Transcription
Annual Report & Financial StatementsJPMorgan Fund ICVC31 January 2022
ContentsAuthorised Corporate Director’s (ACD) ReportInvestment Adviser’s Report for the year ending 31 January 20223–89Statement of the Authorised Corporate Director10Statement and Report of the Depositary to the Shareholders of JPMorgan Fund ICVC (“the Company”)11Independent Auditors’ Report to the Shareholders of JPMorgan Fund ICVC12–13Policies and Risks14–15JPM Asia Growth Fund16–28JPM Asia Pacific Equity Fund29–41JPM Climate Change Solutions Fund42–52JPM Emerging Europe Equity Fund53–65JPM Emerging Markets Fund66–80JPM Emerging Markets Income Fund81–97JPM Emerging Markets Sustainable Equity Fund98–109JPM Europe Dynamic (ex-UK) Fund110–125JPM Europe (ex-UK) Research Enhanced Index Equity Fund126–139JPM Europe (ex-UK) Sustainable Equity Fund140–153JPM Global Corporate Bond Fund154–170JPM Global Equity Income Fund171–193JPM Global (ex-UK) Bond Fund194–209JPM Global High Yield Bond Fund210–237JPM Global Macro Fund238–255JPM Global Macro Opportunities Fund256–269JPM Global Research Enhanced Index Equity Fund270–287JPM Global Sustainable Equity Fund288–299JPM Global Unconstrained Equity Fund300–313JPM Japan Fund314–328JPM Multi-Asset Income Fund329–371JPM Multi-Manager Growth Fund372–382JPM Natural Resources Fund383–395JPM Sterling Corporate Bond Fund396–413JPM UK Dynamic Fund414–428JPM UK Equity Core Fund429–445JPM UK Equity Growth Fund446–459JPM UK Equity Index Fund460–476JPM UK Equity Value Fund477–494JPM UK Government Bond Fund495–504JPM UK Higher Income Fund505–511JPM UK Sustainable Equity Fund512–524 1
JPM Unconstrained Bond Fund525–556JPM US Equity Income Fund557–577JPM US Research Enhanced Index Equity Fund578–589JPM US Select Fund590–604JPM US Sustainable Equity Fund605–615This material should not be relied on as including sufficient information to support an investment decision.The opinions and views expressed in this document are those held by J.P. Morgan Asset Management as at 17 June 2022, which are subject tochange and are not to be taken as or construed as investment advice.For up-to-date performance information please contact J.P. Morgan Asset Management using the numbers shown on the back of this document.You should remember that past performance is not a guide to the future. The price of investments and the income from them may fall as well asrise and investors may not get back the full amount invested. The level of tax benefits and liabilities will depend on individual circumstances andmay change in the future.The investment objective of a Fund may allow some flexibility in terms of portfolio composition.Funds that invest predominantly in a single market, asset class or sector may be subject to greater volatility than those funds with a morediversified portfolio.The information in this booklet is based on our understanding of law, regulation and HM Revenue & Customs practice as at 17 June 2022.2
Authorised Corporate Director’s (ACD) ReportBoard of Directors of JPMorgan Funds Limited (“JPMFL”), the Authorised Corporate Director (“ACD”) ofJPMorgan Fund ICVC as at 31 January 2022ChairKate JonesIndependent Non-Executive Director ofthe ACD since 14 June 2019 and Chair since16 June 2020.Ms Jones’ career spans senior investmentleadership and Board roles in the financialservices industry including the PensionProtection Fund, BlackRock, Schrodersand M&G.Ms Jones began her career as a portfoliomanager at Prudential M&G before playing aninstrumental role in the growth of BlackRock’sSolutions business where she built and ledthe portfolio management function withresponsibility for over 300bn of assets.Ms Jones then moved to Schroders whereshe sponsored their largest ever changeprogramme to allow the organisation to growassets under management whilst managingcosts.Ms Jones has been a Non-Executive Directorof the Pension Protection Fund since2016, becoming Chair in 2021 and is also aDirector of Blackfinch Spring VCT, focused ontechnology enabled firms.Working with senior executives in multiplesectors across the UK., Ms Jones is also theco-founder of executive coaching business& become.Ms Jones has a degree in MathematicalEconomics from the University of Birminghamand was a CFA charter holder.DirectorsAndrew LewisExecutive Director. A member of the ACD since5 November 2018 and Chief Executive Officersince 26 October 2020.Mr Lewis is the Head of UK Platform and ClientService for J.P. Morgan Asset Managementin Europe.Mr Lewis joined J.P. Morgan Asset Managementin 2011. He filled a variety of roles supportingUK and European Funds businesses, includingleading Funds Client Service for Europebefore taking up his current role. His groupprovides Client Service, Transfer Agency andFund Administration for UK Funds includingthe Life assurance business, supports Fundsdistribution channels in UK, and providesBoard Management services to Fund andTrust Boards. He is the CEO of JPMorganFunds Limited and JPMorgan Trustee andAdministration Services Limited, a Directorof JPMorgan Life Limited and a number ofJPMorgan subsidiaries. He additionally leads anumber of business control forums for EMEA,including Conflicts of Interest and TreatingCustomers Fairly.Mr Lewis joined the British Army aged 18,leaving as a Colonel in 2011. He has a BA fromCranfield University and holds the InvestmentManagement Certificate.Ruston SmithIndependent Non-Executive Director of theACD since 28 December 2016.Mr Smith has over 35 years’ experience inthe pension fund and investment industry,complemented by broader commercialexperience.He has held senior corporate positionswith responsibility for strategy, investment,governance, communication and operationsfor a wide range of UK and internationaldefined benefit and defined contributionschemes and provident funds, also acting asa Trustee and Chairman.His experience includes over a decade as theGroup Pensions and Insurable Risk Director atTesco, where the award winning UK schemehas over 200,000 employed members. Hewas also the CEO of Tesco Pension Investment,their FCA approved in house investmentmanager, with around 20bn of assets undermanagement.Mr Smith has a breadth of experience whichhas included responsibility for executivereward and benefits, employee relations, HRsystems, payroll, global mobility and health &wellness.Before joining Tesco, Mr Smith was a Directorand Company Secretary at PZ Cussons, wherehe was also responsible for their grouppensions, property, legal and insurance.Mr Smith is the Non-Executive Chairman ofTesco Pension Trustees Limited and TescoPension Investment Ltd, Trustee Director ofTesco Ireland Trustee Limited, Non-ExecutiveChairman of JPMorgan Asset ManagementInternational Limited and JPMorgan AssetManagement (UK) Limited, Non-ExecutiveChair of PTL Limited, Non-Executive Chairmanof Smart Pension Ltd, Chair of the Fundingand Investment Committee and IndependentTrustee of the BAE and Airbus Pension Fund,Chair of the Advisory Board of AMX, NonExecutive Chair of the Pensions ManagementInstitute and Chairman of GroceryAid, thecharity for the Grocery Industry.Mr Smith has an MBA (with distinction), is aFellow of the Pensions Management Instituteand a Fellow of the Institute of Management.3
Authorised Corporate Director’s (ACD) Report – continuedO’Brien BennettExecutive Director. A member of the ACDsince 21 May 2020.Nick BloxhamExecutive Director. A member of the ACDsince 1 June 2020.Mr Bennett, Managing Director, is a ProjectExecutive for J.P. Morgan Asset Managementand has over 25 years of experience in theimplementation of global strategic andregulatory programmes.Mr Bloxham is the UK Financial controller forJ.P. Morgan Asset Management.Mr Bennett has managed strategic reengineering projects across the US, TransferAgency platform implementations in the UKand Luxembourg, business platform builds inBrazil, re-structuring of AML/KYC processingglobally, MiFID II, PRIIPs, GDPR and now leadsthe LIBOR transition and Asset Management’sChina JV integration. He was previously headof Luxembourg Operations and Head of EMEAProduct Development and Product DeliveryServices.Mr Bennett started his career in stockbrokingin 1977 and joined J.P. Morgan AssetManagement in 1985. He moved toLuxembourg in 2004.Mr Bloxham joined J.P. Morgan AssetManagement in 2008. For 3 years he wasthe financial controller for J.P. Morgan AssetManagement (UK) Ltd, latterly also havingresponsibility for the financial sections ofthe JPMAM International ICAAP. He coveredfinancial MIS for all European-based productteams for 2 years, before becoming GlobalCFO for AM Global Equities in 2014. He movedto his current role as UK Financial Controllerin November 2019. He leads a group of 14,which provides financial regulatory reportingand control for 4 regulated entities, as wellas the regulated group; corporate financialreporting; legal entity Board reporting andfinancial statement preparation. His grouphas oversight and control of the JPMAMInternational Group and individual entities’balance sheet activities, including capital,seed, Mandatory investor Plan (‘MIP’) andFX hedging; regulatory capital management;liquidity management and seed/MIPinvestments. The role includes liaison withexternal auditors; external professional firmsand bodies; J.P. Morgan Boards and externalregulators.Mr Bloxham additionally provides supportto the European Senior Financial Officer.He is deputy Chair of the EMEA Capital andLiquidity Committee and the EMEA CorporateTax meeting, and is a member of the ICARAsteering group and EMEA Seed CapitalCommittee.Mr Bloxham is Director on a number ofcompanies within AM EMEA and is the Chairof the Board of J.P. Morgan Trustee andAdministration Services Limited. As part ofthe latter role, he attends the EMEA Audit Riskand Compliance Committee.Mr Bloxham has an MA (Cantab) fromCambridge University and an MSc fromImperial College, London. He is a qualifiedChartered Accountant (CA).4BackgroundJPMorgan Funds Limited (“JPMFL”) is theAuthorised Corporate Director (“ACD”) ofJPMorgan Fund ICVC (the “Company”) and isthe sole Director of JPMorgan Fund ICVC (the“Board”). The Board is pleased to present theAnnual Report and Financial Statements forthe year ended 31 January 2022.Authorised StatusJPMorgan Fund ICVC is an Open-EndedInvestment Company with variable capital,authorised under Regulation 12 of theOEIC Regulations by the Financial ConductAuthority.The Company was launched as a UCITSScheme on 14 May 2001 and acts as anumbrella company comprising 37 subfunds. Its registration number is IC00005and its registered address is 60 VictoriaEmbankment, London EC4Y 0JP.Structure & LiabilitiesThe assets of the sub-fund are treatedas separate from those of any other subfund and are invested in accordance withthe investment objective and investmentpolicies applicable to that sub-fund. Detailsof the investment objective, the policies forachieving these objectives, the performancerecord and a review of the investmentactivities for each of the sub-funds can befound in this report.The Report and Financial Statements includesfor each sub-fund the: Investment objective and policy Risk profile Fund review Fund outlook Fund statistics Portfolio statementShareholders are not liable for the debts ofthe Company. Shareholders are not liable tomake any further payment to the Companyafter the purchase of their shares is paid for.
Authorised Corporate Director’s (ACD) Report – continuedRole and Responsibility of theBoardJPMFL is authorised and regulated by theFCA and its principle activity is investmentmanagement. The ACD is incorporatedunder and governed by the Companies Act2006. With respect to the Annual reportand financial statements of the Company,it is also required to comply with theCollective Investment Schemes Sourcebookissued by the FCA, applicable accountingstandards and also with the latest Statementof Recommended Practice issued by TheInvestment Association.The matters reserved for the Board includedetermination of each sub-fund’s investmentobjective and policies, investment restrictionsand powers, amendments to the Prospectus,reviewing and approving key investmentand financial data, including the interim andAnnual Report and financial statements,as well as the appointment of and review ofthe services provided by the depositary andauditor.Prior to each meeting the Board receivesdetailed and timely information allowing themto prepare for the items under discussionduring the meeting. For each quarterlymeeting the Board requests, and receives,reports from, amongst others, the investmentmanagers, risk management, compliance, aswell as proposals for changes to existing subfunds or proposals to launch new ones asappropriate. Senior representatives of eachof these functions attend Board meetings byinvitation to enable the Board to questionthe reports presented to them. In additionthe Board reviews all service providers on anannual basis.The Board takes decisions in the interests ofthe Company and its shareholders as a wholeand has procedures in place to manage anyconflict of interest between personal interestsof the Directors of JPMFL and those of theCompany and its shareholders. JPMFL and itsaffiliates provide a variety of different servicesto the Company and receives compensationfor these services. JPMFL and its affiliatestherefore need to balance the desire to becompensated for these services with therequirement to act in the best interest of theCompany. JPMFL and its affiliates also faceconflicts of interest where these servicesare provided to other funds or clients, and,from time to time, make decisions that differfrom and/or negatively impact those made onbehalf of the Company.Board CompositionJPMFL is chaired by Ms Jones, and consistsof three Executive Directors and one otherIndependent Non-Executive Director. AllBoard meetings require a quorum of twoDirectors to be in attendance.Induction and TrainingAll new Directors of JPMFL will receive a fullinduction incorporating relevant informationregarding the Company and its duties andresponsibilities as the ACD of the Company.In addition, JPMFL takes active steps to keepup to date with developments relevant to theCompany.Board EvaluationThe Board carries out a biennial review of itsperformance.Board Meetings and CommitteesThe Board meets quarterly but if necessaryadditional meetings will be arranged.There were nine JPMorgan Fund ICVC Boardmeetings held during the year. Four of thesewere quarterly Board meetings where,amongst other matters, the agenda includedthose items highlighted under the sectionabove called ‘Role and Responsibility of theBoard’.Corporate GovernanceThe Board is responsible for ensuring that ahigh level of corporate governance is met andconsiders that the Company has compliedwith the best practices in the UK Fundsindustry.Assessment of Value ReportIn response to the FCA rules regarding theassessment of fund value for shareholders, theBoard published its first Assessment of ValueReport in August 2020. The Report providesa review of costs relative to performance andother important dimensions of value, such asthe quality and depth of services providedto shareholders. The Board’s Assessmentof Value Report for 2021 is available m/emea/gb/en/regulator dfProxy Voting PolicyJPMFL delegates responsibility for proxyvoting to the Investment Adviser. TheInvestment Adviser manages the votingrights of the shares entrusted in a prudentand diligent manner, based exclusively on thereasonable judgement of what will best servethe financial interests of clients.So far as is practicable, the InvestmentAdviser will vote at all of the meetings calledby companies in which they are invested.A copy of the proxy voting policy is availablefrom the Company’s registered officeupon request or on the website: /regional/en/communications/l u x- c o m m u n i c a t i o n /Co r p o ra t e % 2 es.pdf5
Authorised Corporate Director’s (ACD) Report – continuedUCITS Remuneration disclosuresJPMorgan Funds Limited (the “ManagementCompany”) is the authorised manager ofJPMorgan Fund ICVC (the “Company”) andis part of the J.P. Morgan Chase & Co. groupof companies. In this section, the terms “J.P.Morgan” or “Firm” refer to that group, andeach of the entities in that group globally,unless otherwise specified.This section of the interim report has beenprepared in accordance with the Undertakingsfor Collective Investment in TransferableSecurities (the “UCITS Directive”) and the‘Guidelines on sound remuneration policies’issued by the European Securities andMarkets Authority under the UCITS Directives.The information in this section is in respectof the most recent complete remunerationperiod (“Performance Year”) as at thereporting date.This section has also been prepared inaccordance with the relevant provisions ofthe Financial Conduct Authority Handbook(COLL 4.5.7).Remuneration Policy (unaudited)A summary of the Remuneration Policyapplying to the Management Company(the “Remuneration Policy”) can be foundathttps://am.jpmorgan.com/gb/en/assetm a n a g e m e n t /g i m / p e r/ l e g a l /e m e a remuneration-policy (the “RemunerationPolicy Statement”). This RemunerationPolicy Statement includes details of howremuneration and benefits are calculated,including the financial and non-financialcriteria used to evaluate performance, theresponsibilities and composition of the Firm’sCompensation and Management DevelopmentCommittee, and the measures adopted toavoid or manage conflicts of interest. A copyof this policy can be requested free of chargefrom the Management Company.The Remuneration Policy applies to allemployees of the Management Company,including individuals whose professionalactivities may have a material impact on therisk profile of the Management Company orthe UCITS Funds it manages (“UCITS IdentifiedStaff”). The UCITS Identified Staff includemembers of the Board of the ManagementCompany (the “Board”), senior management,the heads of relevant Control Functions, andholders of other key functions. Individualsare notified of their identification and theimplications of this status on at least anannual basis.6The Board reviews and adopts theRemuneration Policy on an annual basis,and oversees its implementation, includingthe classification of UCITS Identified Staff.The Board last reviewed and adopted theRemuneration Policy that applied for the2021 Performance Year in June 2021 whichwas updated to reflect the establishment ofthe JPMAMIL Remuneration Committee andwas satisfied with its implementation.Quantitative DisclosuresThe table below provides an overview of theaggregate total remuneration paid to staffof the Management Company in respect ofthe 2021 Performance Year and the numberof beneficiaries. These figures include theremuneration of all staff of JP Morgan AssetManagement (UK) Ltd (the relevant employingentity) and the number of beneficiaries, bothapportioned to the Management Company onan AUM weighted basis.Due to the Firm’s structure, the informationneeded to provide a further breakdown ofremuneration attributable to the Companyis not readily available and would not berelevant or reliable. However, for context,the Management Company managed 32Alternative Investment Funds (with 4 subfunds) and 2 UCITS (with 42 sub-funds) asat 31 December 2021, with a combined AUMas at that date of 23,429m and 24,834mrespectively.All staff ( ’000s)Fixed remuneration23,244Variable remuneration16,065Total remuneration39,309Number of beneficiaries153The aggregate 2021 total remuneration paidto UCITS Identified Staff was USD 104,326k,of which USD 6,570k relates to SeniorManagement and USD 97,756k relates toother Identified Staff1.1For 2021, the Identified Staff disclosures includes employees ofcompanies to which portfolio management has been formallydelegated, in line with the latest ESMA guidance.Directors and Officers Indemnity InsuranceThe Company’s Articles of Incorporationindemnify the Directors against expensesreasonably incurred in connection with anyclaim against them arising in the course oftheir duties or responsibilities as long as theyhave not acted fraudulently or dishonestly. Toprotect shareholders against any such claim,the Board has taken out Directors and OfficersIndemnity Insurance which indemnifies theACD against certain liabilities arising in thecourse of their duties and responsibilitiesbut does not cover against any fraudulent ordishonest actions on their part.AuditorPricewaterhouseCoopers LLP, has beenthe Company’s Auditor since January 2010.The Board reviewed the services of PwC in2016 and decided that, subject to any otherinfluencing factor, they should continue to beappointed as Auditor for a further 8 years.Statement of Cross HoldingsThere are no holdings of the sub-funds ofJPMorgan Fund ICVC (FUND) by other subfunds of the Company.Privacy PolicyThe ACD complies with a privacy policythat has been issued by J.P. Morgan AssetManagement which can be accessed atwww.jpmorgan.com/emea-privacy-policy.Change to the composition ofthe Board of JPMFLStephen Pond resigned from the Boardwith effect from the close of business on7 June 2021. The Board would like to takethis opportunity to record its thanks toStephen for his service to the Company andits shareholders.
Authorised Corporate Director’s (ACD) Report – continuedTermination of Sub-FundsChanges to the ProspectusDuring the period the following sub-fundswere terminated and accounts were madeavailable to shareholders on 9 February 2021.Published on 31 March 2021 Update of rates of dilution adjustment(31 March 2021) JPM Global Financials Fund Update of past(31 March 2021) JPM Global Property Securities Fund JPM UK Equity Blue Chip Fund JPM UK Equity & Bond Income Fund JPM US FundGoing ConcernThe financial statements of all of the Fundshave been prepared on a going concernbasis, with the exception of JPM EmergingEurope Equity Fund and JPM UK HigherIncome Fund. JPM UK Higher Income Fundhas ceased trading and it is the AuthorisedCorporate Director’s intention to wind up thisFund. Accordingly, the going concern basisof preparation is no longer appropriate forthis Fund and the financial statements forthis Fund has been prepared on a basis otherthan going concern. No adjustments wererequired in this Fund to reduce assets to theirrealisable values, or to provide for liabilitiesarising from this decision. The AuthorisedCorporate Director (“ACD”) will bear thecosts relating to any such liabilities arising.Adjustments have been made to reclassifyfixed assets and long term liabilities ascurrent assets and liabilities.Dealing in JPM Emerging Europe Equity Fundwas suspended on 28 February 2022. The ACDhas decided that based on this Fund beingsuspended for the foreseeable future, thegoing concern basis is not appropriate at thispoint in time. No adjustments were made inthis Fund to reduce assets to their realisablevalues, or to provide for liabilities arising fromthis decision. Adjustments have been made toreclassify fixed assets as non-current assets.performancedataPublished on 30 June 2021 Updates to reflect launch of Funds on30 June: JPM Climate Change Solutions FundPublished on 1 December 2021 Update Investment Approach for thefollowing funds: JPM Europe Fund JPM Europe Dynamic (ex-UK) Fund JPM Europe (ex-UK) Research EnhancedIndex Equity Fund JPM Global Equity Income Fund JPM Global Research Enhanced IndexEquity Fund JPM Global Unconstrained Equity Fund JPM Global Sustainable Equity Fund JPM Natural Resources Fund JPM UK Sustainable Equity Fund JPM UK Dynamic FundPublished on 8 July 2021 Clarifications to investment policies for theFunds: JPM Global Macro Fund JPM Global Macro Opportunities Fund JPM UK Equity Core Fund JPM UK Equity Growth Fund JPM UK Equity Value Fund JPM Asia Growth Fund: disclosure of 20%max exposure to China A sharesPublished on 4 October 2021 Update of rates of dilution adjustment JPM Emerging Markets Fund: disclosure of20% max exposure to China A shares Update in relation to availability of LiquidityEstimates JPM Emerging Markets Income Fund:disclosure of 20% max exposure to ChinaA shares Additional updates in relation to Brexit Addition of Kenya to Eligible SecuritiesMarkets list Introduction of C2 Share Classes Update to Investing in the Funds Update to Directors of the ACD Inclusion of newly approved fund JPM USSustainable Equity Fund (not launched)Published on 12 October 2021 Update to JPM US Sustainable Equity Fundfor C2 share classes JPM Global Unconstrained Equity Fund:disclosure of concentration in a limitednumber of securities JPM Global Corporate Bond Fund: increaseof maximum below investment gradeexposure to 20% and increase of maximumcontingent convertible bonds exposureto 10% Update to C2 Share Class Eligibility andwaiver JPM Unconstrained Bond Fund: Changeof benchmark including reference inInvestment Objective, disclosure ofmaximum exposure of 20% to securitiesissued by supranational organisations.Published on 20 October 2021 Update to reflect launch of JPM USSustainable Equity Fund on 20 October JPM Global Macro Fund: change ofbenchmark and disclosure of 10% maximumexposure to onshore China securitiesPublished on 15 November 2021 Addition of C2 share classes to various funds JPM Global Macro Opportunities Fund:change of benchmark and disclosure of10% maximum exposure to onshore ChinaSecurities including China A Shares Addition of Thematic Risk Update to A share class eligibility Update to reflect G share classes beingclosed to new investors7
Authorised Corporate Director’s (ACD) Report – continuedPublished on 6 December 2021 Restructure of the JPM Europe Fund toJPM Europe (ex-UK) Sustainable Equity FundPublished on 31 January 2022 JPM Emerging Markets Sustainable EquityFund, removal of unlaunched G share classesas there is no intention to launch this shareclass in the future JPM Global Corporate Bond Fund, update tobenchmark name to reflect rebranding ofbenchmark provider JPM Global High Yield Bond Fund, reductionof fees Risk Descriptions, inclusion of SustainabilityRisk Investing in the Funds, amendments toreflect on line account service, amendmentto regular savings plan disclosure, updatesto dilution adjustment rates and inclusion ofnew website link Company Business Operations,administrative updatesManagement and AdministrationAuthorised Corporate DirectorJPMorgan Funds Limited3 Lochside View, Edinburgh Park,Edinburgh, EH12 9DH(Authorised and regulated by the Financial Conduct Authority)Custodian and Bankers:JPMorgan Chase Bank, N.A. London Branch25 Bank Street, Canary Wharf, London, E14 5JP(Authorised and regulated by the Prudential RegulationAuthority and by the Financial Conduct Authority)DepositaryNatWest Trustee and Depositary ServicesLimited, 250 Bishopsgate, London, EC2M 4AA(Authorised and regulated by the Prudential RegulationAuthority and by the Financial Conduct Authority)Independent AuditorsPricewaterhouseCoopers LLP141 Bothwell Street, Glasgow, G2 7EQInvestment AdviserJPMorgan Asset Management (UK) Limited25 Bank Street, Canary Wharf,London, E14 5JP(Authorised and regulated by the Financial Conduct Authority)RegistrarSS&C Financial Services Europe LimitedSS&C House,Saint Nicholas Lane Basildon,Essex, SS15 5FS(Authorised and regulated by the Financial Conduct Authority)By order of the Authorised Corporate Director,Andrew LewisDirectorJPMorgan Funds Limited17 June 2022Nick BloxhamDirectorJPMorgan Funds Limited17 June 20228Authorised Corporate Director’s (ACD) Report
Investment Adviser’s Report for the year ending31 January 2022Market reviewOverall, developed markets equity largelygenerated positive returns and outperformedbond during the period. However, financialmarkets were buffeted in the second halfof the period by a pandemic resurgence,accelerating inflation, rising interest rates inemerging markets and in the final months byRussia’s impending invasion of Ukraine.For the twelve month period, the BloombergBarclays Multiverse Index returned -3.4%and the MSCI World Index returned 19.8% (allperformance in GBP terms, 31 January 2022,source: J.P. Morgan Asset Management).Within equity markets, US stocksoutperformed for most of the period amidhistorically low interest rates, recordcorporate profits and a boom in US consumerwealth. Equity markets in the EU and UK andother developed markets also generatedpositive returns but faced headwinds from aresurgence in Covid-19 infections as well asrising energy prices.Emerging markets equity surged in the firsthalf of the period amid the global economicrebound from 2020, but largely slumpedin the second quarter. In China, slowerthan-expected economic growth, investorconcerns about real estate sector debt levelsand stricter regulatory control over largetechnology companies dented on equityprices, which in turn weighed down emergingmarkets equity across Asia. Elsewhere inemerging markets, soaring inflation and astrengthening US dollar led central banks toraise interest rates.Global bond markets were mixed for theperiod. Investment grade bonds and sovereigndebt in both developed and emerging marketsfell, while high yield bonds and lower ratedcorporate bonds generally provided positivereturns. As the global economic reboundand supply-chain bottlenecks fuelled droveaccelerating inflation through 2021, leadingcentral banks in developed markets beganto signal their willing to raise interest ratesin 2022, which put further pressure on bondsmarkets. The Bank of England raised interestrates in January 2022, and then proceeded toraise rates again in the following two months.Despite an increase in infections andhospitalisations, and the reimposition ofsocial restrictions, due to the emergence o
JPM Global Corporate Bond Fund 154-170 JPM Global Equity Income Fund 171-193 JPM Global (ex-UK) Bond Fund 194-209 . JPM Global Unconstrained Equity Fund 300-313 JPM Japan Fund 314-328 JPM Multi-Asset Income Fund 329-371 JPM Multi-Manager Growth Fund 372-382 JPM Natural Resources Fund 383-395 JPM Sterling Corporate Bond Fund .
