Fund Review: JPM Multi-Asset Income fund

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Fund Review: Multi-Asset Income

The fund’s underweight to emerging market equities and emerging market debt has hurt it recently. “However, we are not prepared to increase our exposure to those asset classes at this point,” he says. “Macroeconomic challenges from weakening currencies, declining commodity markets and fund outflows continue to weigh on investor sentiment.” The portfolio has an allocation of 3.6 per cent to emerging market equities and 7.2 per cent to emerging market debt.

Mr Sheikh adds: “In our view, the last five years have predominantly been about investors selling fixed income-type investments in order to buy equity-type investments, largely incentivised by central bank monetary policy. We think we may be on the cusp of approaching a new phase, in which investors begin to think about asset allocation less as a broad brush differentiation between asset classes and start to concentrate much more on what they hold within asset classes as well as their regional exposures. In that context, we continue to drill down into regions such as Europe as part of the hunt for risk-adjusted income opportunities.”

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Ken Rayner, director, Rayner Spencer Mills Research

JPMorgan has the resources to manage a global income strategy of this nature with teams spread across asset classes and geographies. This is important given the emphasis on the use of internal specialists to provide returns. The top-down asset allocation view is also expected to help drive returns but more through longer-term allocations with some shorter-term tactical allocations to other non-core asset classes. This fund represents a strong option for investors looking for diversification and an attractive level of income.