JPM Asset Management has launched a new fund designed to follow in the footsteps of the €16 billion Global Income fund, the company has announced.
The JPMorgan Investment Funds - Global Income Conservative fund will be managed by the same team overseeing the JPM Global Income fund.
Citywire + rated Michael Schoenhaut will be lead portfolio manager on the fund and will be supported by co-portfolio managers Eric Bernbaum and Citywire A-rated Talib Sheikh, based in New York and London respectively.
The fund will offer broad diversification with the flexibility to source income across geographies and asset classes, tapping into JPM’s global investment resources. The fund seeks to provide a regular source of income with a target yield range of 3-5% and a target volatility range of 3-7%.
It will be managed with a lower risk and volatility profile, more akin to a traditional 30% equity, 70% fixed income balanced portfolio relative to its Global Income fund counterpart, which has a volatility profile more in line with a traditional 60% equity, 40% bond balanced portfolio.
Commenting on the launch, head of European funds at JP Morgan Asset Management, Massimo Greco, said: ‘As bond yields remain near record lows as a result of central bank policy, the need for income is stronger than ever among many investors, forming a critical component of overall total returns.'
'A multi-asset approach with the flexibility to respond to changing market conditions expands the opportunity set in the pursuit of higher income.’
‘The Global Income Conservative fund will have the same flexibility to seek strong risk-adjusted returns across income generating assets globally as the Global Income fund, but is geared towards investors who have a higher degree of sensitivity towards volatile markets.’