JPMorgan Asset Management has launched a JPM Flexible Bond Fund which it claims has the flexibility to maximise returns during all market environments.
JPMAM says that 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.
It will use derivatives 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.
It will be managed by Jon Jonsson and Iain Stealey and was launched in April this year.
JPMAM says 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.
Chief investment officer of international fixed income John Donohue says: “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.”