JPMorgan Emerging Markets Debt Fund earns an Average Process Pillar rating.
The main driver of the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.3 stars. The parent firm's five-year risk-adjusted success ratio of 57% also bolsters the rating. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. Lastly, the process is limited by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the process has struggled over that period.
Compared with other funds in the Emerging Markets Bond Morningstar Category, this fund has been consistently sensitive to interest-rate changes over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Relative to the category average, the managers have been meaningfully underweight A rated bonds in recent years. Different from its historical appetite, however, the portfolio's credit quality was in line with the Morningstar Category peers in recent months. Additionally, there's been a notable bias towards debt with 20- to 30-year maturities over the past few years. In the most recent month, however, the fund's exposure to debt with 20- to 30-year maturities was in line with the Morningstar Category average. Finally, during the past few years, the fund leaned away from corporate bonds. In recent months, the strategy also had less exposure to corporate debt compared to its peers.
This strategy's 12-month yield is 5.7%, which mirrors its average peer. In addition, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 6.4%. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB.