Income Investing’s historical payout rose to 4.9%¹ p.a. in September, and its portfolio yield climbed to 4.7%² p.a. Over the same month, the portfolio returned -2.5%³, bringing total annualised returns since inception to 2.8%³ p.a.
The figures moved in different directions because the portfolio’s returns come from two sources: regular interest payments from the underlying funds, and changes in the prices of the bonds they hold. In September, higher government bond yields and wider credit spreads pushed bond prices lower across sectors, with high-yield bonds and emerging market debt the main detractors from performance. While price moves like this can be sharp in the short term, they don’t directly affect the regular interest payments from the underlying funds.
Lower bond prices have also lifted the portfolio’s yield, which estimates the annual return the bonds in the underlying funds would deliver from current prices if held to maturity. As those bonds mature, the funds can reinvest proceeds at more attractive rates. Over longer periods, income has historically been the main driver of bond returns.
All performance figures are shown in SGD terms net of hedging costs and underlying fund fees, and include 100% trailer fee rebates that we pass directly to you. The only additional fee you’ll encounter is our StashAway management fee.
Market commentary by J.P. Morgan Asset Management
Global markets declined in September as the US Federal Reserve’s (Fed’s) tightening bias became the dominant narrative of the month. Resilient economic data, elevated energy prices and expectations of tighter monetary policy drove yields higher, weighing on valuations and contributing to increased market volatility.
Global government bond yields rose across major markets as stronger flash purchasing managers’ index (PMI) readings in the US and euro area reinforced expectations of further policy tightening. Fiscal concerns and heavy debt issuance added further pressure.
Following a firmer consumer price index (CPI) reading, the Fed raised interest rates by 25 basis points to a target range of 3.75% to 4.00% in September, its first increase since 2023. The European Central Bank also raised its key interest rates by 25 basis points, taking the deposit rate to 2.50%, while the Bank of Japan increased rates to a 31-year high of 1.25%. In contrast, the Bank of England held rates at 3.75%.
Within credit markets, corporate bonds declined as higher government bond yields and wider credit spreads weighed on returns. Investment-grade spreads widened modestly, while high-yield spreads widened more materially as risk sentiment weakened.
J.P. Morgan Asset Management maintains a measured, moderately pro-risk stance, noting that the global growth backdrop remains resilient even as regional divergence becomes increasingly apparent. However, elevated yields and a still-hawkish central bank environment may weigh on market sentiment.
Their base case is that policy rates will remain higher for longer. Stronger activity data, particularly in the US, points to upside risks to growth. At the same time, higher energy prices and sticky services inflation are likely to keep central banks cautious. They remain neutral on US duration despite more attractive yield levels, as resilient nominal growth and the potential for further Fed tightening argue for a balanced stance.
- Returns in SGD terms after fund-level fees and rebates but before the StashAway management fee. The latest return is as of 30 September 2026. Since inception of the portfolio on 15 July 2024. Past performance is not indicative of future performance.
- The historical payout is as of 30 September 2026. The historical payout shows the annualised monthly income payout generated by the distribution share class of the underlying funds in this portfolio. Note that past performance is not a guarantee of future performance. The figure displayed is net of all rebates and fund-level fees.
- The portfolio yield is calculated as the yield to maturity (YTM) of the underlying portfolio, adjusted for the USD/SGD hedging cost, fund-level fees, and rebates. The latest annualised yield is as of 30 September 2026 and may change depending on market conditions. Yields are not a guarantee of returns. Positive yield does not imply positive return.
For StashAway Income Investing portfolios that are powered by J.P. Morgan Asset Management, J.P. Morgan Asset Management provides StashAway with non-binding asset allocation guidance. You would be investing in an investment product which is established, offered and sold by StashAway and would not be investing in any J.P. Morgan fund. There is no contractual relationship between you and J.P. Morgan Asset Management or any of the J.P. Morgan Chase Parties, nor has J.P. Morgan Asset Management considered the suitability of the investment product's asset allocations against your individual needs, objectives, and risk tolerance.
J.P. Morgan Asset Management is not affiliated with StashAway and therefore makes no representations or warranties regarding the advisability of investing in any product or service offered by StashAway. This promotional material is not issued by J.P. Morgan Asset Management, any J.P. Morgan funds and fund parties, or other entities in the J.P. Morgan Chase & Co. group of companies. J.P. Morgan Asset Management and any J.P. Morgan Chase Parties have not reviewed the contents of the promotion material and accordingly take no responsibility for the accuracy of the contents or any liability for any statement or misstatement.
