The funds covered the emerging market debt and high-yield bond spaces and will close on 19 September after their liquidation was approved by the Commission de Surveillance du Secteur Financier.
The company’s Emerging Markets Corporate Bond Portfolio Funds I, JPMorgan Funds – Emerging Markets Corporate Bond Portfolio II and III and JPMorgan Fund High Yield Bond Portfolio Funds I and II are among those to close.
JP Morgan said the funds were aimed at investors looking to achieve a return profile comparable to holding a basket of bonds to maturity while also benefiting from the management of credit risk and portfolio diversification.
In a statement, the company said: “Since the launch of the funds, market conditions have changed significantly.
“Specifically, the consistent rally in bonds has increased prices and greatly incentivised issuers to call bonds prior to their maturity date, significantly limiting the availability of suitable investments within the sub-funds’ respective target maturity universes.”
It added that given this narrowed investment universe, the funds’ portfolio managers believe they may no longer be able to meet the sub-funds’ investment objectives, resulting in the decision to liquidate the sub-funds in the best interest of shareholders.
Last week, JP Morgan Asset Management announced that it was to introduce a renminbi hedged share class for its ASEAN Fund.
The new RMB share class for the JPM ASEAN Equity Fund will be available from 21 July with a minimum investment amount of RMB16,000 ($2500, £1500).
The fund house said it was encouraged by the demand for RMB products after it added one for its JPMorgan Asian Total Return Bond Fund in June, having at the time indicated it would add RMB share classes for other funds.
