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JPMorgan Managed Income L JMGIX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.00  /  +0.01 %
  • Total Assets 5.4 Bil
  • Adj. Expense Ratio
    0.250%
  • Expense Ratio 0.250%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Large
  • Category Ultrashort Bond
  • Credit Quality / Interest Rate Sensitivity Medium/Limited
  • Min. Initial Investment 3.0 Mil
  • Status Open
  • TTM Yield 5.13%
  • Effective Duration 0.52 years

USD | NAV as of Jun 11, 2024 | 1-Day Return as of Jun 11, 2024, 11:12 PM GMT+0

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Morningstar’s Analysis JMGIX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Managed Income L's Morningstar Medalist Rating of Silver.

Our research team assigns Silver ratings to strategies that they have a high conviction will outperform the relevant index, or most peers, over a market cycle on a risk-adjusted basis.

A sound investment process and strong management team underpin JPMorgan Managed Income L's Morningstar Medalist Rating of Silver.

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 effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in AAA rated bonds and government 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.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Managed 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent firm's impressive 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 being an actively managed strategy. Historical data, such as Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

Compared with other funds in the Ultrashort Bond 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 average strategy in the category, the managers have been substantially underweight AAA rated bonds in recent years. In the latest month, the strategy has also relatively underweighted AAA rated bonds compared with Morningstar Category peers. Additionally, the managers have exhibited a sector bias away from government bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to government bonds than peers. Finally, during the past few years, the fund leaned meaningfully away from debt with 20- to 30-year maturities. In recent months, the strategy also had less exposure to debt with 20- to 30-year maturities compared to its peers.

This strategy's 12-month yield is 5.1%, higher than its average peer's 4.9%. It also has a 5.3% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). Higher yields tend to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher 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 A.

Rated on Published on

JPMorgan Managed Income Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

David N. Martucci, the longest-tenured manager on the strategy, provides strong guidance, offering 24 years of listed portfolio management experience. David N. Martucci is supported by an experienced team, being able to draw on three additional listed managers, who average 12 years of listed portfolio management experience. As a team, they manage four investment vehicles together, with a Silver asset-weighted algorithmically-assigned average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha in aggregate. The management team has provided the fund with commendable continuity. There have been no documented departures within the past 10 years.

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

null Morningstar Manager Research

Morningstar Manager Research

Performance

It has provided similar returns compared with peers, but better returns compared with the category benchmark. This share class mirrored the category average's 2.0% return over the eight-year period and its 1.7% return over a 10-year period. However, it was able to clear the hurdle of outperforming the category index, Bloomberg Barclays Government/ Corporate 1 Year Duration Bond Index, where it led by an annualized 61 basis points over the same 10-year period.

When adjusting for risk, this fund is competitive. The share class led the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing 10-year period. These strong risk-adjusted results have not resulted in a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. Finally, 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.

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 is within the second-cheapest quintile of its Morningstar Category. Its low expense ratio, taken together with the fund’s People, Process, and Parent Pillars, indicates that this share class has high potential to deliver positive alpha compared with its category benchmark, leading to its Morningstar Medalist Rating of Silver.

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Portfolio Holdings JMGIX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 8.1
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

BPCE SA 5.029%

1.62 87.7 Mil
Corporate

Federation des Caisses Desjardins du Quebec 5.278%

1.48 80.5 Mil
Corporate

JPMorgan Prime Money Market Inst

1.45 78.9 Mil
Cash and Equivalents

Bank of Nova Scotia 5.45%

1.40 75.7 Mil
Corporate

UBS Group AG 4.49%

1.38 74.9 Mil
Corporate

Northern Trust Co. (The) Chicago ILL 5.4%

1.28 69.3 Mil
Cash and Equivalents

Royal Bank of Canada 5.76628%

1.15 62.4 Mil
Corporate

Commonwealth Bank of Australia

1.12 60.7 Mil
Cash and Equivalents

Wells Fargo Securities, L

1.11 60.0 Mil

United States Treasury Notes 4.625%

1.07 57.9 Mil
Government