JPMorgan California Tax Free Bond Fund earns an Above Average Process Pillar rating.
The largest contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 56%. 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 supports 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 California Intermediate Morningstar Category, this fund takes on lower credit risk. But in terms of long-term interest-rate sensitivity, it hews closely to its average peer 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 underweight A rated bonds in recent years. In the latest month, the strategy has also relatively underweighted A rated bonds compared with Morningstar Category peers. Additionally, there's been a notable 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 debt. Nevertheless, the fund's corporate debt exposure was in line with peers in the latest month.
This strategy's 12-month yield is 2.7%, which is near its average peer. Plus, it has a 2.8% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). The portfolio holds assets with a higher average surveyed credit quality of A, compared with the category average of BBB, and its non-investment-grade stake is 1% of assets, compared with its average peers' 0%. Lower-credit-risk strategies are often able to navigate bear markets more effectively.