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JPMorgan Short Duration Bond I HLLVX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.78  /  0.00
  • Total Assets 8.7 Bil
  • Adj. Expense Ratio
    0.340%
  • Expense Ratio 0.340%
  • Distribution Fee Level Below Average
  • Share Class Type Institutional
  • Category Short-Term Bond
  • Credit Quality / Interest Rate Sensitivity High/Limited
  • Min. Initial Investment 1.0 Mil
  • Status Open
  • TTM Yield 3.57%
  • Effective Duration 1.87 years

USD | NAV as of Jul 17, 2024 | 1-Day Return as of Jul 17, 2024, 10:16 PM GMT+0

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Morningstar’s Analysis HLLVX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Short Duration Bond I's Morningstar Medalist Rating of Silver.

Our research team assigns Silver ratings to strategies that they have a high conviction will outperform the relevant index, or most peers, over a market cycle on a risk-adjusted basis.

A sound investment process and strong management team underpin JPMorgan Short Duration Bond I's Morningstar Medalist Rating of Silver.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.

The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in corporate bonds and debt with over 30-year maturities compared with category peers. The management team's large personal investment in the strategy helps it earn an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Rated on Published on

Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, repeatable execution.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Short Duration Bond Fund earns an Above Average Process Pillar rating.

The leading factor in 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 55% 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 noteworthy 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 number of months that the management team has been running this vehicle together.

Compared with other funds in the Short-Term 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 category average, the managers have been underweight corporate bonds in recent years. In the latest month, the strategy has also relatively underweighted corporate debt compared with Morningstar Category peers. Additionally, there's been a bias away from debt with longer than 30-year maturities over the past few years. Similarly, in recent months, the strategy also had less exposure to debt with longer than 30-year maturities than peers. Finally, during the past few years, the fund leaned meaningfully away from BBB rated bonds. In recent months, the strategy also had less exposure to BBB rated bonds compared to its peers.

This strategy has a modest 3.5% 12-month yield, lower than its average peers' 3.9%. Plus, its 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return) sits at 4.3%. Typically, a lower yield comes with the benefit of less 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 A.

Rated on Published on

JPMorgan Short Duration Bond Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

The number one contributor to the rating is its parent firm's five-year success ratio of 55%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The stability of talent across its parent firm also strengthens the rating. The firm's asset-weighted manager tenure of 16 years demonstrates its ability to retain portfolio managers. Lastly, the rating is limited by the turnover of its management team. The fund last saw a manager change five years ago, which suggests that it could do more to retain its portfolio managers.

Toby Maczka, the longest-tenured manager, has seven years of listed portfolio management experience. Despite having a small team, the two listed managers boast 21 years of listed portfolio management experience. At least one member of the team has invested $1 million or more of their own capital in the fund, which helps align their interests with the strategy's investors.

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 Institutional 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' 1.5% gain mirrored the category's average return. And it outperformed the category index, the Bloomberg Barclays U.S. Aggregate Government/ Credit 1-3 Year Index, by an annualized 19 basis points over the same period.

The risk-adjusted performance only continues to make a case for this fund. The share class outstripped the index with a higher Sharpe ratio, a measure of risk-adjusted return, 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. However, the share class proved itself ineffective as it was unable to generate 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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Low-cost investments routinely outperform high-cost investments.

null Morningstar Manager Research

Morningstar Manager Research

Price

Thus, assessing cost is a critical step in any investment evaluation. This share class sits in the cheapest quintile of its Morningstar Category. Its affordable expense ratio, paired with the fund’s People, Process, and Parent Pillars, suggests that this share class is well-positioned to generate positive alpha compared with its category benchmark, leading to its Morningstar Medalist Rating of Silver.

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Portfolio Holdings HLLVX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 23.6
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

United States Treasury Notes 4%

4.75 394.0 Mil
Government

United States Treasury Notes 4.5%

4.42 366.6 Mil
Government

JPMorgan US Government MMkt Instl

3.91 324.4 Mil
Cash and Equivalents

United States Treasury Notes 4.25%

3.45 286.0 Mil
Government

United States Treasury Notes 4.125%

3.03 251.5 Mil
Government

United States Treasury Notes 4.5%

2.06 170.4 Mil
Government

United States Treasury Notes 4.5%

1.92 159.1 Mil
Government

United States Treasury Notes 4.625%

1.61 133.1 Mil
Government

United States Treasury Notes 4.625%

1.44 119.7 Mil
Government

United States Treasury Bills

1.11 92.1 Mil
Government