Fund Rationale: JP Morgan Global Bond Opportunities Sustainable Fund

JP Morgan Global Bond Opportunities Sustainable Fund (the “Fund”)
SGD Hedged Institutional Accumulation Shares (ISIN: LU2199324059)
Fund Manager Page

Endowus have selected the Fund for its diversified exposure to global fixed income sectors, its dedication to integrate ESG in the investment process, and the team’s proven track record in managing a flexible fixed income strategy.

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Key Information

Fund Objective: Aims to achieve a return in excess of the benchmark by investing opportunistically in debt securities positively positioned towards debt securities issued by companies and countries that demonstrate effective governance and superior management of environmental and social issues (sustainable characteristics).

Suitability: Investors who seek investment return through an unconstrained exposure of Sustainable Debt Securities and currencies, understand that the portfolio may have significant exposure to higher risk assets (such as HY, EM debt and MBS/ABS) and are willing to accept those risks for potential higher returns, seek an investment that embeds ESG principles, and are looking to use the Fund as part of an investment portfolio and not as a complete investment plan.

Cost:
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* Total Fund-level Fees include fund management fee of 1.00%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.  

Fund Characteristics

Fund Inception: 8 November 2019
Share Class Inception: 30 July 2020
Benchmark: Bloomberg Barclays Multiverse Index

Fund AUM: SGD 991m
Source: MorningStar as of 12 January 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

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Sector Allocation:

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Source: MorningStar as of 30 November 2020. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus have selected the JP Morgan Global Bond Opportunities Sustainable Fund for its diversified exposure to global fixed income sectors, its dedication to integrate ESG in the investment process, and the team’s proven track record in managing a flexible fixed income strategy. The Fund is mandated to flexibly invest across 15 fixed income sectors across 50 countries, including government bonds, investment grade, high yield corporate bonds, emerging market debt, and securitised assets. The Fund’s broad exposure together with its integration of ESG consideration make it a unique offering on the market. 

We see a strong commitment and well-developed governance and ESG integration framework from JP Morgan. ESG is a strategic imperative that has been implemented methodically across each sector team. At the highest level, all analysts across fixed income sectors incorporate ESG factors within the existing omnibus research framework. JP Morgan have developed a materiality matrix that highlights the key ESG related risk factors across all fixed income markets to guide analysts’ research efforts. Each sector team then take a tailored approach in their respective sector. The Fund applies a norms- and value-based negative screening to avoid names in sectors such as fossil fuel and violators of UN Global Compact, and participate in ESG-linked issues such as green bonds and social bonds. It maintains a sustainability profile of the portfolio that is better than the universe. 

The strategy is co-managed by JP Morgan’s Global CIO, Bob Michele, and International CIO, Iain Stealey. They are responsible for the top-down asset allocation, while there are 4 other co-managers responsible for bottom-up security selection, supported by over 250 sector specialists in JP Morgan. The same team have been managing JP Morgan’s Global Bond Opportunities strategy since 2009, and have delivered superior risk adjusted performance relative to their peers in the “global flexible bond” category in Morningstar.

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Updated by Endowus: January 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.