Skip to Content

JPMorgan New York Tax Free Bond A VANTX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 6.48  /  0.15 %
  • Total Assets 375.7 Mil
  • Adj. Expense Ratio
    0.550%
  • Expense Ratio 0.550%
  • Distribution Fee Level Low
  • Share Class Type Front Load
  • Category Muni New York Intermediate
  • Credit Quality / Interest Rate Sensitivity
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 2.61%
  • Effective Duration 4.90 years
unlocked

Morningstar’s Analysis VANTX

Medalist rating as of .

Strength in JPMorgan New York Tax Free Bond A's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of 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.

Strength in JPMorgan New York Tax Free Bond A's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of Neutral.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee 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 investment approach stands out and 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 New York Tax Free Bond Fund earns an Above Average Process Pillar rating.

The most significant 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 excellent risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.2 stars, also contributes to the process. 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 Muni New York Intermediate Morningstar Category, this fund takes on significantly lower credit risk. But in terms of long-term interest-rate sensitivity, it hews closely to its average peer 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 category average, the managers have been overweight debt with 10- to 15-year maturities in recent years. In the latest month, the strategy has relatively overweighted debt with 10- to 15-year maturities compared with its peers as well. Additionally, there's been a notable overallocation to AA rated bonds over the past few years. Compared with category peers, however, the strategy had less AA rated bonds exposure in the latest month. Finally, during the past few years, the fund leaned away from corporate debt. Nevertheless, the fund's corporate debt exposure was in line with peers in the latest month.

This strategy has a 2.6% 12-month yield, higher than its average peer's 2.4%. In addition, it has a 2.6% 30-day SEC yield (a measure similar to yield-to-maturity). Higher yields tend to indicate higher credit risk. The portfolio has a lower average surveyed credit quality of A, compared with the typical peers' AA and its non-investment-grade stake is 3% of assets, compared to its peers' 0%. Strategies that take on more credit risk tend to be at their best when markets are as well. This risk contributes to strong performance during bull markets at the cost of losing more on the downside.

Rated on Published on

JPMorgan New York Tax Free Bond Fund earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

The most significant 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 beat their respective category's median return for the period. The stability of talent across its parent firm also supports the team. The firm's asset-weighted manager tenure of 16 years demonstrates its ability to retain portfolio managers. Lastly, the rating is limited by the instability of its management team. The fund last saw a manager change two months ago, which suggests that it could do more to retain its portfolio managers.

Kevin M. Ellis, the longest-tenured manager on the strategy, provides strong guidance, offering over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.6 stars, demonstrating underwhelming risk-adjusted performance. Kevin M. Ellis has an experienced listed co-manager. Together, they average 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

Trailing both category peers and the index, this strategy’s A share class has had a weak track record in the Muni New York Intermediate category.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over the past 10-year period, this share class lagged its average peer by an annualized 35 basis points. It was also not able to outpace the category benchmark, Bloomberg Barclays Municipal New York Tax-Exempt Bond Index, where it trailed by an annualized 1.2 percentage points over the same period.

When risk is properly accounted for, the strategy is not any more compelling. The share class trailed the index with a lower Sharpe ratio, a measure of risk-adjusted returns, 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 compound over time and reduce returns, so it is critical for investors to minimize expenses.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class imposes a fee that places it in its Morningstar Category's second-cheapest quintile. Despite this fee, the fund’s People, Process, and Parent Pillars suggest this share class should not be able to deliver positive alpha relative to its category benchmark, resulting in a Morningstar Medalist Rating of Neutral.

Published on

Portfolio Holdings VANTX

  • Current Portfolio Date
  • Equity Holdings 0
  • Bond Holdings 172
  • Other Holdings 2
  • % Assets in Top 10 Holdings 15.2
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Instl Tx Fr Mny Mkt Agcy

3.96
14,870,993
Cash and Equivalents

UTILITY DEBT SECURITIZATION AUTH N Y 5%

3.33
12,494,974
municipal

NEW YORK ST TWY AUTH ST PERS INCOME TAX REV 5%

1.52
5,716,323
municipal

NEW YORK ST DORM AUTH REVS 5.5%

1.42
5,321,384
municipal

NEW YORK ST URBAN DEV CORP REV 5.5%

1.38
5,169,608
municipal

NEW YORK ST DORM AUTH SALES TAX REV ST SUPPORTED DEBT 5%

1.38
5,160,045
municipal

NEW YORK ST URBAN DEV CORP ST SALES TAX REV 4%

1.35
5,069,157
municipal

NEW YORK N Y CITY TRANSITIONAL FIN AUTH REV 4%

1.26
4,708,111
municipal

NEW YORK N Y CITY TRANSITIONAL FIN AUTH BLDG AID REV 5.25%

1.19
4,460,626
municipal

NEW YORK N Y CITY TRANSITIONAL FIN AUTH BLDG AID REV 5%

1.18
4,411,268
municipal