JPM moves Multi-Asset Income into Cautious Managed sector

J.P. Morgan has moved its £68m Multi-Asset Income fund from the IMA Specialist sector into Cautious Managed in the view the peer group better reflects its investment profile.

Managers Michael Schoenhaut, Talib Sheikh and Neill Nuttall have also introduced emerging market income stocks to the portfolio as well as a covered call strategy to boost income.

The fund is yielding 4.9% and has returned 10.6% over the year to 15 July, ranking it 33 out of 152 funds in the sector, according to Morningstar.

The average return from Cautious Managed funds over the same period was 8.6%. Olivia Mayell, client portfolio manager said: “As the fund is unconstrained, it allows us to invest where we see the very best opportunities for income and to potentially avoid underperforming assets.

"We believe this gives the fund the greatest likelihood of maintaining an attractive level of income through varying market conditions and continuing to produce strong returns from a balanced portfolio of assets.

“The fund has a lower volatility level than many other income funds and it fits well alongside others in the Cautious Managed sector. In this sector we can now be compared against our closest peers.

“With interest rates still low in the UK, the decision to introduce emerging market income stocks to the portfolio as well as a covered call strategy has helped to enhance income without compromising volatility. Emerging market income stocks are not only among the highest yielding across the globe, they also offer attractive growth potential.”