Skip to Content

JPMorgan Strategic Income Opports A JSOAX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 11.45  /  +0.09 %
  • Total Assets 9.7 Bil
  • Adj. Expense Ratio
    1.000%
  • Expense Ratio 1.000%
  • Distribution Fee Level Below Average
  • Share Class Type Front Load
  • Category Nontraditional Bond
  • Credit Quality / Interest Rate Sensitivity High/Limited
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 4.78%
  • Effective Duration −0.91 years

USD | NAV as of May 17, 2024 | 1-Day Return as of May 17, 2024, 10:16 PM GMT+0

unlocked

Morningstar’s Analysis JSOAX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Strategic Income Opports A'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 Strategic Income Opports A's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.

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 an underweight position in B rated bonds and debt with 20- to 30-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 Strategic Income Opports Fd earns an Above Average Process Pillar rating.

The most important driver of 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. Strong risk-adjusted performance also influences the rating. 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, 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 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. Compared with the category average, the managers have been underweight B rated bonds in recent years. In the latest month, the strategy has also relatively underweighted B rated bonds compared with Morningstar Category peers. Additionally, there's been a notable bias away from debt with 20- to 30-year maturities over the past few years. Similarly, in recent months, the strategy also had less exposure to debt with 20- to 30-year maturities than peers. Finally, during the past few years, the fund leaned meaningfully towards cash. In this month, the strategy also leaned more towards cash compared with its peers.

This strategy's 12-month yield is 4.7%, lower than its average peers' 4.9%. In addition, it has a 4.6% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). A lower yield tends to indicate lower credit risk. The portfolio holds assets with a higher average surveyed credit quality of BBB, compared with the typical peers' BB, and its non-investment-grade stake is 4% of assets, compared with its average peers' 24%. Strategies with less credit risk may help to provide a reliable ballast during periods of market stress.

Rated on Published on

JPMorgan Strategic Income Opports Fd earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

William H. Eigen, the longest-tenured manager on the strategy, boasts 23 years of listed portfolio management experience. The average Morningstar Rating of the strategies they manage is 3.4 stars, demonstrating above-average risk-adjusted performance compared to category peers. Although the team is small, it is a solid supporting cast. Together, the three listed managers boast more than an average of 20 years of listed portfolio management experience. 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

This strategy’s A share class has had varying fortunes.

null Morningstar Manager Research

Morningstar Manager Research

Performance

It has been subpar over the short term but successful over the long term. Over the past five years, the fund underperformed the category index, the ICE BofA US 3 Month Deposit OR CM Index, by 19 basis points, and equaled the category average. More importantly, on a 10-year basis, this share class outperformed the index by an annualized 50 basis points.

The share class failed to beat the index with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. In addition to its subpar risk-adjusted performance, the strategy also took on elevated risk, as measured by a higher standard deviation, 2.2%, than the benchmark, 0.5%.

Published on

It is imperative to evaluate fees, which compound over time and diminish returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class imposes a fee that ranks in its Morningstar Category's middle quintile. Despite this fee, the fund’s People, Process, and Parent Pillars indicate this share class can produce positive alpha relative to its category benchmark, resulting in a Morningstar Medalist Rating of Bronze.

Published on

Portfolio Holdings JSOAX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 2.5
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Prime Money Market Inst

57.00 5.5 Bil
Cash and Equivalents

Federal National Mortgage Association 6%

4.19 402.8 Mil
Securitized

ING Groep N.V. 6.75%

1.01 96.8 Mil
Corporate

AT&T Inc 6.76245%

0.97 92.8 Mil
Cash and Equivalents

Citigroup Inc. 6.04239%

0.69 66.3 Mil
Corporate

Bofa Securities, Inc. 5.6

0.68 65.0 Mil
Cash and Equivalents

Cash

0.65 62.0 Mil
Cash and Equivalents

BMW US Capital, LLC 5.74786%

0.59 56.3 Mil
Corporate

UBS AG, London Branch 5.81861%

0.55 52.8 Mil
Corporate

Bank of America Corp. 6.07135%

0.55 52.8 Mil
Corporate