Core as well as many flexible fixed income funds have increasingly faced challenges in recent years as it has become difficult to predict the interest rate cycle. Many factors such as elevated geopolitical risk, a crippling pandemic, rapid technological innovations and recurring supply-side economic issues have kept investors in a state of flux.
Traditional "core" allocations to government bonds have at best offered only modest income, while exposing investors to meaningful and unusual drawdowns. On the other hand, while flexible or multi-sector bond funds have generated higher yields, their volatility profile has often been higher than what clients would like to see. The widely held belief that risk assets and sovereign bond investments are inversely correlated has also been put to test in recent years. Investors are not able to assume that fixed income will act as a ballast in a diversified portfolio and interest rate exposure might not necessarily diversify credit exposure within that fixed income allocation.
A careful and well-constructed portfolio is a must in such an environment. The Jupiter Global Monthly Income Bond blends investments in high yield (HY) bonds with investment grade (IG) bonds from the developed markets. The idea is to tap the best of both worlds. The fund aims to deliver attractive monthly income while seeking to maintain lower volatility than traditional flexible bond funds.
What's our edge?
The new fund, launched in September 2026, has been built on the experience gained from running the UK-domiciled fund, which we have managed using a similar approach since late 2020.
Our approach is straightforward: to deliver income and capital growth, net of fees, greater than the fund’s Target Benchmark1 over rolling 3-year periods. The fund is designed to provide investors with a consistent income stream (or steady total return, for investors using accumulation shares) from a diversified global corporate credit allocation. Blending HY and IG bonds is designed to help smooth the drawdowns that many flexible bond funds have experienced.
Investment approach
That idea of generating attractive income while managing volatility drives everything we do, from the overall structure of the fund to individual credit selection. We structure the fund as a blend of investment grade and high yield with a moderate duration profile.
How do we generate returns?
Active and flexible allocation between IG and HY
Sector and regional allocation across global DM
Security selection
Active duration management
Investment grade and high yield credit behave differently through the cycle. Investment grade bonds are typically more sensitive to interest rates. High yield bonds are more sensitive to risk sentiment and the health of the corporate sector. Blending the two with a short duration bias can help to reduce the drawdown profile to holding either segment on its own.
For interest rate risk, we typically keep the fund’s duration within a 2–4 year range. That moderate duration profile, we believe, can help to reduce the sensitivity of the fund from the extreme swings in rate markets. It also means that returns are primarily driven by credit income rather than interest rate positioning.
Differently from other flexible bond funds, the Fund has a target benchmark, a blend of corporate developed markets low duration investment grade and high yield. We are not constrained by a benchmark, so it does not drive individual credit selection, but we do use it as a reference point for risk and duration positioning. We are active in asset allocation and duration, but within this well-defined framework. That means clients should have a clear idea of what to expect from us in terms of fund positioning.
Credit selection is underpinned by our credit research team, which screens a global developed market universe of roughly 4,000 names to build a final portfolio of around 100 to 150 different issuers.
We look for credits which fit the fund’s objective, such as predictable business models with sustainable capital structures and solid free cash flow generation. We avoid investing in more speculative credits where we do not believe the range of outcomes is tight enough.
Investment edge
We have a clear idea of what we are trying to deliver for clients: attractive and consistent income with low volatility. We believe the strength of the fund will stem from having the right top-down structure and staying true to it, using flexible asset allocation to lean into opportunities when we see them, and building a portfolio based on extensive credit research.
Jupiter has been investing in credit markets for decades and we have built a genuinely bottom-up, high-conviction credit culture. This Global Monthly Income Bond is a direct extension of that expertise.
Our edge is the combination of structure, discipline and credit research. That is what gives us confidence in our investment process and our ability to deliver on the fund’s investment objective over time.
In an increasingly unpredictable fixed income environment, the Jupiter Global Monthly Income Bond seeks to offer investors attractive, consistent income alongside low volatility. By combining investment grade and high yield bonds, maintaining moderate duration and applying flexible asset allocation, the fund is, we believe, well equipped to navigate changing market conditions while trying to fulfil its investment objective.
Fund specific risks
- Interest rate risk - The fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates, e.g. the value of a bond tends to decrease when interest rates rise.
- Pricing risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Contingent convertible bonds - The fund may invest in contingent convertible bonds. These instruments may experience material losses based on certain trigger events. Specifically, these triggers may result in a partial or total loss of value, or the investments may be converted into equity, both of which are likely to entail significant losses.
- Credit risk - The issuer of a bond or a similar investment within the fund may not pay income or repay capital to the fund when due.
- Derivative risk - The fund may use derivatives to generate returns and/or to reduce costs and the overall risk of the fund. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
- Counterparty default risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the fund's assets.
- Sub investment grade bonds - The fund may invest a significant portion of its assets in securities which are those rated below investment grade by a credit rating agency. They are considered to have a greater risk of loss of capital or failing to meet their income payment obligations than higher rated investment grade bonds.
- Charges from capital - Some or all of the fund’s charges are taken from capital. Should there not be sufficient capital growth in the fund this may cause capital erosion.
For a more detailed explanation of risks, please refer to the "Risk Factors" section of the scheme particulars.
Footnote
1The target benchmark consists of two segments: 1) 60% weight allocated to ‘ICE BofA 1-5 Year Global Corporate Index’ excluding emerging market countries, and 2) 40% weight allocated to ‘ICE BofA Global High Yield Index’ excluding emerging market countries and with a 2% issuer cap.
The value of active minds: independent thinking
A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.
Important information
Marketing communication. This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
The views expressed are those of the author(s) at the time of preparation, are not necessarily those of Jupiter as a whole and may be subject to change. An investment is designed to be held over a longer-term. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given. Quoted yields are not a guide or guarantee of the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. No part of this document may be reproduced in any manner without the prior permission of Jupiter.
The Company is a UCITS fund incorporated as a Société Anonyme in Luxembourg and organised as a Société d’Investissement à Capital Variable (SICAV).
Please refer to the latest Prospectus and to the Key Investor Information Document (KIID) (for investors based in the UK) and Key Information Document (KID) (for investors based in the EU) before making any investment decision. Particularly to the sub-fund’s investment objective, characteristics including those related to ESG (if applicable), and additional risk factors.
These documents are available from www.jupiteram.com or from www.eifs.lu/jupiteram or from:
France: CACEIS Bank France (Centralising Agent), 1/3 Place Valhubert, 75013 Paris, France.
Italy: Allfunds Bank, S.A.U., Milan Branch, Via Bocchetto 6, 20123 Milano, Italy. CACEIS Bank, Italy Branch Via Piazza Cavour 2,20121 Milano, Italy. Société Générale Securities Services, Via Benigno Crespi 19, 20159 Milano, Italy. The sub-fund has been registered with the Commissione Nazionale per le Società e la Borsa (CONSOB) for the offer in Italy to retail investors.
Luxembourg: the Company’s registered office: 31 Z.A. Bourmicht L-8070 Bertrange, Grand Duchy of Luxembourg.
Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109 Alcobendas, Madrid, Spain. For the purposes of distribution in Spain, the Company is registered with the Spanish Securities Markets Commission – Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 1253, where complete information, including a copy of the marketing memorandum, is available from the Company authorised distributors. Subscriptions should be made through a locally authorised distributor. The net asset value is available on www.jupiteram.com.
Switzerland: The representative in Switzerland is FIRST INDEPENDENT FUND SERVICES LTD., Feldeggstrasse 12, CH-8008 Zurich. The paying agent in Switzerland is NPB New Private Bank Ltd., Limmatquai 1, CH-8001 Zurich. The prospectus, the key information documents, the articles of association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland.
United Kingdom: Jupiter Asset Management Limited (the Investment Manager and UK Facilities Agent), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom, authorised and regulated by the Financial Conduct Authority.
Information is also available on how subscriptions and redemptions can be made, and arrangements related to investor rights and complaints handling.
Unless otherwise specified in this document, The Bank of New York Mellon SA/NV, Luxembourg Branch (the Company’s Depositary and Administrator) is responsible for processing subscription, repurchase and redemption orders and making other payments to Shareholders. The Bank of New York Mellon SA/NV, Luxembourg Branch, Luxembourg Branch,2-4,Rue Eugène Ruppert, L-2453 Luxembourg, email Distributors: JupiterLUXdistributor@bny.com, email Investors: JupiterLUXinvestor@bny.com
An investment is an acquisition of shares in the fund/sub-fund, not in the fund/sub-fund’s underlying assets.
The fund is subject to product governance rules under MiFID II and is intended only for specified target market categories.
This information is only directed at persons residing in jurisdictions where the fund/sub-fund is authorised for distribution or where no such authorisation is required. Not all share classes are authorised for distribution in all jurisdictions. Jupiter may terminate marketing arrangements.
Issued by Jupiter Asset Management International S.A. (the Management Company and Facilities Agent), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier.
For US Offshore investors
The Fund has not been registered under the United States Investment Company Act of 1940, as amended, nor the United States Securities Act of 1933, as amended. None of the shares may be offered or sold, directly or indirectly in the United States or to any US Person, unless the securities are registered under the Act, or an exemption from the registration requirements of the Act is available. A US Person is defined as (a) any individual who is a citizen or resident of the United States for federal income tax purposes; (b) a corporation, partnership or other entity created or organized under the laws of or existing in the United States; (c) an estate or trust the income of which is subject to United States federal income tax regardless of whether such income is effectively connected with a United States trade or business.