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JPMorgan National Municipal Income I JITIX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.02  /  +0.10 %
  • Total Assets 2.2 Bil
  • Adj. Expense Ratio
    0.400%
  • Expense Ratio 0.400%
  • Distribution Fee Level Below Average
  • Share Class Type Institutional
  • Category Muni National Interm
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment 1.0 Mil
  • Status Open
  • TTM Yield 3.40%
  • Effective Duration 5.61 years

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

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Morningstar’s Analysis JITIX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan National Municipal Income I's 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.

A sound investment process and strong management team underpin JPMorgan National Municipal Income I's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee 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 underweight position in BBB rated bonds and an overweight in debt with 10- to 15-year maturities 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 determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage.

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 superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also contributes to 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 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 a 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 debt exposure was in line with peers in the latest month.

This strategy has a 3.3% 12-month yield, higher than its average peer's 2.8%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 3.4%. Higher yields tend to indicate higher credit risk. The portfolio has a lower average credit rating of BBB, compared with the typical peers' A and its non-investment-grade stake is 3% 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

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’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The strategies they currently manage have an average Morningstar Rating of 2.6 stars, demonstrating disappointing risk-adjusted performance compared with category peers. Richard D. Taormina is supported by an experienced team, being able to draw on four additional listed managers, who average 20 years of listed portfolio management experience. As a team, they manage two investment vehicles together, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha in aggregate.

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

This strategy's Institutional share class has not kept up with its peers or the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over the past 10-year period, this share class lagged its average peer by an annualized 23 basis points. It was also not able to outpace the category benchmark, Bloomberg Barclays Municipal 1-15 Year Bond Index, where it trailed by an annualized 49 basis points over the same period.

Even 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. 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 10-year period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

Published on

By minimizing expenses, investors can maximize their expected returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the second-cheapest quintile of its Morningstar Category. Its competitive expense ratio, taken together with the fund’s People, Process, and Parent Pillars, suggests that this share class should be able to deliver positive alpha relative to its category benchmark, explaining its Morningstar Medalist Rating of Bronze.

Published on

Portfolio Holdings JITIX

  • 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