PDF JPMorgan Funds - Income Fund

October | 2019

AVAILABLE FOR PUBLIC CIRCULATION

Important information

1. The Fund invests primarily in a portfolio of debt securities.

2. The Fund is therefore exposed to emerging markets, investment grade bonds, credit, sovereign, interest rate risks which may affect the price of bonds, concentration, convertibles, equity, currency, liquidity, derivative and distribution (no assurance on distribution or the frequency of distribution or distribution rate or dividend yield) risks. Pertaining to investments in below investment grade or unrated debt securities, these securities may be subject to higher liquidity risks and credit risks comparing with investment grade bonds, with an increased risk of loss of investment. Investments in asset backed securities and mortgage backed securities may be subject to greater credit, liquidity and interest rate risks compared to other debt securities such as government issued bonds and are often exposed to extension and prepayment risks.

3. The Fund may at its discretion pay dividends out of capital. The Fund may also at its discretion pay dividends out of gross income while charging all or part of the Fund's fees and expenses to the capital of the Fund, resulting in an increase in distributable amount for the payment of dividends and therefore, effectively paying dividends out of realised, unrealised capital gains or capital. Investors should note that, share classes of the Fund which pay dividends may distribute not only investment income, but also realised and unrealised capital gains or capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any dividend payments, irrespective of whether such payment is made up or effectively made up out of income, realised and unrealised capital gains or capital, may result in an immediate reduction of the net asset value per share.

4. Investors may be subject to substantial losses.

5. Investors should not solely rely on this document to make any investment decision.

JPMorgan Funds ? Income Fund

Flexible approach: Investing opportunistically across the bond universe without benchmark constraints, the fund managers can take advantage of the flexibility in managing the portfolio

Multiple debt markets and sectors: The Fund invests in a wide range of fixed income securities, covering not only traditional but also non-traditional fixed income, allowing for a wider source of income

Focusing on income: The fund managers manage the income of the Fund as part of the investment process to help minimise fluctuations in dividend payments of its monthly distribution share classes* (*Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to important information 3)

Morningstar Rating TM

+

Lipper Fund Awards Hong Kong 2019 Best Fund over 3 Years ? Bond Global

Citywire Asia Fund Manager Award 2019 Best Fund Manager 2019, Hong Kong: Global Bonds

+ Source of Morningstar Rating: ? 2019 Morningstar, Inc. All Rights Reserved. Data as of end-September 2019; awarded to A (acc) - USD Class, A (mth) - USD Class and A (mth) - HKD Class.

Issued by Lipper of Refinitiv, 2019 award for the A (acc) - USD Class, reflecting performance as of 31.12.2018. Lipper Fund Awards from Refinitiv, ? 2019 Refinitiv. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

Issued by Citywire Asia, 2019 award, reflecting performance of the past three years to 31.12.2018.

AVAILABLE FOR PUBLIC CIRCULATION PAGE 2 of 4 | MONTHLY FUND STORY | OCTOBER 2019 | JPMORGAN FUNDS ? INCOME FUND

JPMorgan Funds ? Income Fund

A flexible strategy helps expand income potential.

Invests opportunistically across multiple debt markets and sectors, covering traditional and nontraditional fixed income, with a view to making portfolio income a viable outcome.

EXPERTISE

? Draws investment ideas from our global team of 278 fixed income specialists, managing USD 554 billion in AUM.

PORTFOLIO

? Expands investment horizons beyond traditional fixed income sectors to find the most attractive yield opportunities.

SUCCESS

? The Fund offers monthly distribution share classes*. Its USD (mth) class has provided attractive distribution yield over the past two years.

DISTRIBUTION YIELD OF USD (MTH) CLASS* OVER THE PAST TWO YEARS * Aims at monthly distribution. Dividend rate is not guaranteed.

Distributions may be paid from capital. Refer to important information 3

7% 6% 5% 4% 3% 2% 1% 0%

Source: J.P. Morgan Asset Management, as of end-June 2019. Includes assets managed on behalf of other J.P. Morgan Asset Management investment teams. Positive distribution yield does not imply positive return. Annualised yield = [(1+distribution per unit/ex-dividend NAV)^12]-1. The annualised dividend yield is calculated

based on the monthly dividend distribution with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

FLEXIBLE APPROACH WITHOUT BENCHMARK CONSTRAINTS

The Fund invests opportunistically across the bond universe, focusing on markets and sectors that we believe have high potential to produce risk-adjusted return.

With an unconstrained approach, the fund managers take a dynamic approach to navigate changing market conditions.

SECTOR POSITIONING OVER THE PAST TWO YEARS

IG Corporates HY Corporates ABS Agency MBS Non-agency MBS CMBS EM Sovereigns & Quasi Sovereigns EM Corporates Munis Treasuries Net Liquidity

120 110 100 90 80 70 60 50 40 30 20 10

0

10.2017 11.2017 12.2017 01.2018 02.2018 03.2018 04.2018 05.2018 06.2018 07.2018 08.2018 09.2018 10.2018 11.2018 12.2018 01.2019 02.2019 03.2019 04.2019 05.2019 06.2019 07.2019 08.2019 09.2019

Allocation (market value %) 10.2017 11.2017 12.2017 01.2018 02.2018 03.2018 04.2018 05.2018 06.2018 07.2018 08.2018 09.2018 10.2018 11.2018 12.2018 01.2019 02.2019 03.2019 04.2019 05.2019 06.2019 07.2019 08.2019 09.2019

DURATION POSITIONING OVER THE PAST TWO YEARS

Government IG Credit

ABS US HY

CMBS European HY

Agency CMO

Non-agency CMO

Munis

EM Debt

Total

Duration (years)

6 5 4 3 2 1 0 -1 -2

DYNAMIC DURATION MANAGEMENT

In addition to multi-layer risk management throughout the investment process, the fund managers also actively adjust the portfolio's positioning to manage duration in a rising rates environment.

10.2017 11.2017 12.2017 01.2018 02.2018 03.2018 04.2018 05.2018 06.2018 07.2018 08.2018 09.2018 10.2018 11.2018 12.2018 01.2019 02.2019 03.2019 04.2019 05.2019 06.2019 07.2019 08.2019 09.2019

Duration is interest rate weighted. ABS: Asset-Backed Securities. CMBS: Commercial Mortgage-Backed Securities. CMO: Collateralised Mortgage Obligation. EM: Emerging Market. HY: High Yield. IG: Investment Grade. MBS: Mortgage-Backed Securities. Munis: Municipals.

AVAILABLE FOR PUBLIC CIRCULATION PAGE 3 of 4 | MONTHLY FUND STORY | OCTOBER 2019 | JPMORGAN FUNDS ? INCOME FUND

J.P. MORGAN ASSET MANAGEMENT'S GLOBAL FIXED INCOME, CURRENCY AND COMMODITIES (GFICC)

Andrew Norelli

Portfolio manager

17 years of industry experience, 6 years at J.P. Morgan

Andrew Headley

Portfolio manager

25 years of industry experience, 13 years at J.P. Morgan

INVESTMENT OBJECTIVE

To provide income by investing primarily in a portfolio of debt securities.

? 278 fixed income investment professionals ? USD 554 billion of AUM

Includes portfolio managers, research analysts, traders and investment specialists with VP title and above. Includes assets managed on behalf of other J.P. Morgan Asset Management investment teams. Source: J.P. Morgan Asset Management, as of end-June 2019.

PERFORMANCE (%)

JPM Income Fund A (acc) - USD

YTD

1 year

3 years

5 years

10.2

9.7

16.4

25.1

JPM Income Fund A (acc) - USD

2014# 0.5

2015 -1.4

2016 7.9

2017 6.1

# Since launch to end of year. Source: J.P. Morgan Asset Management (USD (acc) class return from launch on 02.06.2014 to 30.09.2019, NAV to NAV in USD with income reinvested).

Since launch 25.3

2018 0.4

HISTORICAL DISTRIBUTIONS

Ex-dividend date (d/m/y) 01.08.2019 03.09.2019

Distribution per unit / Annualised yield *

USD (mth) Class

HKD (mth) Class

USD 0.0440 5.73%

HKD 0.0450 5.80%

USD 0.0440 5.69%

HKD 0.0450 5.74%

* Aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to important information 3 Positive distribution yield does not imply positive return. Annualised yield = [(1+distribution per unit/ex-dividend NAV)^12]-1. The annualised dividend yield is calculated

based on the monthly dividend distribution with dividend reinvested, and may be higher or lower than the actual annual dividend yield.

DISTRIBUTION SCHEDULE

Record date 30.09.2019 31.10.2019

Ex-dividend date 01.10.2019 01.11.2019

Dividend rate is not guaranteed. Positive distribution yield does not imply positive return.

Reinvestment / Payment date 16.10.2019 15.11.2019

SECTOR BREAKDOWN

22.8% HY Corporates 17.2% ABS 12.8% Agency MBS 12.5% CMBS 8.0% Non-agency MBS 3.9% IG Corporates 3.4% EM Sovereigns & Quasi Sovereigns 0.9% Others 1.3% Net Liquidity

QUICK FUND FACTS

Fund Managers: Fund Size: Launch Date:

Initial Charge: Redemption Charge: Management Fee: Distribution Frequency: Dealing & Valuation:

Andrew Norelli / Andrew Headley USD 1,127.0m

USD (acc) Class: 02.06.2014 USD (mth) Class: 19.12.2014 HKD (mth) Class: 19.12.2014

3.0% of NAV Currently 0%

1.0% p.a. (mth) Class: Expected monthly

Daily

AVAILABLE FOR PUBLIC CIRCULATION PAGE 4 of 4 | MONTHLY FUND STORY | OCTOBER 2019 | JPMORGAN FUNDS ? INCOME FUND

LET'S SOLVE IT.

NEXT STEPS

For further information on the JPMorgan Funds ? Income Fund, please contact your bank or financial adviser. am.hk Unless stated otherwise, all fund information is sourced from J.P. Morgan Asset Management, as of end-September 2019. The information contained in this document does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment product or service. Informational sources are considered reliable but you should conduct your own verification of information contained herein. The "(mth)" classes aim at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from capital. Refer to important information 3 Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document(s) for details, including the risk factors. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited. IF1910E_IST

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download