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JPM Cautious Total Return Fund

• A lower risk fund that aims to preserve an investor’s initial investment, although this is not guaranteed.
• Aims for a positive return in excess of Libor (the interest rate at which UK banks lend to each other) over the medium term.
• Its flexible approach allows it to take on more risk when we believe conditions are favourable, and to focus on preserving capital in more uncertain times.
• Managed by experts in multi-asset investing.

The fund can change where it invests depending on market conditions

Points to consider

• Investors in this fund should want to stay invested for at least three to five years
• This multi-asset fund invests in bonds, convertible bonds, equities (which may include investment in emerging markets and smaller companies), cash and cash equivalents with a bias towards bonds
• Bond prices can fluctuate significantly depending not only on the global economic and interest rate conditions but also on the general credit market environment and the creditworthiness of the issuer
• Equity investment is subject to specific risks relating to the performance of the individual companies held and the market's perception of their performance
• Equities are also subject to systematic risks such as general economic conditions, inflation, interest rates, foreign exchange rates and industry sector risks. In general terms, equities tend to be more volatile than bonds
• The investment policy of the fund permits the use of derivatives and/or forward transactions for investment purposes, potentially increasing the volatility and therefore risk of the fund
• Total return funds seek to provide a positive return but this is not guaranteed and they should not be used as a substitute for traditional liquidity funds or cash accounts. As the priority of these funds is to provide positive returns, they will not perform in line with stock markets

Fund management

Talib Sheikh is a senior portfolio manager in the Global Multi-Asset Group (GMAG), based in London, with primary responsibility for managing total return portfolios.

Neill Nuttall is Chief Investment Officer and head of GMAG with particular responsibility for global tactical asset allocation, total return and convertible bond portfolios.