JPMorgan asset management launches the JPM Flexible Bond Fund

JPMorgan Asset Management (‘JPMAM’) has announced the launch of the JPM Flexible Bond Fund (the Fund), offering an innovative development in bond fund management. By investing wherever the best bond opportunities lie globally, the fund has the flexibility to maximise returns during all market environments.

Unlike most other European bond funds, JPM Flexible Bond Fund is able to invest in all fixed income securities in order to take advantage of the best opportunities in global markets, and unlike traditional bond funds, it will use a range of modern investment techniques to boost returns. For example, it will use derivatives (a combination of swaps and futures) to gain exposure to global markets more easily than via traditional bonds, and although most currency risk within the portfolio will be hedged back into euros, the fund can also use currency management to boost returns.

The fund is suited to investors who are looking to produce returns in excess of the European bond market, and to achieve a high level of fixed income diversification from a single fund, while minimising the risk of significant capital loss.

John Donohue, Chief Investment Officer of International Fixed Income at JPMorgan Asset Management said, “The fund’s flexible approach uses a combination of JPMAM’s breadth of fixed income expertise with a stock-picking approach to identify strong investment opportunities across the entire spectrum. This means that the investors benefit from both the right asset allocation mix for the prevailing investment climate, and the best individual investment opportunities as they arise. For European investors, this level of global diversification is far higher than in traditional European bond funds.”

JPM Flexible Bond Fund Facts

Fund managers: Jon Jonsson and Iain Stealey
Launch date: April 2007
Benchmark: Lehman Brothers EUR Aggregate Bond Index (Total Return Gross)
Currency: EUR