JPM Multi-Asset Income Fund enters IMA Cautious Managed Sector
The JPM Multi-Asset Income Fund has changed sector from the IMA Specialist to the IMA Cautious Managed sector. The sector change better reflects the profile of the fund and reinforces its standing as a core investment solution.
The managers of the £68m fund have also introduced emerging market income stocks to the portfolio as well as a covered call strategy to maximise income generation within the fund.
The JPM Multi-Asset Income Fund is currently yielding 4.9% and is a global multi-asset strategy allowing the managers to call upon the best income opportunities from around the world. It has a flexible allocation policy which can allow it to move between asset classes, depending on where the most attractive income opportunities currently lie.
The fund was launched in June 2009 and is currently top decile in the Cautious Managed sector with a return of 13.8% over 1 year and 35.6% since inception. The fund's volatility currently stands at 5.4 which is in line with the 5.28 sector average over 1 year. The average return for the sector over 1 year was 10.7%.
Olivia Mayell, Client Portfolio Manager of the JPM Multi-Asset Income Fund said: "As the fund is unconstrained, it allows us to invest where we see the very best opportunities for income and to potentially avoid underperforming assets. We believe this gives the fund the greatest likelihood of maintaining an attractive level of income through varying market conditions and continuing to produce strong returns from a balanced portfolio of assets."
On the changes to the fund, Mayell commented: "The fund has a lower volatility level than many other income funds and it fits well alongside others in the Cautious Managed sector. In this sector we can now be compared against our closest peers and to enter it in the top decile with a below average level of volatility is a great achievement and testament to the expertise of our team.
"With interest rates still low in the UK, the decision to introduce emerging market income stocks to the portfolio as well as a covered call strategy has helped to enhance income without compromising volatility. Emerging market income stocks are not only among the highest yielding across the globe, they also offer attractive growth potential."