Important information

JPMorgan Multi Balanced Fund

  1. The Fund invests primarily in securities globally. 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 relating to dynamic asset allocation strategy, equity, debt, investment grade bond risks, interest rate risk which may affect the price of bonds, downgrading, valuation, credit rating, credit, distribution (no assurance on distribution, distribution rate or dividend yield), sovereign debt, emerging market, liquidity and currency risks and risks of investing in other collective investment schemes. Pertaining to investments in below investment grade or unrated debt securities, these securities may be subject to higher liquidity risks and credit risks comparing with investment grade bonds, with an increased risk of loss of investment. For currency hedged classes, risks associated with the hedging and class currency. 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. The distribution amount and net asset value per unit of a currency hedged class may be adversely affected by differences in the interest rates of the reference currency of the relevant currency hedged class and the Fund’s base currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital than other classes of units.
  4. Investors may be subject to substantial losses.
  5. Investors should not solely rely on this document to make any investment decision.

Dynamic multi-asset investing helps navigate market volatility

Which is why JPMorgan Multi Balanced Fund dynamically invests in stocks and bonds.

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Why a balanced approach?

Rising rates environment -
bonds alone may not suffice

In a rising rates environment, bonds are likely to come under pressure. Having bonds alone in a portfolio may not compare favourably against a balanced approach with some equity exposure.

Why a balanced approach?

Unexpected market events -
equity alone may not be the solution

In 2017, global policy divergence, geopolitical and economic uncertainties might cause further turmoil across financial markets. A balanced portfolio with exposure to bonds – which are less volatile than equities – will likely offer a cushion effect during market downturns.

What are balanced funds?

Balanced funds invest in stocks and bonds and sometimes money market instruments in an attempt to reduce risk, but still provide capital appreciation and income.

Source: US Securities and Exchange Commission, J.P. Morgan Asset Management, as of end-February 2017.

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Why invest in JPMorgan Multi Balanced Fund?


Lower volatility* with dynamic allocation

Unlike traditional balanced funds which tend to maintain a relatively fixed asset class exposure, the Fund is designed to take a flexible approach and may hold between 10% and 50% of its total net asset value in equity securities and between 50% and 90% in debt securities.

* The Fund takes a balanced approach and invests in stocks and bonds with a global exposure, which is a diversified strategy that historically exhibits lower volatility versus equity investing.

Lower volatility for a balanced approach over the past decade
10-year annualised volatility
5% 10% 15% 20% 25% EmergingMarket Equities DevelopedMarketEquities GlobalCorporateHigh Yield The Fund'sreferencebenchmark Global CorporateInvestmentGrade GlobalGovernmentBond Cash

Source: Bloomberg, Dow Jones, FactSet, J.P. Morgan, MSCI, J.P. Morgan Asset Management.

All data represent total return in US Dollar terms. 10-year price return data is used to calculate annualised volatility and reflects the period 31.12.2006 – 31.12.2016.

Past performance is not indicative of future performance. Investors should note that different asset classes have varying risk/return profiles.

Emerging Market Equities = MSCI Emerging Market Index (USD net), Developed Market Equities = MSCI World Index (USD net), Global Corporate High Yield = Bloomberg Barclays Global High Yield – Corporate, the Fund’s reference benchmark = 45% JPM Government Bond Index Global (Total Return Gross) Hedged to USD / 30% MSCI World Index (Total Return Net) Hedged to USD / 25% Bloomberg Barclays Global Aggregate Corporate – Total Return index hedged USD, Global Corporate Investment Grade = Bloomberg Barclays Global Aggregate – Corporate, Global Government Bond = J.P. Morgan GBI, Cash = Bloomberg Barclays U.S. Treasury – Bills (1-3 months).


Taking advantage of global trends

The fund managers strive to identify the key driving forces across the globe and seek to benefit from global economic trends. The investment professionals then devise relevant investment strategies and apply bottom-up screening.

Taking advantage of global trends US economic strength Emerging market rebalancing Europe gradual growth recovery China in transition Japan beyond Abenomics
  • US economic
  • Emerging market
  • Europe gradual
    growth recovery
  • China
    in transition
  • Japan beyond

  • Global policy
  • Supply side

Source: J.P. Morgan Asset Management, as of 31.01.2017. Shown for illustrative purposes only.


Capturing growth opportunities with flexibility in fixed income investing

Leveraging the strong capabilities of J.P. Morgan Asset Management’s multi-asset research platform, the Fund seeks to identify the best ideas across the fixed income space, covering sovereign, investment grade and high yield bonds.

For the equity portion, there are no restrictions on market capitalisations, industries or geographies. The investment team may take advantage of the rotation between cyclicals and defensives.

Strong capabilities of Multi-Asset Solutions
JPMorgan Multi Balanced Fund

Source: J.P. Morgan Asset Management, as of 31.12.2016. Includes portfolio managers, research analysts, traders and client portfolio managers with VP title and above.

Who might consider investing in this fund?

Investors seeking:

Lower volatility* investing with dynamic
asset allocation

Global expertise to benefit from
global trends

Multiple currency choices ranging from USD
and HKD to AUD, EUR and RMB+

Investors should seek professional advice regarding the suitability of any investment products.

* The Fund takes a balanced approach and invests in stocks and bonds with a global exposure, which is a diversified strategy that historically exhibits lower volatility versus equity investing.
+ The RMB Hedged (mth) Class is not available in the J.P. Morgan Asset Management Investment Center.