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JPMorgan National Municipal Income C JITCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 9.93  /  0.00
  • Total Assets 2.2 Bil
  • Adj. Expense Ratio
    1.200%
  • Expense Ratio 1.200%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Muni National Interm
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 2.67%
  • Effective Duration 5.61 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 JITCX

Medalist rating as of .

JPMorgan National Municipal Income 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 National Municipal Income 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 strategy underwent an entire portfolio management team change less than a year ago, but confidence in the strategy's new leadership drives an Above Average People Pillar rating. The strategy's investment approach stands out 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 BBB rated bonds and has an 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 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 National Municipal Income Fund earns an Above Average Process Pillar rating.

The leading factor in 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 excellent 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 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. Relative to the average strategy in the category, the managers have been underweight BBB rated bonds in recent years. In the latest month, the strategy has also relatively underweighted BBB rated bonds compared with Morningstar Category peers. Additionally, there's been an overallocation to 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 debt. Nevertheless, the fund's corporate debt exposure was in line with peers in the latest month.

This strategy has a modest 2.6% 12-month yield, lower than its average peers' 2.8%. In addition, it has a 2.6% 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 has a lower average surveyed credit quality of BBB, compared with the category average's A and its non-investment-grade stake is 4% of assets, compared to its peers' 1%. Strategies that take on more credit risk tend to be at their best when markets are as well. This risk contributes to strong performance during bull markets at the cost of losing more on the downside.

Rated on Published on

The fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Even though this strategy’s track record dates back to September 2001, the listed management team joined within the past three years. Therefore, the track record achieved under the previous team is not representative of the fund’s current merits.

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

Following a complete portfolio management regime change, JPMorgan National Municipal Income Fund's long-term track record, dating back to December 2003, may no longer be indicative of the current strategy.

null Morningstar Manager Research

Morningstar Manager Research

Performance

This makes it difficult to compare recent and past performance. The new team took the reins in February 2024. With this narrow of a time frame with the new team, it is difficult to make a meaningful assessment of the fund’s performance.

Published on

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 costliest quintile of its Morningstar Category. Its unattractive fee, in conjunction with the fund’s People, Process, and Parent Pillars, suggests that this share class is unlikely to deliver positive alpha against its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

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Portfolio Holdings JITCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 12.6
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

3.39 86.7 Mil
Cash and Equivalents

TENNESSEE ENERGY ACQUISITION CORP GAS REV 4%

2.23 57.2 Mil
municipal

UNIVERSITY CALIF REVS 3%

1.76 45.0 Mil
municipal

CALIFORNIA CMNTY CHOICE FING AUTH CLEAN ENERGY PROJ REV 4%

1.55 39.8 Mil
municipal

UTAH CNTY UTAH HOSP REV 2.85%

1.37 35.0 Mil
municipal

MAIN STR NAT GAS INC GA GAS SUPPLY REV 5%

1.17 29.9 Mil
municipal

SALES TAX SECURITIZATION CORP ILL 5.5%

0.99 25.4 Mil
municipal

METROPOLITAN GOVT NASHVILLE & DAVIDSON CNTY TENN 4%

0.98 25.1 Mil
municipal

SOUTHEAST ENERGY AUTH COMMODITY SUPPLY REV ALA 4%

0.86 21.9 Mil
municipal

CAMPBELL CNTY WYO SOLID WASTE FACS REV 3.625%

0.84 21.6 Mil
municipal