NBI Unconstrained Fixed Income Fund

Challenge traditional investment strategies

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Investment strategy

Markets are under constant evolution and traditional investing strategies are proving to be ineffective under certain circumstances. Challenge the status quo with the NBI Unconstrained Fixed Income Fund and consider a strategy that invests broadly across global fixed income markets and is not constrained by benchmark-specific guidelines.

Key differentiators

Traditional active fixed income strategies seek to outperform their respective benchmarks by making tactical calls on both duration and sector positioning. However, margins to manoeuver are generally limited.
Unconstrained fixed income strategies have greater flexibility when it comes to selecting and allocating securities, sectors and countries as they are not subject to restrictions related to a 'traditional' benchmark.
The portfolio's duration can also be adjusted with greater flexibility than traditional fixed income strategies.
Overall, an unconstrained approach can better react to market fluctuations. It also provides greater flexibility in generating positive absolute returns while managing risk in changing global markets.

Why invest in this Fund?

Vast investment flexibility

Investing broadly across global fixed income markets without the traditional benchmark-specific guidelines.
High conviction ideas and attempts to achieve absolute risk-adjusted returns in a variety of environments.
Integrated risk management.

Uncorrelated sources of return

Better diversification, downside protection and returns stabilization by investing in uncorrelated assets to traditional risk assets.
Derivatives and option-based strategies are used to generate long-term returns and protect the portfolio.

More information

How to position an unconstrained fixed income fund in a portfolio?

The unconstrained approach allows the management team to avoid areas of the market posing greater downside risk and be more responsive to changes in markets. The portfolio is built by maintaining a stable, liquid assets base combined with a dynamic set of risk-mitigating and return-enhancing trades.

Core strategy

An unconstrained fixed income fund can be added to an existing core allocation, as a complement to traditional fixed income funds, due to its global exposure and potential for lower interest rate sensitivity.

Diversification within fixed income allocation
Alternative to passive fixed income strategies
Hedge against rising rates

Alternative strategy

An unconstrained fixed income fund can be positioned as an alternative allocation due to its potential lower correlation to traditional stocks and bonds.

Aim to generate alpha regardless of market conditions using broader opportunity set
Targeting absolute return with focus on capital preservation
Liquidity

What are the benefits of investing in an unconstrained fixed income strategy?

Traditional fixed income may not be as compelling in a rising rate environment. With yields at historical lows and the unclear timing of rate hikes, investors need to consider investing in non-traditional strategies with greater flexibility to manoeuver in an increasingly complex market environment.

Broader opportunity set and range of potential alpha sources
Benchmark-agnostic: not constrained by a “traditional” fixed income benchmark
More flexibility to take advantage of the best opportunities and adjust the portfolio to enhance returns and mitigate risk
More leeway in terms of duration management which may help to attenuate interest rate risk, a distinctive advantage in a rising rate environment
Low correlation to traditional and spread-oriented bond and equity indices
Good complement to traditional fixed income and alternative strategies
Consistent, attractive risk-adjusted returns in all market environments
Integrated risk management process: focus on preserving capital and maximizing risk-adjusted returns

Documents

Learn more about the NBI Unconstrained Fixed Income Fund Investor | Advisor

Discover J.P. Morgan Asset Management

About the portfolio manager's firm

J.P. Morgan Asset Management is one of the largest asset and wealth managers in the world. As the asset management business of JPMorgan Chase & Co. (“JPMC”) and its affiliates, J.P. Morgan Asset Management* (“JPMAM”) is a leading asset manager for individuals, advisors and institutions. Their investment professionals are located around the world, providing strategies that span the full spectrum of asset classes.

Based in New York, JPMAM has offices in more than 20 countries and teams network across 15 cities worldwide, connected through investment hubs in London, New York, Tokyo and Hong Kong.

Assets under management of JPMC: US$3 trillion
Assets under management of JPMAM: US$1.7 trillion, including $US500 billion in fixed income securities
JPMAM investment professionals: 82 investment teams and over 1,100 investment professionals, with 280 across all segments of the global fixed income universe

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Fund codes

Initial sales charge	Low sales charge	Deferred sales charge	F Series	Initial sales charge	Low sales charge	Deferred sales charge	F5 Series
Advisor Series			F Series	T5 Series			F5 Series
NBC405	NBC605	NBC505	NBC705	NBC5405	NBC5605	NBC5505	NBC5705

Advisor Series	Initial sales charge	NBC405
	Low sales charge	NBC605
	Deferred sales charge	NBC505
F Series		NBC705
T5 Series	Initial sales charge	NBC5405
	Low sales charge	NBC5605
	Deferred sales charge	NBC5505
F5 Series		NBC5705

Learn more about series*

Learn about our other investment solutions

NBI Global Tactical Bond Fund

The Fund is made up of high-quality global bonds, which provide more opportunities to generate added value because of their low correlation with other classes of fixed income assets.

See the FBI Global Tactical Bond Fund

NBI Strategic U.S. Income and Growth Fund

A core holding for clients looking for income. This conservative approach to accessing equities provides reduced interest sensitivity compared to conventional bonds.

See the NBI Strategic U.S. Income and Growth Fund

See all our investment solutions

Questions?

Contact your NBI Sales Representative via email or by phone at 1-877-463-7627

Legal notes

The NBI Unconstrained Fixed Income Fund (the “Fund”) is offered by National Bank Investments Inc., a wholly owned subsidiary of National Bank of Canada. National Bank Trust Inc. acts as portfolio manager for the Fund and J.P. Morgan Investment Management Inc. (JPMIM), an indirect wholly owned subsidiary of JPMorgan Chase & Co. (JPMC), acts as portfolio sub-advisor for the Fund. J.P. Morgan Asset Management (JPMAM) is the brand name for the asset management business of JPMC and its affiliates.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the Fund before investing. The Fund’s securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. The Fund is not guaranteed, its values change frequently and past performance may not be repeated.