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JPMorgan Emerging Markets Debt R5 JEMRX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 6.13  /  0.00
  • Total Assets 644.8 Mil
  • Adj. Expense Ratio
    0.750%
  • Expense Ratio 0.750%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Large
  • Category Emerging Markets Bond
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment
  • Status Open
  • TTM Yield 5.63%
  • Effective Duration 7.14 years
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Morningstar’s Analysis JEMRX

Medalist rating as of .

JPMorgan Emerging Markets Debt R5’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its 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.

JPMorgan Emerging Markets Debt R5’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze.

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Morningstar Manager Research

Summary

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

The strategy has been able to retain portfolio managers, which builds stability and continuity and results in an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable underweight position in A rated bonds and has a considerable overweight in debt with 20- to 30-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 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.

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Morningstar Manager Research

Process

Average

JPMorgan Emerging Markets Debt Fund earns an Average Process Pillar rating.

The primary contributor to 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 3.2 stars. The parent firm's five-year risk-adjusted success ratio of 57% also strengthens the process. 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. Their commendable 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 fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

Compared with other funds in the Emerging Markets 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. Relative to the average strategy in the category, the managers have been significantly underweight A rated bonds in recent years. Different from its historical appetite, however, the portfolio's credit quality was in line with the Morningstar Category peers in recent months. Additionally, there's been a notable overallocation to debt with 20- to 30-year maturities over the past few years. Compared with category peers, the strategy had more exposure to debt with 20- to 30-year maturities in the most recent month. Finally, during the past few years, the fund leaned away from corporate bonds. In recent months, the strategy also had less exposure to corporate debt compared to its peers.

This strategy's 12-month yield is 5.4%, lower than its average peers' 5.8%. In addition, it has a 6.4% 30-day SEC yield (a measure similar to yield-to-maturity). 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 Emerging Markets Debt Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

The main contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average ten-year Morningstar Rating of 3.2 stars. Management team experience, which averages 19 years at this fund, also influences the rating. Lastly, the rating is limited because none of the managers have invested more than$ 1 million in the fund, which would indicate confidence in the strategy.

The team has successfully retained portfolio-manager talent, providing continuity for strategies as long-term stability tends to support positive results. There have been no documented departures within the past five years.

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

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Morningstar Manager Research

Performance

It has provided varied returns compared with peers, but poor returns compared with the category benchmark. Over the past eight-year period, this share class underperformed the category's average return by an annualized 90 basis points. But if extended to a 10-year time period, it outperformed the average by 40 basis points. Despite the mixed performance compared to peers, it did not extend when compared with the category index, JPMorgan Emerging Markets Global Diversified Bond Index, where it trailed by an annualized 1.1 percentage points over the same 10-year period.

When adjusting for risk, the fund does not hold up. The share class trailed the index with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. This subpar risk-adjusted performance has not resulted in higher volatility, as measured by their standard deviation, which is close to the benchmark. 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.

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

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Morningstar Manager Research

Price

It is good practice to weigh them heavily in any investment evaluation. This share class is in the second-cheapest quintile of its Morningstar Category. Its attractive fee, paired with the fund’s People, Process, and Parent Pillars, indicates that this share class is well-positioned to generate positive alpha against its category benchmark, leading to its Morningstar Medalist Rating of Bronze.

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Portfolio Holdings JEMRX

  • Current Portfolio Date
  • Equity Holdings 0
  • Bond Holdings 314
  • Other Holdings 4
  • % Assets in Top 10 Holdings 12.2
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

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2.43
15,312,828
Cash and Equivalents

Brazil (Federative Republic) 8.25%

1.61
10,146,486
Government

Philippines (Republic Of) 4.625%

1.32
8,315,562
Government

Chile (Republic of) 2.55%

1.28
8,063,320
Government

Dominican Republic 6%

1.26
7,906,000
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Turkey (Republic of) 4.875%

1.18
7,447,020
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Uruguay (Republic of) 7.625%

1.16
7,310,207
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Peru (Republic of) 3%

1.15
7,244,334
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JSC National Company KazMunayGas 5.375%

1.10
6,925,625
Corporate

Paraguay (Republic of) 5.4%

1.08
6,785,206
Government