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JPMorgan Tax Free Bond A PMBAX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.90  /  0.09 %
  • Total Assets 829.5 Mil
  • Adj. Expense Ratio
    0.670%
  • Expense Ratio 0.670%
  • Distribution Fee Level Low
  • Share Class Type Front Load
  • Category Muni National Long
  • Credit Quality / Interest Rate Sensitivity Medium / Extensive
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 3.36%
  • Effective Duration 8.63 years
unlocked

Morningstar’s Analysis PMBAX

Medalist rating as of .

JPMorgan Tax Free Bond A boasts strong People and Process Pillar ratings, but other weaknesses hold this strategy's Morningstar Medalist Rating at Neutral.

Our research team assigns Neutral ratings to strategies they’re not confident will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

JPMorgan Tax Free Bond A boasts strong People and Process Pillar ratings, but other weaknesses hold this strategy's Morningstar Medalist Rating at Neutral.

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 management team earns an Above Average People Pillar rating. The strategy's sensible investment philosophy earns an Above Average Process 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 Tax Free Bond Fund earns an Above Average Process Pillar rating.

The predominant 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. The parent firm's impressive risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.2 stars, also strengthens the process. Lastly, the process is limited by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

Compared with other funds in the Muni National Long 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 overweight AAA rated bonds in recent years. In the latest month, the strategy has relatively overweighted AAA rated bonds compared with its peers as well. Additionally, the managers have exhibited a notable sector bias towards cash over the past few years. Compared with category peers, the strategy had more exposure to cash in the most recent month. Finally, during the past few years, the fund leaned meaningfully towards debt with 15- to 20-year maturities. In this month, the strategy also leaned more towards debt with 15- to 20-year maturities compared with its peers.

This strategy's 12-month yield is 3.3%, higher than its average peer's 3.2%. It also has a 3.3% 30-day SEC yield (a measure similar to yield-to-maturity). 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 Tax Free Bond 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 has an experienced listed co-manager. Together, they average 23 years of listed portfolio management experience.

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 not kept up with its peers or the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Specifically, over the past 10-year period, this share class trailed its category's average return by an annualized 17 basis points. It was also not able to outpace the category benchmark, Bloomberg Barclays Municipal Bond Index, where it trailed by an annualized 52 basis points over the same period.

Even when adjusting for risk, the fund is not favorable. The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the index over the trailing 10-year period. But notably, these subpar risk-adjusted results have not come with more volatility than the benchmark, as measured by 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

Fees are one of the most predictive factors of future performance.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is within the middle quintile of its Morningstar Category. Its modest fee, considered jointly with the fund’s People, Process, and Parent Pillars, suggests that this share class could struggle to deliver positive alpha versus its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

Published on

Portfolio Holdings PMBAX

  • Current Portfolio Date
  • Equity Holdings 0
  • Bond Holdings 458
  • Other Holdings 4
  • % Assets in Top 10 Holdings 14.6
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

2.76
22,386,932
Cash and Equivalents

LOUISIANA ST GAS & FUELS TAX REV

2.47
20,000,000
municipal

WASHINGTON ST 5%

1.94
15,713,286
municipal

BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5%

1.45
11,714,055
municipal

SOUTHERN CALIF PUB PWR AUTH SOUTHN TRANSMISSION SYS RENEWAL PROJ REV 5.25%

1.42
11,469,134
municipal

TENNERGY CORP TENN GAS REV

1.25
10,137,076
municipal

COMMONWEALTH FING AUTH PA TOB MASTER SETTLEMENT PMT REV 4%

1.24
10,047,924
municipal

NEW YORK N Y

1.23
10,000,000
municipal

SOUTHCENTRAL PA GEN AUTH REV

1.23
10,000,000
municipal

PENNSYLVANIA ST TPK COMMN OIL FRANCHISE TAX REV 4%

1.20
9,730,444
municipal