JPM Asset Management has restructured Citywire AA-rated Lisa Coleman's global credit fund to allow for increased flexibility and a total return investment approach, Citywire has learned.
In a letter to shareholders dated September 16 2015, the asset manager unveiled planned changes to the JPM Global Credit Bond fund which will become effective on October 26 2015.
The asset manager said the proposals would increase the diversification of investments and the fund will be more flexible to sector allocations and interest rate sensitivity depending on market conditions.
This approach will also use a variety of techniques to help provide some downside protection during periods of credit market disruption.
In addition to the changes to the investment style, the fund will now be called the JPMorgan Funds – Flexible Credit Fund. Also, the fund's risk profile and its benchmark have been changed, the new benchmark being the Barclays Multiverse Corporate Index.
The fund is managed by Coleman, who has run the fund since its launch in 2002, and Andreas Michalitsianos, who started managing the fund in January 2014. As of August 31 2015 it had $184 million in assets under management.
The largest country allocation in the fund is the United States at 58.5% followed by Luxembourg at 10.6%. In terms of sectors, financial institutions make up 31.4% followed by communications at 14.2%. 11.4% of the fund is held in cash.
The JPM Global Credit Bond fund has returned 8.7% in US dollar terms over the three years to the end of September 2015. Its Citywire-assigned benchmark, the Citi WGBI TR USD, fell 6.3% over the same timeframe.