JPMorgan National Municipal Income Fund earns an Above Average Process Pillar rating.
The most meaningful 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 beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.2 stars, also bolsters the process. 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 Muni National Interm 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 overweight debt with 10- to 15-year maturities in recent years. In the latest month, the strategy has relatively overweighted debt with 10- to 15-year maturities compared with its peers as well. Additionally, there's been an underallocation from BBB rated bonds over the past few years. Compared with category peers, however, the strategy had more exposure to the BBB rated bonds in the most recent month. Finally, during the past few years, the fund leaned away from corporate debt. Nevertheless, the fund's corporate debt exposure was in line with peers in the latest month.
This strategy has a modest 2.5% 12-month yield, lower than its average peers' 2.7%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 2.6%. 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 has a lower average credit rating of BBB, compared with the category average's A and its non-investment-grade stake is 3% of assets, compared to its peers' 1%. Strategies with more credit risk may have a higher return, but they are riskier.