JPMorgan Income Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101580-2023-04-20-02:29.pdf
FUND MANAGER JPMorgan Asset Management (Australia)
ASX Code
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.
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
FEES 0.40% p.a.



Benefits of investing in the JPMorgan Income Fund

  • Invests across the full spectrum of fixed income investment opportunities: The Fund offers investors diversified exposure to the most attractive segments of the bond markets, including the government and corporate debt markets of developed and emerging economies.
  • Global, unconstrained asset allocation approach: Diversification is achieved through the global allocation of assets, and an unconstrained approach allows the Fund to invest in the most compelling return opportunities.
  • Fixed income expertise: The Fund is managed by J.P. Morgan Asset Management's International Fixed Income Group, which has expertise across all areas of fixed income and employs a globally integrated investment approach that draws on the in-house research generated by locally-based sector specialists.

Risk level


Investor suitability

The Fund may be suitable for investors who understand the risks of the Fund, including the risk of capital loss, and:

  • seek investment return through an unconstrained portfolio of debt securities and currencies;
  • are looking to use it as part of an investment portfolio and not as a complete investment plan.



Key Features

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.

Fund Highlights

  • With domestic yields near historic lows, investors are looking to foreign markets for better results
  • Experienced management team incorporates insights from over 250 sector specialists based in 11 locations across the globe
  • Combines macro insights with fundamental research to develop a portfolio of high conviction ideas
  • Active risk analysis, using a variety of measures, is embedded throughout the process


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:

  • invest a significant portion of its assets in mortgage-backed and asset-backed securities.
  • hold up to 10% in convertible securities and up to 10% in contingent convertible bonds (see below).
  • invest in below investment grade and unrated debt securities.
  • use long and short positions (through derivatives) to vary exposure to countries, sectors, currencies and credit ratings which may be concentrated from time to time.
  • hold up to 100% in cash and cash equivalents until suitable investment opportunities are found.
  • invest in onshore debt securities issued within the People's Republic of China through China-Hong Kong Bond Connect.

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.