December 2020 AVAILABLE FOR PUBLIC CIRCULATION | Page 1 of 2
Important Information
1. The Fund invests in a diversified portfolio of income-producing equities, bonds and other securities. The Fund will primarily invest (at least 70%) in debt and equity securities. The Fund will have limited RMB denominated underlying investments.
2. The Fund is therefore exposed to a range of investment related risks which includes risk related to dynamic asset allocation strategy, debt securities (including investment grade bond risks, below investment grade/unrated invest risk, credit risk, interest rate risk, sovereign
debt risk and valuation risk), asset backed securities, mortgage backed securities, collateralised loan obligations and asset backed commercial papers, equity, real estate market (associated with the risk of investing in REITs and other property related securities; direct investment
in real estate is not permitted), emerging markets, concentration, currency, derivatives, liquidity, hedging, class currency, currency hedged classes and Eurozone sovereign debt crisis. For RMB hedged class, risks associated with the RMB currency and currency hedged classes
risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance
that RMB will not be subject to devaluation at some point. The Manager may, under extreme market conditions when there is not sufficient RMB for currency conversion and with the approval of the Trustee, pay redemption monies and/or distributions in USD.
3. Where the income generated by the Fund is insufficient to pay a distribution as the Fund declares, the Manager may at its discretion determine such distributions may be paid from capital including realised and unrealised capital gains. Investors should note that the payment
of distributions out of capital represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to that original investment. Any payments of distributions by the Fund may result in an immediate decrease in the net asset
value per unit.
4. Investors may be subject to substantial losses.
5. Investors should not solely rely on this document to make any investment decision.
MAXIMISING INCOME POTENTIAL
THROUGH A DECADE
JPMorgan Multi Income Fund The Asset Triple A Awards
Fund Manager of the Year – Mixed Asset
Dynamic allocation to capture income opportunities globally
The Fund’s performance after different periods of drawdowns+
Diversified across
30%
Subsequent 6-month return Subsequent 12-month return Subsequent 24-month return
25%
20%
15%
>80 >2,700 >10 Average
Rating^
10%
markets securities asset classes
BB 5%
0%
European Debt Crisis Taper Tantrum Crimea Crisis Chinese Stock Chinese Stock US-China COVID-19
Turbulence (leg 1) Turbulence (leg 2) Trade Tensions
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Issued by The Asset, 2019 award, reflecting performance of previous calendar year. ^ Source: J.P. Morgan Asset Management, Moody’s, S&P, Fitch, Kroll, Morningstar, as of end-November
2020. The credit rating is based on the highest of different rating agencies. Average rating is the weighted average of the credit ratings of bond holdings (including non-rated bonds), excluding preferreds, perpetuals, convertibles and net liquidity. + Different periods of drawdowns:
European Debt Crisis from 16.09.2011 to 04.10.2011; Taper Tantrum from 08.05.2013 to 24.06.2013; Crimea Crisis from 04.09.2014 to 16.10.2014; Chinese Stock Turbulence from 27.04.2015 to 29.09.2015 (leg 1) and 11.02.2016 (leg 2); US-China Trade Tensions from 26.01.2018 to
24.12.2018; COVID-19 from 17.02.2020 to 23.03.2020. Source: J.P. Morgan Asset Management, as of 30.11.2020. USD (mth) class return, NAV to NAV in USD with income reinvested. Calendar year return: 2015 -1.6%; 2016 +7.4%; 2017 +10.6%; 2018 -5.0%; 2019 +14.8%; 2020 YTD
+1.9%. Past performance is not indicative of future performance. The “(mth)” class aims at monthly distribution. Dividend rate is not guaranteed. Distributions may be paid from [Link] to important information 3
December 2020 AVAILABLE FOR PUBLIC CIRCULATION | Page 2 of 2
JPMorgan Multi Income Fund
In focus: Non-agency securitised In focus: High-yield (HY) bonds#
Potential diversifier to other credit allocations due to different Both US and European HY bonds are gradually regaining momentum,
fundamental drivers supported by central banks’ asset purchasing programmes to cushion
Examples: residential/commercial mortgages and auto loans economic risks
Historically, such assets have exhibited a relatively low correlation to Fund’s The hunt for income may support the demand for US HY, which offers more
equity and credit markets; greater resilience during periods of equity allocation: attractive yield opportunities; meanwhile, European HY provides potential
drawdowns diversified diversification benefits with its higher quality in general and shorter duration
After the panic selloff in 1Q 2020, the current market outlook has income Sector-wise, the portfolio is currently overweight in more defensive
improved with central banks’ asset purchases which increased liquidity sources areas, such as telecommunications, and underweight in energy and
across fixed income sectors metals and mining
Returns of different assets during periods of Active management of US HY positions#
US stock drawdowns
30% Weight in US HY sleeve
Jul to Sep
2015 Implied default rate
25%
Jan to Mar 32.6% Global Equities
2018 28.2% High Yield Bonds 20%
Lower allocation
Sep to Dec 11.7% Non-Agency Securitised to sectors with
2018 US Equities 15% higher implied defaults
7.4% Preferreds / Perpetuals
Apr to May US High Yield 5.6% REITs
2019 10%
RMBS 3.7% US IG Fixed Income
Jul to Aug ABS 3.6% Net Liquidity
2019 5%
CMBS 2.2% Global Infrastructure Equities
Jan to Mar 2.2% Convertible Bonds 0%
2020
Communications
Consumer
(non-cyclical)
Consumer
(cyclical)
Industrials
Financials
Energy
Technology
Basic
Materials
Utilities
1.1% Emerging Market Debt
Aug to Sep
1.0% Global Government Bond
2020
0.6% Agency Securitised
-25% -20% -15% -10% -5% 0% 5% 0.1% Short Duration Fixed Income
ABS: asset-backed securities. CMBS: commercial MBS. IG: investment grade. MBS: mortgage-backed securities. REITs: real estate investment trust. RMBS: residential MBS. The opinions and views expressed here are those held by the author as at the date of this document, which are
subject to change and are not to be taken as or construed as investment advice. The Fund is an actively managed portfolio; holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. For illustrative
purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual's circumstances and market conditions.
Securitised products are securities that are backed by pools of financial assets. Agency securitised products are issued or guaranteed by government-related bodies. Non-agency securitised products are issued by private entities, such as financial institutions. Source: Bloomberg,
J.P. Morgan Asset Management, as of end-September 2020. Calculated using monthly total returns in USD. Indices used: S&P 500 Index (US Equities), Bloomberg Barclays US Corporate High Yield Index (US High Yield), Bloomberg Barclays US Securitised: ABS Index (ABS), Bloomberg
Barclays US CMBS ERISA-Eligible Index (CMBS), Markit iBoxx Broad US Non-Agency RMBS Index (RMBS). Indices do not include any fees or operating expenses and are not available for actual investment.
# It refers to corporate bonds which are given ratings below investment grade and are deemed to have a higher risk of default. For illustrative purposes only, exact allocation of portfolio depends on each individual’s circumstances and market conditions. Yield is not guaranteed.
Positive yield does not imply positive return. Source: Bloomberg, J.P. Morgan Asset Management, as of end-September 2020. Implied default rates are calculated using a 30% recovery rate and assuming 250 basis points of excess spread.
Unless stated otherwise, all fund information is sourced from J.P. Morgan Asset Management, as of end-November 2020. The information contained in this document does not constitute investment advice, or an offer to sell, or a solicitation of an offer to buy any security, investment
product or service. Informational sources are considered reliable but you should conduct your own verification of information contained herein.
Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document(s) for details, including the risk factors. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.