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JPMorgan Short-Interm Muncpl Bd C STMCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 10.23  /  0.00
  • Total Assets 822.8 Mil
  • Adj. Expense Ratio
    1.200%
  • Expense Ratio 1.200%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Muni National Short
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 1.43%
  • Effective Duration 2.64 years

USD | NAV as of Feb 23, 2024 | 1-Day Return as of Feb 23, 2024, 11:54 PM GMT+0

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Morningstar’s Analysis STMCX

Medalist rating as of .

Strength in JPMorgan Short-Interm Muncpl Bd C's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of Negative.

Our research team assigns Negative ratings to strategies they’re confident will underperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

Strength in JPMorgan Short-Interm Muncpl Bd C's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of Negative.

null Morningstar Manager Research

Morningstar Manager Research

Summary

Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the most expensive quintile among peers.

The strategy benefits from its experienced portfolio management team. This is a positive driver for the strategy's Average People Pillar rating, following a recent downgrade from Above Average. 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 style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, repeatable execution.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Short-Intermediate Muncpl Bd Fd 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 beat their respective category's median Morningstar Risk-Adjusted Return for the period. Management team experience, which averages 25 years at this fund, also supports the process. 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 Muni National Short 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 AAA rated bonds in recent years. In the latest month, the strategy has also relatively underweighted AAA rated bonds compared with Morningstar Category peers. Additionally, there's been a 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 away from corporate bonds. Nevertheless, the fund's corporate debt exposure was in line with peers in the latest month.

This strategy has a modest 1.4% 12-month yield, lower than its average peers' 2.4%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 2.0%. 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 A.

Rated on Published on

JPMorgan Short-Intermediate Muncpl Bd Fd earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

The main contributor to the rating is its parent firm's five-year success ratio of 58%. 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 strengthens the rating. The firm's asset-weighted manager tenure of 16 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 nine months ago, which suggests that it could do more to retain its portfolio managers.

Kevin M. Ellis’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they currently manage is 2.6 stars, reflecting below-average risk-adjusted performance in comparison to category peers. Despite having a small team, the two listed managers boast over 25 years of listed portfolio management experience. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

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

Performance-wise, this strategy’s C share class, with returns reported in US Dollar, has demonstrated it is weak over a wide time frame, with inferior returns compared with category peers, even after adjusting for risk.

null Morningstar Manager Research

Morningstar Manager Research

Performance

The share class lagged the category index, Bloomberg Barclays Municipal 3 Year 2-4 Year Maturity Bond Index, with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. However, this strategy stayed in line with the benchmark's standard deviation. Finally, the share class proved itself ineffective as it was unable to generate alpha, over the same period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

The fund continues to have a disappointing track record viewed through the lens of long-term absolute returns. The share class underperformed the category index by an annualized 89 basis points over the past 10 years. It also lagged its average peer over the 10-year period by an annualized 76 basis points. Although one-year performance does not factor heavily in the overall rating, it is worth mentioning that this share class returned 2.6%, a sizable 1.1-percentage-point loss over its average peer, placing it within the bottom 10% of its category group.

Published on

It is important to be aware of fees, as lower-cost investments maximize investors' returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class sits in the costliest quintile of its Morningstar Category. Its steep expense ratio, paired with the fund’s People, Process, and Parent Pillars, indicates that this share class will generate materially negative alpha against its category benchmark, leading to its Morningstar Medalist Rating of Negative.

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Portfolio Holdings STMCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 12.2
Top 10 Holdings
% Portfolio Weight
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