Skip to Content

JPMorgan California Tax Free Bond C JCBCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.25  /  0.00
  • Total Assets 306.8 Mil
  • Adj. Expense Ratio
    1.050%
  • Expense Ratio 1.050%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Muni California Intermediate
  • Credit Quality / Interest Rate Sensitivity High/Moderate
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 1.97%
  • Effective Duration 4.97 years

USD | NAV as of Mar 02, 2024 | 1-Day Return as of Mar 02, 2024, 12:00 AM GMT+0

unlocked

Morningstar’s Analysis JCBCX

Medalist rating as of .

JPMorgan California Tax Free Bond C boasts strong People and Process Pillar ratings, but other weaknesses hold this strategy's Morningstar Medalist Rating at Neutral.

Our research team assigns Neutral ratings to strategies they’re not confident will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

JPMorgan California Tax Free Bond C boasts strong People and Process Pillar ratings, but other weaknesses hold this strategy's Morningstar Medalist Rating at Neutral.

null Morningstar Manager Research

Morningstar Manager Research

Summary

Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the most expensive quintile among peers.

The longest-tenured portfolio manager's extensive experience drives the strategy's Above Average People Pillar rating. The strategy's effective investment approach 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 A rated bonds and has a considerable overweight in debt with 10- to 15-year maturities compared with category peers. 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 investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan California Tax Free Bond Fund earns an Above Average Process Pillar rating.

The primary 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. The parent firm's impressive risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also influences the rating. Lastly, the process is limited by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year information ratio calculated relative to the category index, which suggests that the process has struggled over that period.

Compared with other funds in the Muni California Intermediate Morningstar Category, this fund takes on lower credit risk. But in terms of long-term interest-rate sensitivity, it hews closely to its average peer 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 average strategy in the category, the managers have been underweight A rated bonds in recent years. In the latest month, the strategy has also relatively underweighted A rated bonds compared with Morningstar Category peers. Additionally, there's been a notable bias towards debt with 10- to 15-year maturities over the past few years. Compared with category peers, the strategy had more exposure to debt with 10- to 15-year maturities in the most recent month. Finally, during the past few years, the fund leaned away from corporate bonds. Nevertheless, the fund's corporate bonds exposure was in line with peers in the latest month.

This strategy has a modest 1.9% 12-month yield, lower than its average peers' 2.6%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 2.1%. A lower yield tends to indicate lower credit risk. The portfolio has a higher average surveyed credit quality of AA, compared with the typical peers' A, and it holds no non-investment-grade assets, similar to its peers' average. Strategies that take on less credit risk can often shoulder more-adverse market conditions.

Rated on Published on

JPMorgan California Tax Free Bond Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Michelle V. Hallam, the longest-tenured manager on the strategy, provides strong guidance, offering 20 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.5 stars, indicating that their risk-adjusted returns have underperformed the category average. The team boasts an experienced corps of listed portfolio managers, with three others supporting Michelle V. Hallam. Together, they average 15 years of listed portfolio management experience. As a team, they manage two investment vehicles together, with mixed prospects. The asset-weighted average Morningstar Medalist Rating across the strategies is Neutral. This means, in aggregate, they are not positioned to deliver positive alpha. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

Note: The People Pillar rating is indirectly assigned by an analyst. At least one of the managers on this fund manages a different product rated by an analyst. The analyst-assigned People Pillar rating(s) for these managers are combined with algorithmic scores for any non-covered 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

Performance-wise, this strategy’s C share class, with returns reported in US Dollar, has demonstrated it is ineffective over a wide time frame, with inferior returns and risk-adjusted returns compared with peers.

null Morningstar Manager Research

Morningstar Manager Research

Performance

The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the category index, Bloomberg Barclays MF California Intermediate Municipal Bond Index, over the trailing 10-year period. However, this strategy hewed close to the benchmark's standard deviation. Finally, the share class proved itself ineffective as it was unable to generate alpha, over the same period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

Even when excluding risk, the strategy still did not come out ahead. The share class underperformed the category index by an annualized 97 basis points over the past 10 years. It also underperformed its peers by an annualized 77 basis points for the same 10-year period.

Published on

Returns vary from period to period, but expenses are always deducted.

null Morningstar Manager Research

Morningstar Manager Research

Price

It is good practice to weigh them heavily in any investment evaluation. This share class lands in the costliest quintile of its Morningstar Category. Its unattractive expense ratio, in conjunction with the fund’s People, Process, and Parent Pillars, suggests that this share class could struggle to produce positive alpha versus its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

Published on

Portfolio Holdings JCBCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 12.5
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

4.02 12.4 Mil
Cash and Equivalents

CALIFORNIA ST 4%

2.02 6.2 Mil
municipal

LOS ANGELES CALIF DEPT WTR & PWR REV 5%

1.90 5.9 Mil
municipal

CALIFORNIA HEALTH FACS FING AUTH REV 5%

1.20 3.7 Mil
municipal

LOS ANGELES CALIF HBR DEPT REV 5%

1.18 3.6 Mil
municipal

UNIVERSITY CALIF REVS 5%

1.13 3.5 Mil
municipal

SAN FRANCISCO CALIF CITY & CNTY ARPTS COMMN INTL ARPT REV 5%

1.05 3.2 Mil
municipal

CALIFORNIA INFRASTRUCTURE & ECONOMIC DEV BK REV 5%

1.03 3.2 Mil
municipal

CALIFORNIA INFRASTRUCTURE & ECONOMIC DEV BK REV 4%

1.02 3.1 Mil
municipal

CALIFORNIA ST UNIV REV 5%

1.00 3.1 Mil
municipal