JPMorgan Multi Income Fund - JP Morgan Asset Management

Important information
1. The Fund invests in a diversified portfolio of income-producing equities, bonds and other 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 equity market related risks, credit market related risks, investment grade bond
risk, interest rate risk which may affect the price of bonds and real estate market related risks (associated with the risk of investing in REITs and other property related
securities; direct investment in real estate is not permitted), liquidity, distribution (no assurance on distribution, distribution rate or dividend yield) and Eurozone
sovereign debt crisis risks. 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. 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.
Available for public circulation
March 2014
JPMorgan Multi Income Fund
Maximising income opportunities from
a dynamic multi-asset strategy
A well-diversified portfolio
Aims At Monthly Distribution*
( * Dividend is not guaranteed. Distributions may be paid
from capital. Refer to important information 3 )
Multiple Currency Choices
•USD Class
•HKD Class
•AUD Hedged Class
•CAD Hedged Class
•NZD Hedged Class
•EUR Hedged Class
Best Asset Management Company, Asia & Hong Kong
Issued by The Asset, 2013 awards, reflecting performance of previous calendar year.
•GBP Hedged Class
•SGD Hedged Class
•RMB Hedged Class NEW Available from 7 April!
Why JPMorgan Multi Income Fund?
1.High income opportunities
The Fund is designed to maximise income opportunities from a broad range
of asset classes including high yield bonds, emerging market debt, convertible
bonds, global equities, emerging market equities and real estate investment
trusts (REITs), and aims to provide monthly distribution* to investors.
Solid Performance
Since launch in September 2011, the Fund
has achieved a total return of 27.1%^
+30 %
JPMorgan Multi Income (mth) - USD
*Dividend is not guaranteed. Distributions may be paid from capital. Refer to important information 3
2.Active asset allocation
+25
Our dynamic, unconstrained global approach gives investors access
to what we believe are the most attractive sources of income across
varying market conditions.
+20
3.A well-diversified portfolio
+15
To diversify risk, the Fund currently has more than 1,500 securities in
the portfolio. The average rating of our bond holdings is BB. The Fund’s
annualised volatility since launch is only 7.47%^.
+5
Historical Distribution+
Ex-dividend date
(d/m/y)
Distribution
per unit
+10
Ex-dividend
NAV
Annualised
yield+
USD Class
31/12/2013
30/1/2014
28/2/2014
USD 0.043
USD 0.043
USD 0.043
USD 11.34
USD 11.12
USD 11.39
4.65%
4.74%
4.63%
HKD Class
31/12/2013
30/1/2014
28/2/2014
HKD 0.043
HKD 0.043
HKD 0.043
HKD 11.28
HKD 11.07
HKD 11.34
4.67%
4.76%
4.65%
AUD Hedged Class
31/12/2013
30/1/2014
28/2/2014
AUD 0.0632
AUD 0.0631
AUD 0.0614
AUD 10.69
AUD 10.48
AUD 10.73
7.33%
7.47%
7.09%
CAD Hedged Class
31/12/2013
30/1/2014
28/2/2014
CAD 0.0490
CAD 0.0489
CAD 0.0478
CAD 10.73
CAD 10.52
CAD 10.79
5.62%
5.72%
5.45%
NZD Hedged Class
31/12/2013
30/1/2014
28/2/2014
NZD 0.0644
NZD 0.0645
NZD 0.0622
NZD 10.66
NZD 10.45
NZD 10.71
7.50%
7.66%
7.20%
EUR Hedged Class
31/12/2013
30/1/2014
28/2/2014
EUR 0.0395
EUR 0.0394
EUR 0.0391
EUR 10.3
EUR 10.1
EUR 10.35
4.70%
4.78%
4.63%
GBP Hedged Class
31/12/2013
30/1/2014
28/2/2014
GBP 0.0413
GBP 0.0415
GBP 0.0415
GBP 10.35
GBP 10.15
GBP 10.39
4.89%
5.02%
4.90%
SGD Hedged Class
31/12/2013
30/1/2014
28/2/2014
SGD 0.0393
SGD 0.0393
SGD 0.0393
SGD 10.35
SGD 10.15
SGD 10.39
4.65%
4.75%
4.63%
Source: J.P. Morgan Asset Management
+Dividend is not guaranteed. Positive distribution yield does not imply positive return. Annualised
yield = [(1+distribution per unit/ex-dividend NAV)^12]-1. The annualised dividend yield is
calculated based on the monthly dividend distribution with dividend reinvested, and may be
higher or lower than the actual annual dividend yield.
0
-5
9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 2/14 3/14
Cumulative performance (%)
3 months
1 year
Since launch
+1.7
+5.0
+27.1
Calendar year performance (%)
2011#
2012
2013
2014 YTD
+3.1
+15.0
+6.0
+1.2
^ Source:
J.P. Morgan Asset Management (USD (mth) class return from
inception on 9/9/2011 to 28/2/2014, NAV to NAV in USD with income
reinvested. Volatility based on monthly data.)
#
Since launch to end of year.
Market Allocation
Net Liquidity
1.4%
Emerging Markets
19.6%
North America
50.0%
Developed
Asia Pacific
7.4%
Tentative Distribution Schedule**
Record date
Ex-dividend date
Reinvestment/ Payment date
28/3/2014
31/3/2014
8/4/2014
29/4/2014
30/4/2014
12/5/2014
**Actual dividend distribution dates are subject to change without prior notice. Dividend is not
guranteed. Positive distribution does not imply positive return.
Developed Europe
21.5%
Source: J.P. Morgan Asset Management (As at 28/2/2014)
JPMorgan Multi Income Fund
Aims At Monthly Distribution* – Maximising income opportunities from a dynamic multi-asset strategy
Diversification – A well-diversified portfolio of over 1,500 securities
Multiple Currency Choices – USD, HKD, AUD Hedged, CAD Hedged, NZD Hedged, EUR Hedged,
GBP Hedged and SGD Hedged Classes available
*Dividend is not guaranteed. Distributions may be paid from capital. Refer to important information 3
Review
After January’s short sharp sell off, February was a much better month for the
fund. In truth, it is difficult to pinpoint one single catalyst for the generalised
rebound, but the most likely suspects are sentiment and positioning. At the
beginning of the year, the consensus was to be short duration in fixed income,
overweights in equities and high yield bonds and long US dollar. A modest knock
to sentiment in the shape of contagion effects from China’s slowing growth
momentum was enough to produce a broad market correction. But once it became
clear these contagion effects were exaggerated and that underlying fundamentals
were broadly unchanged, previous uptrends quickly resumed. Most equity and
credit markets bounced back strongly, more or less eliminating January’s declines.
Portfolio Characteristics
Bonds
A
0.3%
BBB
8.5%
37.4%
<BBB
Unrated
0.7%
Convertibles
Outlook
5.2%
0.0%
We remain in a relative sweet spot as far as most income-producing asset classes
are concerned. Both dividend and carry strategies emphasising yield have clear
attractions in a low growth, low interest rate, low volatility world. The commitment
of central banks to keep policy rates low—either through outright quantitative
easing or through forward guidance—is encouraging investors to seek yield in areas
where they have rarely ventured before. As long as growth remains positive, and
as long as issuer behaviour remains conservative, investing in lower quality credits
should not be unduly alarming.
10.0%
20.0%
Average Rating
BB
30.0%
40.0%
Average Duration
4.4 years
Average Maturity
(Bonds/Convertibles)
5.9 years / 6.5 years
Yield to Maturity
5.77%
50.0%
Equities
Dividend Yield
4.03%
Asset Allocation
Equities
Fixed Income
Developed Market Equities
North America
Developed Europe
Developed Asia Pacific
29.3%
10.9%
14.3%
4.1%
Emerging Market Equities
12.4%
REITs
5.3%
Preferreds / Perpetuals
6.0%
High Yield Bonds
31.7%
Emerging Market Debt
7.8%
Convertible Bonds
5.2%
European Fixed Income
1.0%
45.6%
53.0%
Net Liquidity 1.4%
Source: J.P. Morgan Asset Management (As at 28/2/2014)
Top 5 Bond Holdings
Sector
Russia 12.75% 24/06/28-Regs
Wells Fargo Vrn 7.98% Perp-Ser K
Government
Corporate
Country / Region
%
Russia
0.7
United States
0.6
Rep Of Indonesia 11.625% 03/19-Regs
Government
Indonesia
0.5
Romania 6.75% 07/02/22-Regs
Government
Romania
0.5
Fed Rep Of Brazil 11% 17/08/40
Government
Brazil
0.4
Country / Region
%
Source: J.P. Morgan Asset Management (As at 30/1/2014)
Top 5 Equity Holdings
Sector
Vodafone Group Plc
Microsoft Corporation
Royal Dutch Shell Plc
Telecommunication Services
Information Technology
Energy
United Kingdom
0.9
United States
0.8
United Kingdom
0.8
Swiss Re Ag
Financials
Switzerland
0.7
Unibail-Rodamco Se
Financials
France
0.6
Source: J.P. Morgan Asset Management (As at 30/1/2014)
JPMorgan Multi Income Fund
Quick Fund Facts
Investment Objective
To maximise the income return primarily through investing in a diversified portfolio of income producing equities, bonds
and other securities. In addition, the Fund aims to provide medium to long term moderate capital growth. The Manager will
seek to achieve these objectives by active asset allocation to, and within, different asset classes and geographies. The asset
classes include but are not limited to investment grade bonds, below investment grade bonds, high yield bonds, emerging
market bonds, convertible bonds, real estate investment trusts (“REITs”) and equities.
Benchmark
25% MSCI World Net (USD Hedged)
+ 15% MSCI Emerging Markets Net
+ 40% Barclays US Corporate High Yield 2% Issuer Capped Bond Total
+ 20% J.P. Morgan Emerging Markets Bond Index Global Total
Fund Managers
Michael Schoenhaut (New York), Jonathan Lowe (Hong Kong)
Fund Size
USD 4,096m
Current Charges
Initial: 5.0% of NAV
Redemption: 0%
Management Fee: 1.25% p.a.
Distribution Frequency
Expected Monthly (Dividend is not guaranteed. Distributions may be paid from capital. Refer to important information 3)
Dealing and Valuation
Daily
Financial Year End
30 September
Available Classes (mth)
USD Class
HKD Class
AUD Hedged
Class
CAD Hedged
Class
NZD Hedged
Class
EUR Hedged
Class
GBP Hedged
Class
SGD Hedged
Class
Launch Date
9/9/2011
9/9/2011
28/6/2012
28/6/2012
28/6/2012
10/9/2012
10/9/2012
10/9/2012
Denominated Currency
and NAV per unit
USD 11.39
HKD 11.34
AUD 10.73
CAD 10.79
NZD 10.71
EUR 10.35
GBP 10.39
SGD 10.39
SEDOL Code
B4ZHMT6
B670XG1
B7L0KK7
B60NWH1
B83YC64
B8P4YH7
B8P4YZ5
B8P4Z18
ISIN Code
HK 0000084514 HK 0000084522 HK 0000115300
HK 0000115318
HK 0000115326 HK 0000122462 HK 0000122470 HK 0000122488
Bloomberg Code
JPMIUSD HK
JPMICAD HK
JPMINZD HK
JPMIHKD HK
JPMIAUD HK
JPMMIEH HK
JPMMIGH HK
JPMMISH HK
Source: J.P. Morgan Asset Management (As at 28/2/2014)
The AUD/CAD/NZD/EUR/GBP/SGD Hedged Classes are not recommended for investors whose base currency of investment is not in the aforesaid currencies.
Investment involves risk. Past performance is not indicative of future performance. Please refer to the offering document(s) for details, including the risk factors before
investing. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.
MKT140122-D
For more information, please call us or visit our Investment Centre:
7th Floor, Chater House, 8 Connaught Road Central, Hong Kong
2265 1188

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