JPMorgan Income Fund
About this Fund
|FUND MANAGER||JPMorgan Asset Management (Australia)|
|ASSET CLASS||FIXED INTEREST|
|INVESTMENT STYLE||The Fund invests opportunistically in an unconstrained portfolio of debt securities and currencies, using financial derivative instruments where appropriate.|
|INVESTMENT PROFILE||The Fund seeks to achieve a return in excess of the Benchmark.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||Bloomberg US Aggregate Bond Index (Total Return Gross) Hedged to AUD|
|FUND SIZE||Bloomberg US Aggregate Bond Index (Total Return Gross) Hedged to AUD|
|NO. OF HOLDINGS|
Benefits of investing in the JPMorgan Income Fund
The Fund may be suitable for investors who understand the risks of the Fund, including the risk of capital loss, and:
About the Fund
The JPMorgan Income Fund is a flexible portfolio that seeks to uncover the best ideas across all geographies and sectors of fixed income - regardless of benchmark allocations.
How we invest your money
The Fund will be substantially invested in the Underlying Sub-Fund. However, a small proportion of the Fund's investments will be in cash.
In relation to the Underlying Sub-Fund, at least 67% of the Underlying Sub-Fund's assets will be invested, either directly or through derivatives, in debt securities, including, but not limited to, debt securities issued by governments and their agencies, state and provincial governmental entities and supranational organisations, corporate debt securities, asset-backed securities and mortgage backed securities (including covered bonds) and currencies. Issuers may be located anywhere in the world, including emerging markets.
The Underlying Sub-Fund may:
The Underlying Sub-Fund may hold up to 10% of its total assets in equity securities, typically as a result of events relating to the Underlying Sub-Fund's debt holdings such as conversions or restructures. The Underlying Sub-Fund may also use equity derivatives for managing equity exposure and the Underlying Sub-Fund's correlation to equity markets.
The Underlying Sub-Fund will invest in derivatives to achieve its investment objective, and for hedging and efficient portfolio management. These instruments may include, but are not limited to, futures, options, contracts for difference, forward contracts on financial instruments and options on such contracts, credit linked instruments, to be announced mortgage-backed securities ("TBAs) and swap and other fixed income, currency and credit derivatives.
The Underlying Sub-Fund may invest in assets denominated in any currency. However, majority of the currency exposure in the Underlying Sub-Fund is hedged into USD.
The expected proportion of the assets under management of the Underlying Sub-Fund that could be subject to securities lending fluctuates between 0% to 20%, the latter being the maximum.
All of the above investments of the Underlying Sub-Fund will be made in accordance with the applicable limits and regulations under the governing law of the Underlying Sub-Fund (currently Luxembourg law) and the offering and constitutive documents of the Underlying Sub-Fund.
Contingent convertible bonds are a type of investment instrument that, upon the occurrence of a predetermined event (commonly known as a "trigger event), can be converted into shares of the issuing company, potentially at a discounted price, or the principal amount invested may be lost on a permanent or temporary basis. Coupon payments on Contingent Convertible Securities are discretionary and may also be cancelled by the issuer. Trigger events can vary but these could include the capital ratio of the issuing company falling below a certain level or the share price of the issuer falling to a particular level for a certain period of time.