With pension funds seeking smarter ways to generate income to match liabilities, there is increased pressure on bond fund managers to generate yields without exposing their clients to intolerable risk.

Like many of its peers, JP Morgan Asset Management has seen a sharp rise in fixed-income assets under management. The assets managed by chief investment officer Nick Gartside and boss Bob Michele rose from $1.8 billion at the end of December 2011 to $4.4 billion at the end of December 2013.