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JPMorgan Corporate Bond R6 CBFVX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 8.36  /  +0.12 %
  • Total Assets 269.1 Mil
  • Adj. Expense Ratio
    0.400%
  • Expense Ratio 0.400%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Large
  • Category Corporate Bond
  • Credit Quality / Interest Rate Sensitivity Medium/Moderate
  • Min. Initial Investment 15.0 Mil
  • Status Open
  • TTM Yield 4.56%
  • Effective Duration 6.95 years

USD | NAV as of Mar 28, 2024 | 1-Day Return as of Mar 28, 2024, 11:46 PM GMT+0

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Morningstar’s Analysis CBFVX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Corporate Bond R6'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 Corporate Bond R6's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the second-cheapest 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. 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 aims 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 Corporate Bond Fund earns an Above Average Process Pillar rating.

The largest contributor to 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Impressive 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 Corporate 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 underweight BB rated bonds in recent years. In the latest month, the strategy has also relatively underweighted BB rated bonds compared with Morningstar Category peers. Additionally, the fund has exhibited a sector bias away from government bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to government bonds than peers. Finally, during the past few years, the fund leaned towards debt with three- to five-year maturities. In this month, the strategy also leaned more towards debt with three- to five-year maturities compared with its peers.

This strategy's 12-month yield is 4.5%, higher than its average peer's 4.2%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 5.1%. Typically, higher yields come at the cost of higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher 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 BBB.

Rated on Published on

JPMorgan Corporate Bond Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Lisa Coleman’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they currently manage is 3.3 stars, demonstrating average risk-adjusted performance. Lisa Coleman has an experienced backdrop of support. The three listed managers boast 18 years of average listed portfolio management experience. The highest personal investment in the fund by any of its managers is between$ 100,000 and$ 500,000. That's on the low side--it would need to be more than$ 1 million for us to see the investment as sufficient to promote the strong alignment of their interests with the strategy's investors.

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 Retirement share class has held up nicely, holding even with its peers and outlasting the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over a 10-year period, this share class' 2.9% gain mirrored the category's average return. And it exceeded the return of the category benchmark, the Bloomberg Barclays U.S. Corporate Bond Index, by an annualized 37 basis points over the same period.

The risk-adjusted performance only continues to make a case for this fund. The share class had a higher Sharpe ratio, a measure of risk-adjusted return, than the index over the trailing 10-year period. These strong risk-adjusted results have not resulted in a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. Finally, 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.

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Fees compound over time and reduce returns, making it critical for investors to minimize expenses.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is in the second-cheapest quintile of its Morningstar Category. Its competitive expense ratio, paired with the fund’s People, Process, and Parent Pillars, suggests that this share class has high potential to deliver positive alpha relative to its category benchmark, explaining its Morningstar Medalist Rating of Bronze.

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Portfolio Holdings CBFVX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 6.4
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Prime Money Market Inst

4.73 11.8 Mil
Cash and Equivalents

Goldman Sachs Group, Inc. 6.484%

1.06 2.6 Mil
Corporate

Wells Fargo & Co. 5.557%

0.75 1.9 Mil
Corporate

Citigroup Inc. 3.887%

0.67 1.7 Mil
Corporate

Baxter International, Inc. 2.539%

0.65 1.6 Mil
Corporate

Verizon Communications Inc. 1.75%

0.62 1.6 Mil
Corporate

Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp. 6%

0.59 1.5 Mil
Corporate

Thames Water Utilities Finance PLC 4.375%

0.53 1.3 Mil
Corporate

Biogen Inc 2.25%

0.52 1.3 Mil
Corporate

Goldman Sachs Group, Inc. 2.64%

0.51 1.3 Mil
Corporate