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JPMorgan Tax Free Bond I PRBIX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.74  /  +0.09 %
  • Total Assets 726.5 Mil
  • Adj. Expense Ratio
    0.450%
  • Expense Ratio 0.450%
  • Distribution Fee Level Low
  • Share Class Type Institutional
  • Category Muni National Long
  • Credit Quality / Interest Rate Sensitivity Medium/Extensive
  • Min. Initial Investment 1.0 Mil
  • Status Open
  • TTM Yield 3.68%
  • Effective Duration 8.46 years

USD | NAV as of Apr 20, 2024 | 1-Day Return as of Apr 20, 2024, 12:09 AM GMT+0

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Morningstar’s Analysis PRBIX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Tax Free Bond I'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 strong management team and sound investment process underpin JPMorgan Tax Free Bond I's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the second-lowest fee quintile among peers.

The longest-tenured portfolio manager's extensive experience drives the strategy's 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, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

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 main driver of 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 beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent firm's excellent risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also contributes to the process.

Compared with other funds in the Muni National Long Morningstar Category, this fund has been consistently sensitive to interest-rate changes 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, the fund has 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 has a 3.6% 12-month yield, higher than its average peer's 3.3%. It also has a 3.5% 30-day SEC yield (a measure similar to yield-to-maturity). While a higher yield may deliver more income, it also tends 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

The most significant contributor to the rating is its parent firm's five-year success ratio of 57%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The stability of talent across its parent firm also influences the rating. The firm's asset-weighted manager tenure of 19 years demonstrates its ability to retain portfolio managers. Lastly, the rating is limited by the turnover of its management team. The fund last saw a manager change zero month ago, which suggests that it could do more to retain its portfolio managers.

The team is backed by Michelle V. Hallam, the longest-tenured manager on the strategy, who brings 20 years of listed portfolio management experience. The strategies they currently manage have an average Morningstar Rating of 2.6 stars, demonstrating disappointing risk-adjusted performance compared with category peers. Although the team is small, it is a solid supporting cast. Together, the three listed managers boast more than an average of 14 years of listed portfolio management experience. None of the managers here invest any money in the strategy, which is disappointing, as such investments help align managers' interests with fundholders.

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 Institutional share class has mirrored both its average peer and category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over the past 10-year period, this share class' 2.3% return was about even with the average peer's performance. It was not able to outpace the category benchmark, Bloomberg Barclays Municipal Bond Index, where it trailed by an annualized 34 basis points over the same period.

Even when adjusting for risk, the fund is not favorable. 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. This subpar risk-adjusted performance has not resulted in higher volatility, as measured by their standard deviation, which is close to the benchmark. 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

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

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is in the second-cheapest quintile of its Morningstar Category. Its competitive expense ratio, in conjunction 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 Bronze.

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Portfolio Holdings PRBIX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 13.6
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

15.32 127.7 Mil
Cash and Equivalents

LOUISIANA ST GAS & FUELS TAX REV 3.65%

2.40 20.0 Mil
municipal

NEW YORK N Y CITY TRANSITIONAL FIN AUTH REV 3.65%

1.44 12.0 Mil
municipal

BUCKEYE OHIO TOB SETTLEMENT FING AUTH 5%

1.42 11.9 Mil
municipal

TENNERGY CORP TENN GAS REV 4%

1.22 10.1 Mil
municipal

COMMONWEALTH FING AUTH PA TOB MASTER SETTLEMENT PMT REV 4%

1.21 10.1 Mil
municipal

DISTRICT COLUMBIA REV 3.3%

1.20 10.0 Mil
municipal

NEW YORK N Y 3.65%

1.20 10.0 Mil
municipal

PENNSYLVANIA ST TPK COMMN TPK REV 3.3%

1.20 10.0 Mil
municipal

SOUTHCENTRAL PA GEN AUTH REV 3.5%

1.20 10.0 Mil
municipal