JPM Multi Income Fund Launched
Aug 22, 2011
The launch of JPM Multi Income Fund, a yield-oriented multi-asset fund was designed to maximise potential income return.
Hong Kong, 22 August 2011: J.P. Morgan Asset Management (JPMAM) today announced the launch of JPM Multi Income Fund, a yield-oriented multi-asset fund designed to maximise potential income return.
JPM Multi Income Fund's benchmark offered an average yield of 5.3%# over the past 12 months. To provide investors with an actively-managed, well-diversified and unconstrained global portfolio, the Fund invests in a wide range of asset classes, primarily high-yield bonds, emerging market debt, higher-yielding developed and emerging market equities, and Real Estate Investment Trusts (REITs).
"JPM Multi Income Fund adopts an unconstrained, active tactical asset allocation strategy and security selection aiming to give investors access to the attractive sources of income across varying market conditions," said Jonathan Lowe, Fund Manager of JPM Multi Income Fund. "Investors may benefit from increased diversification as the risk and reward profiles for different asset classes across different geographical regions will differ. Some even have a negative correlation which can help to mitigate some of the downside risks."
Marco Tang, Head of Intermediary Business at JPMAM, said, "With traditional sources of income such as bank deposit rates at minimal levels, and expected to stay low for an extended period, and with government bond yields also low despite burgeoning public sector debt, the need for investors to improve income sources to help meet expenses, combat inflation and boost portfolio returns has never been higher. A multi-income fund may help to compensate for the current low yields by acting as an alternative source of income that is distributed in a timely and efficient manner."
JPM Multi Income Fund, apart from aiming to provide monthly distributions* to investors (the Fund has no intention to distribute income from capital), also aims to provide moderate medium- to long-term capital growth opportunities as its secondary objective. Its actively-managed global portfolio draws on the analysis, research and insight of JPMAM's investment teams around the world.
For investors who are seeking higher yields, capital appreciation potential, a more diversified and flexible approach to income investing, and to increase their risk tolerance as traditional sources of income fall below current rates of inflation, the Fund may help maximise income opportunities in the current low-yield environment.
During JPM Multi Income Fund's initial offer period from 15 August 2011 to 9 September 2011, investors can enjoy a special initial charge offer at 1%. The minimum subscription amount is USD2,000 (or HKD5,000 through the online J.P. Morgan eTrading platform) or monthly investment of HKD1,000 via eScheduler, JPMAM's monthly fund investment tool.
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# Source: Thomson Reuters Datastream, Barclays Capital and JPM Securities, as at 30/6/11. Customised benchmark: 25% MSCI World Price (Hedged to USD) + 15% MSCI Emerging Markets Net + 40% Barclays Capital US Corporate High Yield 2% Issuer Capped Total + 20% J.P. Morgan Emerging Markets Bond Index Global Total. The yield of benchmark is calculated by the weighted average dividend yield of equity indices and yield-to-maturity of bond indices, shown for illustrative purposes only and does not represent actual fund performance. Past performance is not indicative of future performance.
* There will be no dividend distribution made during the first three months following the Initial Offer Period. Positive distribution yield does not imply positive return. Dividend is not guaranteed.
For further information please contact:
Daniel Chui, Head of Investor Communications
Telephone: (852) 2800 2874
Harriet Ngan, Internal & Media Communications
Telephone: (852) 2800 2776
Issued by JPMorgan Funds (Asia) Limited
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Notes to Editors
J.P. Morgan Asset Management ("JPMAM") is the brand name of J.P. Morgan Chase & Co's asset management companies, including JPMorgan Funds (Asia) Limited.
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 2011) 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.
Commitment to Hong Kong
JPMAM's investment management business in Asia has remained headquartered in Hong Kong for more than three decades and today has over 500 employees based in this location. JPMAM and its investment arm - JF Asset Management - are one of the largest local investment managers in Hong Kong with over US$91 billion (30 June 2011) of funds managed across the Asia Pacific region.
As part of a major global investment group, we are committed to providing specialist teams with the resources needed to deliver successful products and performance to our clients. The Hong Kong-based Pacific Regional Group, together with the local presence of the Global Portfolios Group, Global Multi Asset Group and Global Fixed Income Groups, forms the core of JPMAM's investment management operations. In addition to the knowledge and experience of our individual investment professionals, the stability of the team has enabled JPMAM to develop strong relationships with local clients.
- The Fund invests in a diversified portfolio of income producing equities, bonds and other securities and is therefore exposed to a range of investment related risks. These related risks include equity market, credit market (including the risk of investing in below investment grade or unrated debt securities) and real estate market (associated with the risk of investing in REITs and other property related securities; direct investment in real estate is not permitted).
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
- Investment involves risk. Please refer to the offering document(s) for details, including the risk factors.