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Fixed Income Triangle

J.P. MORGAN ASSET MANAGEMENT’S                                          

While investors have historically been known to diversify their equity risk, given the current  low interest rate environment, it’s just as important for investors to be diversifying fixed income investments. It’s important investors:
        - Think strategically about blending core bond holdings with those from the complements and        
          extended sectors
        - Consider a client’s goals, risk tolerance and time horizons
        - Adjust allocations to reflect your market and interest rate outlook


Every stage and component of the triangle can contribute to your portfolio’s risk adjusted returns, namely:
         - Reduce volatility
         - Increase return on volatility
         - Enhance yield

The Fixed Income Triangle – all you need to know in 2 minutes



An explanation of the Fixed Income Triangle


The performance of individual fixed income sectors can be volatile as different bond market sectors, structures and maturities respond differently to changing interest rates. This is why diversification can help lower portfolio volatility and reduce the impact of rising rates in addition to other risks. When considering the right mix of investments, it is important to think strategically about blending your core holdings with those from the complements and extended sectors. The Fixed Income Triangle is an effective tool that provides a framework towards better results and helping investors achieve their goals.


Did you know?

That the Australian bond market makes up less than 5% of the world’s bond markets?

 Download the Fixed Income Brochure

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Find out more about J.P. Morgan Asset Management’s Fixed Income Funds:
˙JPMorgan Global Bond Fund
˙JPMorgan Global Strategic Bond Fund
˙JPMorgan Global Bond Opportunities Fund