Boutique fund manager Alpha Fund Managers has awarded an investment mandate to JP Morgan Asset Management to offer investors yield opportunities outside traditional fixed income sectors.
Alpha Fund Managers has announced in a statement it has added JP Morgan Asset Management’s Global Bond Opportunities Fund to its bond portfolio.
The fund aims to provide exposure to 15 fixed income sectors across more than 50 countries with a volatility target between 5 and 10 per cent, according to a statement.
“One of the key reasons we selected the JPMorgan Global Bond Opportunities Fund was the fact it is free from rigid constraints or bias to any region or sector,” said Alpha Fund Manager portfolio manager Julien Brodie.
“It was important to us that the portfolio managers could flexibly shift from adopting a conservative allocation in uncertain periods and then dynamically move to higher-risk opportunities when conditions improve.”
JP Morgan Asset Management head of Australia funds David Hallifax said the fund allowed for flexibility such that if a fund manager did not favour a particular sector or region, “they simply won’t own it”.
“The key to 2018 will be central banks and the extent to which they continue to support bond markets through ultra-accommodative policies,” Mr Hallifax said.
“We believe that this approach will be important in this new fixed income environment.”