Skip to Content

JPMorgan Unconstrained Debt I JSISX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 9.67  /  +0.21 %
  • Total Assets 1.1 Bil
  • Adj. Expense Ratio
    0.650%
  • Expense Ratio 0.650%
  • Distribution Fee Level Below Average
  • Share Class Type Institutional
  • Category Nontraditional Bond
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment 1.0 Mil
  • Status Open
  • TTM Yield 3.98%
  • Effective Duration 3.19 years

USD | NAV as of Jun 18, 2024 | 1-Day Return as of Jun 18, 2024, 10:17 PM GMT+0

unlocked

Morningstar’s Analysis JSISX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Unconstrained Debt I'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 Unconstrained Debt I's Morningstar Medalist Rating of Silver.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.

The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in AA rated bonds and an overweight in debt with five- to seven-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 style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Unconstrained Debt Fund earns an Above Average Process Pillar rating.

The main 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Respectable risk-adjusted performance also strengthens the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by being an actively managed strategy. Historical data, like 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 Nontraditional 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. Relative to the average strategy in the category, the managers have been underweight AA rated bonds in recent years. In the latest month, the strategy has also relatively underweighted AA rated bonds compared with Morningstar Category peers. Additionally, there's been a bias towards debt with five- to seven-year maturities over the past few years. Compared with category peers, the strategy had more exposure to debt with five- to seven-year maturities in the most recent month. Finally, during the past few years, the fund leaned towards government bonds. In recent months, however, the strategy had less exposure to government bonds compared to its peers.

This strategy has a modest 3.9% 12-month yield, lower than its average peers' 5.0%. It also has a 4.9% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). While a lower yield may deliver less income, it also 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's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB.

Rated on Published on

JPMorgan Unconstrained Debt Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Robert Michele’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. Robert Michele is supported by an experienced team, being able to draw on four additional listed managers, who average over 30 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 highest personal investment in this offering by any of its managers is at least$ 1 million. An investment of that size is large enough to align managers' interests with investors.

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

Outpacing both its peers and the category benchmark, this strategy's Institutional share class, has had a noteworthy track record.

null Morningstar Manager Research

Morningstar Manager Research

Performance

This share class led its average peer by an annualized excess return of 68 basis points over a 10-year period. And it was also ahead of the category index, the ICE BofA US 3 Month Deposit OR CM Index, by 1.0 percentage point over the same period.

When adjusting for risk, the fund is not shown in a favorable light. The share class trailed the index with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. Unfortunately, the fund took on higher risk, as measured by the variance of returns. Specifically, the strategy had a higher standard deviation, 3.2%, versus the benchmark, 0.5%. However, 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

It is critical to assess expenses, as they come directly out of returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the cheapest quintile of its Morningstar Category. Its attractive fee, in conjunction with the fund’s People, Process, and Parent Pillars, indicates that this share class can deliver positive alpha against its category benchmark, explaining its Morningstar Medalist Rating of Silver.

Published on

Portfolio Holdings JSISX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 17.9
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Federal National Mortgage Association 4.5%

5.63 64.9 Mil
Securitized

JPMorgan Prime Money Market Inst

5.03 58.1 Mil
Cash and Equivalents

Government National Mortgage Association 5%

4.31 49.8 Mil
Securitized

Federal National Mortgage Association 5.5%

1.75 20.2 Mil
Securitized

Invesco Senior Loan ETF

1.69 19.5 Mil

Cash

1.04 12.0 Mil
Cash and Equivalents

Mexico (United Mexican States) 7.75%

0.95 11.0 Mil
Government

European Union 3%

0.93 10.8 Mil
Government

Federal National Mortgage Association 4%

0.86 9.9 Mil
Securitized

Secretaria Tesouro Nacional 10%

0.76 8.8 Mil
Government