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JPMorgan Unconstrained Debt A JSIAX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 9.64  /  −0.10 %
  • Total Assets 1.0 Bil
  • Adj. Expense Ratio
    0.900%
  • Expense Ratio 0.900%
  • Distribution Fee Level Low
  • Share Class Type Front Load
  • Category Nontraditional Bond
  • Credit Quality / Interest Rate Sensitivity Medium/Limited
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 3.62%
  • Effective Duration 3.07 years

USD | NAV as of Mar 18, 2024 | 1-Day Return as of Mar 18, 2024, 11:06 PM GMT+0

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Morningstar’s Analysis JSIAX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Unconstrained Debt A's Morningstar Medalist Rating of Bronze.

Our research team assigns Bronze ratings to strategies they’re confident will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

A strong management team and sound investment process underpin JPMorgan Unconstrained Debt A's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a sizable cost advantage over competitors, priced within the second-lowest fee quintile among peers.

The strategy’s management team earns an Above Average People Pillar rating. The strategy's investment approach stands out and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight government bonds and B rated bonds compared with category peers. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Rated on Published on

Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Unconstrained Debt Fund earns an Above Average Process Pillar rating.

The main driver of the rating is the parent firm's five-year risk-adjusted success ratio of 57%. 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. Strong risk-adjusted performance also bolsters the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

Compared with other funds in the Nontraditional Bond Morningstar Category, this fund, historically, hews closely to peers' credit and interest-rate sensitivity 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. Compared with the average strategy in the category, the managers have been an overweight government bonds in recent years. Different from its historical appetite, however, the strategy has also relatively underweighted government bonds compared with Morningstar Category peers in the most recent month. Additionally, there's been an underallocation from B rated bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to B rated bonds than peers. Finally, during the past few years, the fund leaned towards debt with five- to seven-year maturities. In recent months, however, the strategy had less exposure to debt with five- to seven-year maturities compared to its peers.

This strategy has a modest 3.5% 12-month yield, lower than its average peers' 4.9%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 4.4%. A lower yield tends to indicate lower credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been lower than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB.

Rated on Published on

JPMorgan Unconstrained Debt Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

The team is backed by Robert Michele, the longest-tenured manager on the strategy, who provides over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they manage is 3.8 stars, demonstrating above-average risk-adjusted performance. Robert Michele is supported by an experienced team, being able to draw on four additional listed managers, who average over 30 years of listed portfolio management experience. As a team, they manage four investment vehicles together, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha in aggregate. With at least one manager investing$ 1 million or more in this offering, investors can have some assurance that the team's interests are aligned with theirs.

Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Rated on Published on

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.

Associate Director Emory Zink

Emory Zink

Associate Director

Parent

Above Average

As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various global cohorts and diverse asset classes, the firm has more tightly integrated its capabilities in recent years, notably through the development of proprietary analytical and risk systems. Investment teams are robustly staffed and helmed by seasoned contributors. The firm’s strategies tend to produce reliable portfolios, and several flagship offerings are Morningstar Medalists. Manager incentives align with fundholders'; compensation reflects longer-term performance factors, and portfolio managers invest in the firm’s strategies as part of their compensation plans.

The firm’s funds tend to be well-priced, but they aren’t as competitive as many highly regarded peers of similar scale. Recent product launches include thematic and single-country strategies, both of which carry the potential for volatile performance and flows, along with misuse by investors. The firm remains intrepid when it comes to developing an environmental, social, and governance-focused framework and continues to move into other areas such as direct indexing through its 55iP acquisition and China through its joint venture, but these complicated initiatives take time to assess any real and lasting effect.

Rated on Published on

This strategy’s A share class has lapped both its peers and the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over a 10-year period, this share class outpaced the category's average return by 46 basis points annualized. And it also outperformed the category index, the ICE BofA US 3 Month Deposit OR CM Index, by an annualized 1.1 percentage points over the same period.

When adjusting for risk, the fund is less favorable. The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the index over the trailing 10-year period. The strategy also took on elevated risk, contributing to the bad outcome for investors. Specifically, the fund had a higher standard deviation, 3.2%, compared with the benchmark, 0.5%. However, the share class proved itself effective by generating positive alpha, over the same 10-year period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

Published on

It is imperative to evaluate fees, which compound over time and reduce returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the second-cheapest quintile of its Morningstar Category. Its competitive fee, taken together with the fund’s People, Process, and Parent Pillars, indicates that this share class is well-positioned to generate positive alpha compared with its category benchmark, leading to its Morningstar Medalist Rating of Bronze.

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Portfolio Holdings JSIAX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 18.8
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Prime Money Market Inst

8.53 100.6 Mil
Cash and Equivalents

Federal National Mortgage Association 4.5%

6.44 76.0 Mil
Securitized

Government National Mortgage Association 5%

4.38 51.6 Mil
Securitized

Federal National Mortgage Association 5.5%

1.99 23.5 Mil
Securitized

Invesco Senior Loan ETF

1.65 19.4 Mil

Cash

1.40 16.5 Mil
Cash and Equivalents

Mexico (United Mexican States) 7.75%

0.97 11.4 Mil
Government

Federal National Mortgage Association 4%

0.90 10.6 Mil
Securitized

Secretaria Tesouro Nacional 10%

0.78 9.2 Mil
Government

United Kingdom of Great Britain and Northern Ireland 3.75%

0.70 8.2 Mil
Government