Veteran contributors with access to well-resourced research and risk cohorts shrewdly position JPMorgan Multi-Asset Income to do what the strategy’s name suggests. JPMorgan Income Builder (mutual fund) receives renewed Morningstar Analyst Ratings of Neutral, Bronze, and Silver for its C, A, and R6 share classes, respectively, and a downgrade of its institutional shares to Bronze from Silver, driven by category context. JPMorgan Multi Income (Hong Kong Unit Trust) receives renewed Neutrals and Bronzes across share classes. JPMorgan Global Income (SICAV) receives renewed ratings that range from Neutral to Silver. JPMorgan Multi-Asset Income (OEIC) receives renewed Bronzes and Silvers across share classes.
The portfolio managers are experienced and collaborative. Michael Schoenhaut (who has been with the strategy since its first vehicle, the mutual fund, debuted in mid-2007), Eric Bernbaum (appointed to the roster in 2014), and Gary Herbert (an early 2021 addition) serve as portfolio managers across all four vehicles. Jeff Geller and Leon Goldfeld serve as a fourth manager on the mutual fund and the Hong Kong Unit Trust, respectively. Though Schoenhaut and Bernbaum are responsible for the dynamic asset allocation, they delegate managing the underlying sleeves (22 as of February 2023) to seasoned experts from across the firm’s many specialized investment cohorts.
This is a highly flexible mandate. Up to 100% of the portfolio may be fixed income, though below-investment-grade debt won’t exceed 70%. Equities may reach 60%, and the team may hold up to 25% in a combination of convertible and preferred securities. There are no limits to regional exposures, though currency hedges differ depending on the regional vehicle. Mainstay sleeves include developed-markets equity (U.S. and international), U.S. high yield, and emerging-markets debt and equity.
Across all four strategy vehicles discussed, from their respective inceptions through 2022, each has kept pace or outperformed its typical Morningstar Category peer in more than half of its relevant calendar years. Still, this is an income-focused offering, and relative to peers, the portfolio can court more volatility in pursuit of that aim. But for a patient investor willing to endure rough patches, longer-term prospects remain compelling.