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JPMorgan National Municipal Income C JITCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 9.94  /  +0.10 %
  • Total Assets 2.4 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 2.54%
  • Effective Duration 5.63 years

USD | NAV as of Feb 22, 2024 | 1-Day Return as of Feb 22, 2024, 11:57 PM GMT+0

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Morningstar’s Analysis JITCX

Medalist rating as of .

JPMorgan National Municipal Income C boasts strong Process and People 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 Process and People 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 highest 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 overweight in debt with 10- to 15-year maturities and an underweight in BBB rated bonds compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

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

Above Average

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.

Rated on Published on

JPMorgan National Municipal Income Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Richard D. Taormina, the longest-tenured manager on the strategy, boasts over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.6 stars, indicating that their risk-adjusted returns have underperformed the category average. Richard D. Taormina has an experienced listed co-manager. Together, they average over 25 years of listed portfolio management experience.

Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other 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 compared with peers and when adjusted for risk.

null Morningstar Manager Research

Morningstar Manager Research

Performance

The share class failed to beat the category index, Bloomberg Barclays Municipal 1-15 Year Bond Index, with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. However, this strategy stayed in line with 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.

The fund continues to have a disappointing track record viewed through the lens of long-term absolute returns. The share class underperformed the category index by an annualized 1.4 percentage points over the past 10 years. The strategy also trailed the category average by an annualized 1.1 percentage points over the same 10-year period. Although the rating does not hinge on one-year performance figures, it is notable that this share class returned 4.2%, a sizable 1.4-percentage-point loss over its average peer. This places it within the bottom 10% of its peer group.

Published on

By minimizing expenses, investors can maximize their expected returns.

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Morningstar Manager Research

Price

This share class is within the costliest quintile of its Morningstar Category. Its steep fee, considered jointly with the fund’s People, Process, and Parent Pillars, indicates that this share class could struggle to produce positive alpha against its category benchmark, leading to 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 10.8
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

4.60 126.9 Mil
Cash and Equivalents

TENNESSEE ENERGY ACQUISITION CORP GAS REV

2.08 57.4 Mil
municipal

CALIFORNIA CMNTY CHOICE FING AUTH CLEAN ENERGY PROJ REV

1.44 39.7 Mil
municipal

SOUTHEAST ALA GAS SUPPLY DIST GAS SUPPLY REV

1.23 34.0 Mil
municipal

MAIN STR NAT GAS INC GA GAS SUPPLY REV

1.09 30.1 Mil
municipal

SALES TAX SECURITIZATION CORP ILL 5.5%

0.93 25.5 Mil
municipal

METROPOLITAN GOVT NASHVILLE & DAVIDSON CNTY TENN 4%

0.91 25.1 Mil
municipal

SOUTHEAST ENERGY AUTH COMMODITY SUPPLY REV ALA

0.80 22.1 Mil
municipal

CAMPBELL CNTY WYO SOLID WASTE FACS REV 3.625%

0.79 21.7 Mil
municipal

MISSISSIPPI ST 4%

0.78 21.4 Mil
municipal