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JPMorgan Short Duration Bond I HLLVX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.68  /  −0.09 %
  • Total Assets 7.8 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
  • Min. Initial Investment 1.0 Mil
  • Status Open
  • TTM Yield 3.25%
  • Effective Duration 1.96 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 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 lowest fee quintile among peers.

The strategy's investment process inspires confidence and earns 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 evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

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

The most important 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Noteworthy risk-adjusted performance also contributes to the process. 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, such as 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 Short-Term 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. Compared with the average strategy in the category, the managers have been underweight corporate debt 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's 12-month yield is 3.2%, lower than its average peers' 3.7%. It also has a 4.1% 30-day SEC yield (a measure similar to yield-to-maturity). While a lower yield may deliver less income, it also 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 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 57%. 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 influences the rating. The firm's asset-weighted manager tenure of 19 years demonstrates its ability to retain portfolio managers. Lastly, the rating is limited by the instability of its management team. The fund last saw a manager change four years ago, which suggests that it could do more to retain its portfolio managers.

The strategy is backed by Toby Maczka, the longest-tenured manager, who has been a listed portfolio manager for six years. The strategies they currently manage have an average Morningstar Rating of 2.9 stars, demonstrating average risk-adjusted performance compared with category peers. Toby Maczka has an experienced listed co-manager. Together, they average 21 years of listed portfolio management experience. 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.

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' long-term performance is mixed depending on the yardstick used.

null Morningstar Manager Research

Morningstar Manager Research

Performance

It has provided similar returns compared with peers, but superior returns compared with the category benchmark. This share class mirrored the category average's 1.6% return over the eight-year period and its 1.4% return over a 10-year period. However, it found more success when compared with the category index, Bloomberg Barclays U.S. Aggregate Government/ Credit 1-3 Year Index, where it led by an annualized 18 basis points over the same 10-year period.

When adjusting for risk, this fund is competitive. The share class had a higher Sharpe ratio, a measure of risk-adjusted return, than the index over the trailing 10-year period. Often, higher returns are associated with more risk. However, this strategy stayed in line with the benchmark's 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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By minimizing expenses, investors can maximize their expected returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the cheapest quintile of its Morningstar Category. Its low expense ratio, paired with the fund’s People, Process, and Parent Pillars, suggests that this share class is well-positioned to generate positive alpha relative to 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 15.9
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan US Government MMkt Instl

5.02 353.0 Mil
Cash and Equivalents

United States Treasury Bills

3.76 264.7 Mil
Government

United States Treasury Notes 4.5%

2.83 199.2 Mil
Government

United States Treasury Notes 2.25%

2.33 164.1 Mil
Government

United States Treasury Notes 4.625%

2.19 153.7 Mil
Government

United States Treasury Notes 3.75%

2.12 149.0 Mil
Government

United States Treasury Notes 4%

1.77 124.2 Mil
Government

United States Treasury Notes 4.625%

1.73 122.0 Mil
Government

United States Treasury Notes 4.25%

1.49 104.9 Mil
Government

United States Treasury Notes 4.375%

1.35 95.1 Mil
Government