; relative value; credit; and macro/opportunistic.


Most of the strategies that the fund invests in are not accessible in single strategy UCITS funds, while none of the fund’s sub-advisers manage any of the largest 65 (by fund AUM size as of 31.12.2018) UCITS alternative funds.


Four-minute read ►
     

Historical portfolio positioning (duration, years)

Source: J.P. Morgan Asset Management Hedge Fund Services.
The above allocations are based on current market conditions and are subject to change.
Allocations are estimated and rounded as of 31.12.2018. The operating range for Cash is
0-8%. Strategy allocation ranges are as follows: Relative Value: 0-50%;
Opportunistic/Macro: 0-50%; Long/Short Equity: 0-55%; Merger Arbitrage/Event Driven:
0-40%; Credit: 0-40%; and Cash: 0-10%. Allocations may not sum to 100 due to rounding.
Shown for illustrative purposes only.




1alternative funds provide the ability to invest in a wide range of strategies and securities across global financial markets. By utilising derivatives to manage risks, capturing arbitrage opportunities during market dislocations, and going “short” to bet against prices, alternative funds have the potential to provide uncorrelated return streams and improved risk-adjusted returns.

2A managed accounts fund works by setting up a number of separately managed accounts within a UCITS-compliant structure, and then hiring different alternative managers to act as sub-advisers to each mandate.




CONSISTENT DIVERSIFICATION AND RISK MANAGEMENT




The fund is downside focused to preserve capital, has a low sensitivity to equity and fixed income to diversify market risk, and maintains liquidity across market cycles to return money when it’s needed.


AVERAGE RETURN OF FUND IN NEGATIVE DAYS FOR MARKETS SINCE INCEPTION (%)

Source: J.P. Morgan Asset Management, Morningstar, Bloomberg; from 11 January 2017 to 30 September 2018. Performance reflects the C (acc) – USD share class for ”JPM MMAF UCITS” and the Barclays Global Aggregate Bond Index for the “Barclays Global Agg”. One-year rolling returns are calculated with the percent change of the NAV using 252 trading days and may not reflect the exact return experienced by an investor due to discrepancies that include, but are not limited to, trading holidays and leap years. Indices are unmanaged, do not charge fees, and are shown for illustrative purposes only.

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

Top holdings

Government of Portugal2,3%Government of Malaysia1,0%
Government of Italy2,1%Government of Spain1,0%
Government of South Africa1,6%Government of Mexico0,9%
Government of Spain1,5%Government of France0,7%
Government of China1,1%Government of Indonesia0,6%
as of: 30.06.2019

The securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell.

Investment objective

The Sub-Fund aims to provide long-term capital appreciation by investing in multiple eligible asset classes globally, employing a variety of non-traditional or alternative strategies and techniques and using financial derivative instruments where appropriate.

Share class
JPM Multi-Manager Alternatives A (acc) - USD
ISIN
LU1303367103
Benchmark
ICE 1 Month USD LIBOR
Fund manager(s)
Paul A Zummo
Randy P Wachtel
Christopher J Marshall
Fund launch date
11.01.16
Fund size
USD 553,8m
Morningstar rating
Not rated
Maximum Total Expense Ratio
2,60%
Assets Under Management as of 15.08.2019



     

MAIN RISKS




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 below 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 for a full description of each risk.


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

Techniques
Concentration
Derivatives
Hedging
Short positions
Multi-manager sub fund
Securities
Catastrophe bonds
Commodities
Convertible securities
Contingent convertible bonds
Debt securities
- Below investment grade debt
- Investment grade debt
- Government debt

- Unrated debt
- Distressed debt
Emerging markets
Equities
MBSs/ABSs
REITS
UCITS, UCIs and ETFs

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

Currency
Credit
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 37, 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. JPMorgan Asset Management (Switzerland) LLC herewith informs investors that with respect to its distribution activities in and from Switzerland it receives commissions pursuant to Art. 34 para. 2bis of the Swiss Collective Investment Schemes Ordinance dated 22 November 2006. These commissions are paid out of the management fee as defined in the fund documentation. Further information regarding these commissions, including their calculation method, may be obtained upon written request from JPMorgan Asset Management (Switzerland) LLC. 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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