JPMorgan Asset Management (JPMAM) is planning to terminate its five fixed maturity bond funds, effective 19 September 2014.
The five funds, which focus on emerging markets and high yield spaces, will be liquidated following a narrowing of their investment universes.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The company’s Emerging Markets Corporate Bond Portfolio Funds I, JPMorgan Funds – Emerging Markets Corporate Bond Portfolio II and III and JPMorgan Fund High Yield Bond Portfolio Funds I and II are among those to close.
The Luxembourg-domiciled funds seek to achieve a return profile comparable to holding a basket of bonds to maturity in addition to benefiting from the management of credit risk and portfolio diversification.
The liquidation of the funds has already been approved by the Commission de Surveillance du Secteur Financier.
The emerging markets corporate bond funds had been managed by Pierre-Yves Bareau, who heads emerging market debt at JPM, alongside portfolio manager Scott McKee, while High Yield Bond Portfolio had been managed by JPM’s global head of high yield, Robert Cook, aongside high yield portfolio manager Peter Aspbury.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA JP Morgan Asset Management spokesperson said: "Since their launch, market conditions have changed significantly.
"Specifically the consistent rally in bonds has increased prices and greatly incentivised issuers to call bonds prior to their maturity date, significantly limiting the availability of suitable (replacement) investments within the sub-funds’ respective target maturity universes.
"Given this narrowed investment universe, the portfolio managers believe they may no longer be able to meet the sub-funds’ investment objectives should these conditions persist. As a result, the decision was made to liquidate the sub-funds in the best interest of shareholders," he added.
