SINGAPORE: J.P. Morgan Asset Management launches two new income funds in Singapore
Aug 29, 2012
- Singapore debut for multi-asset funds investing in high-dividend stocks, bonds, REITs
- New funds complement existing offerings to meet investor demand for income products
Singapore, 29 August 2012: J.P. Morgan Asset Management (JPMAM) has launched two new income funds in Singapore to meet growing investor demand for investment products offering attractive income streams from a wide spectrum of asset classes.
The two J.P. Morgan funds - Asia Pacific Income Fund and Global Income Fund - bring the suite of income funds JPMAM offers to retail investors in Singapore to seven and their launch comes at a time when investors everywhere are seeking to maximise income opportunities in a low-yield environment. The two funds were registered in Singapore recently.
Together with US Aggregate Bond Fund, Global High Yield Bond Fund, Emerging Markets Debt Fund, Global Corporate Bond Fund and Emerging Markets Local Currency Debt Fund, JPMAM now has a range of income funds investing in multiple asset classes – from US bonds and emerging market debt to Asian high yield equities and Real Estate Investment Trusts (REITs).
The Asia Pacific Income Fund, which invests primarily in income generating securities in the region excluding Japan, seeks to maximise income return and to capture long-term capital growth opportunities. It invests in a wide range of asset classes including high-dividend stocks, REITs, high yield bonds and investment grade bonds. The fund employs a flexible, active asset allocation strategy and security selection. The Asia Pacific Income Fund, currently yielding 6.1%, offers regular payouts.
Mr Jeffrey Roskell, Managing Director and Fund Manager of Asia Pacific Income Fund, said: "The Asia Pacific Income Fund is actively managed to maximise potential income return from a range of securities in the Asia Pacific region, which is still the fastest growing today. In particular, we see a wide range of stocks in Asia with dividends yields that are significantly higher than US treasuries and more than Asian investment grade bonds.
"High dividend equities have performed remarkably well over the long term relative to the broader index in Asia. An important driver for this has been the lower volatility nature of such stocks which means they outperform during periods of market weakness."
For Singapore investors seeking global diversification, the Global Income Fund aims to provide regular income by investing in a range of income-generating asset classes globally, including high dividend stocks, high yield bonds, REITs and emerging market debt. The Global Income Fund is managed using a flexible investment strategy with asset allocation set by JPMAM’s Global Multi-Asset Group (GMAG) and managed by specialist investment teams. The Global Income Fund, currently yielding 4.1%, also offers regular payouts.
Mr Jonathan Lowe, Managing Director and Fund Manager, J.P. Morgan Asset Management said the Global Income Fund allows investors to access different income opportunities as well as diversify risks through a single integrated fund.
"The Global Income Fund adopts an active policy with respect to asset allocation and security selection to give investors access to an attractive level of income across varying market conditions. Moreover, not only do investors benefit from an attractive potential income return, they should also benefit from the diversified nature of the portfolio, as the varying risk and reward characteristics of different asset classes help mitigate the risk inherent from any one single asset class," said Mr Lowe.
The yields shown above are annualised with dividends reinvested as at 31 July 2012. Differences could be due to rounding. Positive distribution yield does not imply positive return. All or part of the Fund's fees and expenses may be charged to the capital of the Fund which will result in income being increased for distribution, however, the capital that the Fund has available for investment in the future and capital growth may be reduced.
Funds are approved as recognised schemes under the Securities and Futures Act, Chapter 289 of Singapore. This information does not constitute investment advice. Investment involves risk. Investors should make their own investigation or evaluation or seek independent advice prior to making any investment. Past performance is not indicative of future performance and investors may not get back the full or any part of the amount invested. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. Dividend distributions are not guaranteed and are made at the manager’s discretion. The fund’s net asset value may likely have high volatility due to its investment policies or portfolio management techniques. Funds which are invested in emerging markets, smaller companies and financial derivative instruments may also involve higher risks and are usually more sensitive to price movements. Currency hedging process may not give a precise hedge and there is no guarantee that the hedging will be successful. Investors in a currency hedged fund or share class may have exposure to currencies other than the currency of their fund or share class. Please refer to the Singapore offering documents, including the risk factors set out therein, and the relevant product highlights sheet (both can be found at www.jpmorganam.com.sg) before investing. Issued by JPMorgan Asset Management (Singapore) Limited (Co. Reg. No. 197601586K). All rights reserved.
For further information please contact:
Tze Hui, Cheam
JPMorgan Asset Management (Singapore) Limited
Telephone: (65) 6882 1882
Catherine Ong Associates
Telephone: (65) 6327 6084
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About J.P. Morgan Asset Management
J.P. Morgan Asset Management ("JPMAM") is the brand name of J.P. Morgan Chase & Co’s asset management companies.
J.P. Morgan Asset Management is a global asset management leader providing world-class investment solutions to clients. With over US$1.3 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at 30 June 2012) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.