JPM2948 Multi Asset Income 4pp:JPM2948 Multi Asset Income 4pp


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

JPM2948 Multi Asset Income 4pp:JPM2948 Multi Asset Income 4pp

  1. 1. For professional advisers only – not for onward distribution JPM Multi Asset Income Fund All data as at 30 June 2009 unless otherwise indicated 1. A range of 6.5 - 7.5% p.a. (anticipated current yield) – this range is not fixed and will vary Key facts according to market conditions*. “The new JPM Multi Asset Income 2. Makes quarterly distributions – to meet clients’ need for regular income in today’s low Fund is designed to help investors interest rate environment. achieve an attractive and regular 3. Global investment strategy – provides access to a diverse range of income opportunities in a income from a globally diversified single portfolio. portfolio of income producing 4. Multi asset portfolio – invests in an actively managed range of assets to produce an expected securities” attractive income with lower volatility than many equity income funds. Michael Schoenhaut, Portfolio Manager 5. Highly experienced management team – J.P. Morgan is a leader in Multi-Asset investment strategies with our Global Multi-Asset Group drawing on our considerable expertise from around the world. Interest rates are expected to remain low, by historical standards, for some time. Therefore, Attractive investors who rely on their investments to generate or supplement their living expenses will be income target forced to look for new sources of regular income. Our new JPM Multi Asset Income Fund offers a potential solution to this problem by targeting a yield of one month Libor plus 2.5% p.a. net of fees. The anticipated current yield is expected to exceed this target as the difficult market conditions of Anticipated 2008 have seen a drop in bond prices, causing the yield to increase for many of the assets within current yield the portfolio. 6.5% -7.5% p.a. Although the income from the fund will be variable, it will aim to produce yield that is higher than investors might expect to receive from traditional sources. The anticipated current yield is based upon both the dividends paid by the equities within the portfolio over the last 12 months and the coupon and price appreciation or depreciation of the portfolio's bonds at the time of purchase. The JPM Multi Asset Income Fund has been designed to meet investors’ growing demand for income Focused on income in today’s low interest rate environment. The fund’s globally diversified securities are chosen by our specialist investment teams specifically for their income characteristics. Therefore, only those securities with the most attractive income profiles are selected for the fund’s portfolio. As a result, this means that capital growth or capital preservation is secondary to the fund’s main objective of income generation. You should remember, however, that any income produced is not guaranteed and assets may also be sold to meet the fund’s income objective. Nevertheless, the fund still provides the potential for long- term capital growth. * The investment manager’s target income is one month sterling Libor plus 2.5% net of fees. This target is not part of the fund’s stated investment objective or policy in its prospectus.
  2. 2. JPM Multi Asset Income Fund J.P. Morgan Asset Management is a leader in the management of multi-asset portfolios and the Managed by portfolio will be managed by the Global Multi Asset Group. This group is positioned at the heart J.P Morgan’s Global of our investment capability and are able to draw on the analysis, research and insight of our investment teams around the world. Multi Asset Group The fund’s portfolio manager is Michael Schoenhaut, a senior member of our Global Multi Asset Group based in New York. The group is a 40-strong team of portfolio managers, analysts and strategists focused on delivering the highest quality multi-asset portfolios through superior asset allocation and stock selection. The fund has a flexible allocation policy which can allow it to move between asset classes, depending Investment process – where the most attractive income opportunities currently lie. Asset allocation is decided by our Global maximising Multi Asset Group’s Investment Committee, which makes this decision based on the output from their quantitative models and qualitative input from the team’s senior investors. investment expertise Asset allocation and portfolio construction Global Investment High Yield Global Equities Global REITS Grade Fixed Fixed High Yield Convertibles Income Equities Income Asset allocation Portfolio Security selection within each asset class is then delegated to the specialist investment teams within J.P. Morgan Asset Management. This delegation allows the fund to benefit from the large pool of resources and expertise available within the firm. Securities are held directly in the fund’s portfolio, rather than through investing in other funds, so there is no double charging. Also, all investments are chosen exclusively for their income characteristics. The fund’s portfolio manager, Michael Schoenhaut, ensures that the final portfolio reflects both the asset allocation views of the Global Multi Asset Group and the stock ideas generated by our dedicated investment teams. As a result, the Global Multi Asset Group maintains ultimate responsibility for the fund’s overall performance. Diversification has been the bedrock of sensible, long term financial planning for as long as people A flexible, multi-asset have been investing. However, multi-asset funds have only become available to individual investors approach to maximise relatively recently. The flexibility of modern fund structures and governance have enabled us to create investment funds that not only diversify by geography, but also by asset class – something income that individual investors would otherwise find difficult to achieve.
  3. 3. JPM Multi Asset Income Fund Portfolio allocations* Fund construction by asset class 10% 4% Global Equity 25% Global REITS 6% High Yield Bonds 5% Emerging Market Debt 5% Investment Grade Bonds (UK and US) Convertible Bonds Cash 45% A significant benefit of the JPM Multi-Asset Income Fund is that it is not reliant on any one asset class to provide its income. In a single asset fund, the manager can do his best to maximise income or performance but, if the entire asset class is falling, then there is little he can do to buck the trend. This fund is unconstrained, allowing the fund manager to invest where he sees the best opportunity and to avoid underperforming assets. We believe this gives the fund the best opportunity to maintain an attractive level of income through varying market conditions. *As of end of July 2009. Due to the nature of the fund’s underlying assets and their risk profiles, it is important to note A medium to long- that the volatility of the portfolio can be expected to be relatively high. term investment Investors should also bear in mind that the fund has the potential to lose as well as increase capital in the short term. As a result, it is aimed at investors who have a medium to long-term investment horizon horizon (three and five years), which will allow them the chance to ride out short-term volatility in underlying asset prices. J.P. Morgan Asset Management is one of the world’s largest asset managers, with expertise in Why J.P. Morgan managing clients’ money stretching back almost 180 years. Our clients range from individual investors to corporations and governments and, over the years, they have challenged us to produce Asset Management? investment strategies that meet a variety of needs and objectives. It is this diverse set of client requirements that has led us to develop investment products encompassing a wide variety of geographies and asset classes. Only a company with the resources of J.P. Morgan Asset Management can combine on the ground local investment expertise with market leading research, strategy and product development. These attributes, combined with our experience of innovating to meet client needs, we believe, means that no-one is better placed to bring you market leading multi-asset strategies.
  4. 4. JPM Multi Asset Income Fund Michael is a vice president and is head of portfolio construction and Michael Schoenhaut, implementation for GMAG in the US. He is also a member of the Investment Portfolio Manager Committee and focuses on portfolio construction, manager analysis and tactical asset allocation. An employee since 1997, Michael is also a portfolio manager for balanced strategies, responsible for quantitative research and implementation. Michael obtained a BS in Operations Research and Industrial Engineering from Cornell University and is a CFA Charterholder. Key Facts Portfolio managers: Michael Shoenhaut and Michael Fredericks Launch date: 30 June 2009 Currency: GBP. Non sterling exposure will be hedged to the fund’s benchmark Benchmark: 10% JPMorgan Government Bond Index – Emerging Markets Global Index (Total Return Gross) in GBP 45% Merrill Lynch High Yield BB-B Constrained Index (Total Return Gross) hedged to GBP 10% Global Property Research 250 (Total Return Net) hedged to GBP 25% Morgan Stanley Capital International World Index (Total Return Net) hedged to GBP 10% Barclays Euro Broad Investment Grade (Total Return Gross) in GBP Charges Initial charge 4.25% Annual Management fee 1.25% For professional advisers only – not for onward distribution Telephone calls are recorded to ensure compliance with our legal and regulatory obligations and internal policies. The information in this document is based on our understanding of law and regulation at the time of print and is subject to change. The value of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Please note that bond funds may not behave like direct investments in the underlying bonds themselves. By investing in bond funds the certainty of a fixed income for a fixed period with a fixed return of capital are lost. Investments in smaller companies may involve a higher degree of risk as small cap markets tend to be much more volatile than their larger capitalisation counterparts. Investments may be concentrated in any one country, sector or issuer. The fund may have a significant exposure to high yield bonds, emerging market bonds or non investment grade or unrated bonds at any time. Non- investment grade bonds may increase the risk to capital. Derivatives may be used to achieve fund objectives and allocations may vary significantly over time. The yield or the capital value of the fund (or both) can fluctuate and investors may not get back their original investment. In the case of a new fund, there is a risk that if the anticipated size of the fund is not achieved, the proportion of charges and expenses allocated to the investment may be higher and the value of the investment consequently reduced. Please note that investments in foreign markets are subject to special currency, political, and economic risks. Exchange rates may cause the value of underlying overseas investments to go down or up. Investments in emerging markets may be more volatile than other markets and the risk to capital is therefore greater. Also, the economic and political situations may be more volatile than in established economies and these may adversely influence the value of investments made. Issued by JPMorgan Asset Management Marketing limited which is authorised and regulated by the Financial Services Authority. Investment is subject to documentation (Prospectus, Simplified Prospectus and Terms and Conditions), copies of which can be obtained free of charge from JPMorgan Asset Management Marketing Limited. Registered in England No. 288553, 125 London Wall, London EC2Y 5AJ. LV-JPM2948 07/09