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By Square Mile Research, 22 Jan 21
A disciplined approach that seeks to deliver superior risk adjusted returns. Watch the Talking Factsheet for the JP Morgan US Equity Income fund with John Monaghan, Head of Research.
The Talking Factsheets videos are an innovative way to bring the factsheets to life, combining Square Miles independent, qualitative fund research with accessible video content. The aim is to give advisers and financial institutions further depth to their research and help them make informed decisions.
Square Mile typically rate between 250 to 300 funds from a universe of around 2,800 funds. The ratings process is fuelled by a qualitative approach that focuses on the fundamentals: manager and environment, investment philosophy and objectives, investment process, portfolio construction, management of risk and value for money.
The Closure To New Investors Is Expected To Take Effect At The End Of September
JP Morgan plans to close its $48.3bn fund to new investors by September 30, according to a filing with the Securities and Exchange Commission.
The fund has reached a level of assets where we believe that it is in the best interest of our shareholders to limit future investments, JP Morgan said in a statement.
Morningstar analyst Claire Butz called the funds closure welcome as it has gathered over $7.3bn in inflows since 2020. Butz singled out lead manager as a key reason for the strategys long-term success Citywire + rated Hart has been on the fund since 2004, working with co-managers and , who were added to the fund in 2019.
Lower volatility and greater protection in market drawdowns have resulted in even more impressive risk-adjusted results, Butz wrote on Wednesday.
Butz had previously awarded gold ratings in May to all but one of the funds share classes, with the outlier earning a silver rating.
Terms of the soft closure included avenues for some institutional investors, group retirement plans and other more specialized shareholders to continue to access the fund.
The fund is ranked 83 out of 317 Large Value funds tracked by Citywire for three-year total returns to the end of July. During that time it was up 41.8% compared with 36.3% from the category average.
Across all vehicles, the strategy has surpassed $75bn in assets, according to Butz.
Content From
Broadening Fixed Income Sources In An Inflationary World
Investors may face the prospect of another year of negative real cash returns in 2022, or possibly longer. This means staying invested and looking for assets that generate income will be important to ensure the overall portfolios purchasing power is not eroded by inflation.
Even as inflationary pressure is building up in certain regions, and some central banks are considering raising rates, we believe that any such moves are likely to be gradual.
As investors intensify the search for high-grade and high-yield1 allocation ideas2, its crucial to employ an unconstrained and flexible approach to differentiate and invest where opportunities can be found.
Source: J.P. Morgan Asset Management, Bloomberg. Data reflect most recently available as of 29.11.2021.**Expectations are derived from the 3-month moving average of the overnight index swap forward rates. Past performance is not a reliable indicator of current and future results . Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.
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Understanding The Secure Act Annuity Safe Harbor
01/07/2022
Fear of potential liability drives many of the decisions defined contribution plan fiduciaries make. And fear has been a key reason DC plan sponsors have resisted including guaranteed retirement income options in their 401 or other plans. One of the things they have been concerned about is the possibility however remote that the insurer they select to issue annuities to provide guaranteed income to their retired participants will become insolvent and unable to make the promised payments.
A 2008 Department of Labor rule set out what was intended to be a safe harbor for selecting annuity providers for DC plan payments, but most plan sponsors didnt feel the rule gave them enough protection. Among other things, it required them to conclude that the annuity provider is financially able to make all future payments under the annuity contract.1 To many plan sponsors, making such a determination seemed extremely difficult, if not impossible. They reasoned that while the insurer might be financially strong today, they couldnt predict whether the company would be able to make all future payments possibly decades from now, when many retirees would be expecting to receive monthly annuity checks.
The SECURE Act creates a safer safe harbor
Obtaining written representations from the insurer
The fiduciary will be deemed to have satisfied the requirement regarding the financial capability of the insurer if:
A clearer path to fiduciary protection
Jp Morgan Launches Three Sustainability Funds
By Sally Hickey
JP Morgan Asset Management has launched three sustainability-focussed OEICs in what is its first UK thematic offering.
The firm’s Climate Change Solutions fund will invest in forward-thinking companies which are focusing on solutions to climate change, including those producing clean energy or investing in less carbon-intensive forms of agriculture or construction.
The fund will be managed by Francesco Conte, Yazann Romahi and Sara Bellenda.
The asset manager also launched a UK Sustainable Equity fund, as well as a Global Sustainable Equity fund, both of which will exclude investment in unsustainable sectors.
The UK sustainable equity fund will be managed by Anthony Lynch, Callum Abbot and Alexandra Sentuc, and the global sustainable equity fund will be managed by Timothy Woodhouse, Joanna Crompton and Sophie Wright.
Dale Erdei, head of UK funds at JPMAM, said: Were delighted to be growing our sustainable offering in the UK market and particularly excited to be launching a thematic portfolio which has a differentiated approach.
“The climate change solutions fund is designed to help investors intelligently capture innovative investment opportunities and technologies facilitating the low carbon transition.
The climate change solutions fund will use JPMAMs proprietary natural language processing tool, ThemeBot, to screen 13,000 global stocks and identify global firms that are acting on climate change.
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Why Invest In The Jpmorgan Funds
Investing opportunistically across multiple debt markets and sectors without benchmark constraints, we harness our top convictions to capture attractive income opportunities while managing risk through diversification. Employing an unconstrained approach, we navigate dynamically across the fixed income spectrum as market conditions change.
A wide spectrum of fixed income sectors
Different bonds react differently as market conditions change. With flexible allocations across sectors and geographies, JPMorgan Funds Income Fund seeks to minimise fluctuations in dividend payments of its monthly distribution share classes* under different market conditions.
In anticipation of rising rates, shorter duration holdings and high-yield1 credit are currently our high-conviction ideas2.
With a flexible strategy, the Fund invests opportunistically across different sectors to seek optimal income potential even as interest rates change.
Seeking yield across individual fixed income sectors
What is duration?
In fixed income investing, duration is a gauge of interest rate risk, showing how bond prices and yields will likely change when interest rates move. Generally, longer duration bonds may suffer more price decline in response to a rise in interest rate.
How we manage duration?
Actively managing duration
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