JP Morgan Asset Management has launched a new Ucits US corporate bond fund in its Sicav range, JPMorgan Funds – US Corporate Bond Fund.
The US Corporate Bond Fund will seek to outperform its benchmark (Bloomberg Barclays US Corporate Investment Grade Index) by investing primarily in US dollar investment grade corporate debt securities.
The fund will seek to generate alpha from security and sector selection driven by the research of credit analysts. It will be co-managed by Lisa Coleman, global head of Investment Grade Credit; Jeremy Klein, portfolio Manager; and Lorenzo Napolitano, portfolio manager.
The team currently co-manages the $2.4bn US-domiciled JPMorgan Corporate Bond Fund which has the same features as the new Ucits fund launched.
Coleman heads a portfolio management team responsible for over $40bn in investment grade credit client assets and is also co-manager of the Luxembourg-domiciled JPMorgan Funds – Global Corporate Bond Fund.
Commenting on the launch, Coleman said: “As a function of extraordinarily accommodative global monetary policy, nearly one in three government bonds today are trading on a negative yield, and more than 60% of the global government bond market is yielding less than 1%. The sheer amount of low and negative-yielding government bonds is increasingly pushing investors into corporate debt as they seek positive returns.
“Simultaneously, the significant incremental purchasing activity by central banks is underpinning valuations of higher quality credit. Those strong technical factors will remain meaningful tailwinds for the performance of investment grade credit.”
Massimo Greco, head of European Funds, JP Morgan Asset Management, added: “JPMorgan Funds – US Corporate Bond Fund, which taps into our long history of expertise in USD credit markets, offers a diversification opportunity to European investors grappling with the European Central Bank’s negative interest rate policy. The reality is that the US remains a market where fixed income yields look more attractive on a relative basis.”