JPMorgan Global Strategic Bond Fund’s investment objective is to achieve a return in excess of the Bloomberg AusBond Bank Bill Index (iBenchmarki) by exploiting investment opportunities in, amongst others, the debt and currency markets, and using financial derivatives instruments where appropriate. The Fund will invest pursuant to its Investment Objective the majority of its assets in debt securities issued in developed and emerging markets, including, but not limited to, debt securities of governments and their agencies, state and provincial governmental entities, supranational organizations, corporations, banks, asset-backed securities and mortgage-backed securities.
•The fund generated negative returns in August, driven by our exposure to emerging market debt. Hard currency sovereigns and corporates were the principal detractor, as the negative impact from the jump in US Treasury yields outweighed a positive spread-tightening contribution. Local currency bonds, where we are selectively positioned in highconviction countries, suffered from negative foreign exchange movements over the month and detracted from performance.
•Convertible bonds followed the retracement in equities and delivered negative returns, which were partially offset by the modest positive contribution from our US and European high yield positions. Our exposure to investment grade corporate credit also detracted, particularly highquality industrial names, as the sector priced in the upturn in interest-rate expectations.
•Some negative returns were offset by positive performance from our government rates positions, primarily our short US Treasury position as yields rose sharply on resilient economic data and higher-for-longer interest rate sentiment. Securitised products were also a marginal contributor.
•Over the month, we reduced headline duration from 3.6 to 3.5 years, maintained our exposure to developed market credit and securitised products and reduced our exposure to emerging market debt.
What is JPMorgan Global Strategic Bond Fund JPMorgan Global Strategic Bond Fund is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Multi-Strat Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The JPMorgan Global Strategic Bond Fund has Assets Under Management of 263.87 M with a management fee of 0.4%, a performance fee of 0.00% and a buy/sell spread fee of 0.15%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the JPMorgan Global Strategic Bond Fund has returned 1.08% in the last month. The previous three years have returned 1.81% annualised and 3.06% each year since inception, which is when the JPMorgan Global Strategic Bond Fund first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since JPMorgan Global Strategic Bond Fund first started, the Sharpe ratio is NA with an annualised volatility of 3.06%. The maximum drawdown of the investment product in the last 12 months is -1.1% and -6.62% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The JPMorgan Global Strategic Bond Fund has a 12-month excess return when compared to the Fixed Income - Multi-Strat Income Index of -0.84% and -0.24% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. JPMorgan Global Strategic Bond Fund has produced Alpha over the Fixed Income - Multi-Strat Income Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Multi-Strat Income Index category, you can click here for the Peer Investment Report.
What level of diversification will JPMorgan Global Strategic Bond Fund provide?
JPMorgan Global Strategic Bond Fund has a correlation coefficient of 0.89 and a beta of 1.26 when compared to the Fixed Income - Multi-Strat Income Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on JPMorgan Global Strategic Bond Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the JPMorgan Global Strategic Bond Fund with the Global Aggregate Hdg Index?
For a full quantitative report on JPMorgan Global Strategic Bond Fund compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the JPMorgan Global Strategic Bond Fund to do my own analysis?
To sort and compare the JPMorgan Global Strategic Bond Fund financial metrics, please refer to the table above.
Has the JPMorgan Global Strategic Bond Fund been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in JPMorgan Global Strategic Bond Fund?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the JPMorgan Global Strategic Bond Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - July 31, 2023 •The fund generated positive returns in July, driven by our exposure to investment grade corporate credit, where spreads tightened over the month. Cyclicals performed well, primarily in financial names, where we cautiously added back some risk on attractive valuations and to provide additional carry.
•We remain net short government bond duration, primarily through our short US Treasury position, which added to performance as yields rose on continued monetary policy tightening from the Federal Reserve. Emerging market debt contributed, with positive returns from hard currency sovereigns and corporates, particularly in the high yield part of the market given the broader risk-on sentiment. Local currency bonds also contributed.
•Convertible bonds followed the July rally in equities and showed positive returns. Securitised products were also a minor contributor. While risk sectors benefitted from resurgent optimism of a ‘soft landing’ for the economy, our defensive positioning in high yield was a marginal detractor overall, where our US and European cash bond positions are fully hedged with US CDX protection.
•Over the month, we increased headline duration from 3.0 to 3.6 years and maintained our exposure to securitised products, developed market corporate credit, and emerging market debt.
Performance Commentary - June 30, 2023 Month in Review
•The fund generated positive returns in June, driven by our exposure to emerging market debt where both local currency bonds and hard currency sovereigns and corporates contributed positively.
•We remain net short government bond duration, where our short US Treasury and German Bund positions helped the fund’s performance in June as yields rose on hawkish rhetoric from the US Federal Reserve and the European Central Bank. Our exposure to investment grade corporate credit delivered modest positive returns, primarily in high-quality industrial names where spreads ground tighter over the month.
•Convertible bonds followed the rally in equities and contributed to performance, and European high yield was a modest contributor, although these positive returns were neutralised by negative returns from our US high yield exposure. Securitised products also detracted, given their sensitivity to rising core rates.
•Over the month, we increased headline duration from 2.8 to 3.0 years, increased our exposure to securitised products through agency mortgage-backed securities and maintained our overall emerging market
Performance Commentary - April 30, 2023 Month in Review
•The fund generated positive returns in April, led by our exposure to investment grade corporate credit across both financial and industrial names, as our up-in-quality bias benefitted from sustained end-of-cycle sentiment in the US. Securitised products contributed as our exposure to high-quality mortgages and asset-backed securities benefitted from a continued flight-to-quality move in the sector. Emerging market debt also contributed modestly through our selective exposure to local currency bonds, where imminent rate cuts are expected.
•High yield detracted over the month, with some underperformance from convertible bonds partially offset by marginally positive returns from our defensive positioning in US and European high yield cash bonds.
•We remain net short government bond duration. Our government rates positions also detracted marginally in April, primarily through our short US Treasury position, as investor optimism regarding a pause in interest-rate rises pushed yields lower.
•Over the month, we increased headline duration from 2.5 to 2.8 years, maintained our developed market credit allocation, maintained our exposure to securitised products and marginally increased our overall emerging market debt exposure.
Performance Commentary - February 28, 2023 Month in Review
•The fund saw negative returns in February, led by our exposure to investment-grade corporate credit – with typically longer-dated bonds which are more sensitive to interest rate increases – as investor optimism of a peak in central bank rates faded.
•Securitised products also detracted, although to a lesser extent as the fund holds mainly high-quality mortgages that tend to have shorter dates and lower rate sensitivity than similarly rated corporate bonds. Our allocation to emerging market debt detracted, primarily in hard currency sovereigns and corporates. High yield was flat for the month, where our defensive positioning limited the fund’s drawdown.
•Most of the negative returns were offset by our government rates positions (where we remain net short government bond duration), primarily though our short US Treasury positioning, as yields climbed with the prospect of further rate increases.
•Over the month, we increased headline duration from 1.4 to 2.0 years, maintained our developed market credit exposure, and marginally increased both our exposure to securitised products and our overall allocation to emerging market debt.
Performance Commentary - January 31, 2023 Month in Review
•The fund saw positive returns, led by our exposure to investment grade corporate credit, as investor confidence surged on the optimistic inflation and growth outlook.
•Securitised products were a significant contributor, mainly high-quality mortgages, as the prospect of a slowdown in core rate rises improved. Our emerging market debt exposure also contributed, particularly hard currency sovereigns and corporates. Though we remain defensive on high yield, our allocation to convertibles was a marginal contributor.
•Some positive returns were offset by underperformance from our government rates positions, where we remain net short government bond duration – primarily through US Treasuries – as yields fell on cooling inflation data.
•Over the month, we maintained headline duration at 1.4 years, reducing our short German Bund positioning and closing our short Italian government bond position, increased our investment grade credit allocation and maintained our exposure to securitised products, high yield and emerging market debt.
Performance Commentary - December 31, 2022 •The fund saw positive returns, led by our government rates positions – most notably in German Bunds and US Treasuries – where we remain net short government bond duration, as yields rose on combative central bank messaging.
•Our allocation to emerging-market debt was a contributor, with some positive returns from our hard-currency exposure and minor gains from our selective exposure to local-currency bonds. US high yield was also a minor contributor, while European high yield and securitised products remained flat.
•Some positive returns were offset by underperformance from our allocation to convertible bonds. Investment grade corporates were also a minor detractor, given their sensitivity to rising core rates.
•Over the month, we increased headline duration from 0.9 to 1.4 years and improved portfolio quality by adding investment grade credit exposure, selling some high yield positions and adding CDX protection. We also marginally reduced our emerging-market debt exposure.
Performance Commentary - November 30, 2022 •The fund saw positive returns, led by our allocation to investment grade corporate credit, as the sector rallied amid expectations of a downshift to more modest core rate increases.
•Our emerging-market debt exposure was a major contributor, led by hard currency sovereigns and corporates, with some additional returns from our selective positioning in local-currency bonds.
•Some positive returns were offset by underperformance from our government rates positions, where we remain net short government bond duration, as yields fell on a positive inflation outlook.
•Over the month, we increased headline duration from 0.3 years to 0.9 years, closed our Chinese local bond position and marginally increased our emerging-market currency exposure.
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