As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.
- Portfolio manager Barb Miller and team have delivered consistently higher risk-adjusted returns with meaningfully lower volatility vs. benchmark and peers.
- Uses bottom-up security selection to construct a portfolio of high-quality U.S. investment grade bonds.
- Fund’s negative correlation to equities is lower than 95% of peers, making it an effective diversifier
- Portfolio has provided stability with a track record of consistent returns in challenging markets (+4% in ‘08)
10-YEAR RISK-ADJUSTED RETURNS AND VOLATILITY
Chart source: Morningstar as of 3/31/17. Benchmark: Bloomberg Barclays U.S. Aggregate Index. Sharpe ratio is a measurement of a fund’s returns relative to its risks. Higher numbers for risk-adjusted returns are better.
Fees and Minimums
Management and Commentary
Q1 2017 Commentary
Quarter in review:
- The JPMorgan Core Bond Fund (I Class Shares) outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Index, for the quarter ended March 31, 2017.
- The Fund’s bottom-up security selection yielded excess returns across most broad sectors in the quarter. Of particular note was the mortgage sector where our combination of pass-throughs, agency collateralized mortgage obligations and non-agency securities outperformed benchmark mortgages. Our allocation to ABS, including autos and consumer credit, was an additional bright spot.
- A small overweight to BBB securities helped as lower-quality investment-grade securities outperformed higher quality. Benchmark BBBs returned 1.71% while AAAs returned only 0.60% in the first quarter.
- An underweight to credit, specifically to non-corporate credit including investment grade, dollar-denominated sovereign bonds weighed on returns. The benchmark return for these securities was an outsized 3.34% during the period. The investment team has maintained a structural underweight to these securities, preferring sectors that they judge to have better risk/return characteristics.
- Over the quarter, the interest rate curve flattened. Yields on shorter-duration bonds rose while yields on longer-duration bonds fell, causing longer-duration bonds to outperform. Our underweight to the 30-year portion of the curve dragged on performance.
- The portfolio management team continues to focus on providing clients with a high-quality, “true core” fixed income portfolio. Our process seeks high correlation with our benchmark and has historically delivered negative correlations with risky assets.
- We continue to position the portfolio for the possibility of higher interest rates. Our lower duration, underweight to the most volatile 30-year portion of the curve, and higher spread and carry versus its benchmark are all characteristics that could help us outperform the Bloomberg Barclays U.S. Aggregate Index as rates rise.
- Uncertified Portfolio Holdings – Core Bond Fund
- Monthly Fund Update: Core Bond Fund
- Supplemental Data Sheet - Core Bond Fund
- Tapping into Proven Success
- Quarterly Product Guide
- 1Q 2017 Taxable Mutual Fund Commentary
- Income/rising rate blend strategy
- Building stronger fixed income portfolios
- Sales Charge / Dealer Concession Schedule
- 2016 JPMorgan Funds Capital Gains Distribution
- Quarterly Certified Holdings - JPMorgan Core Bond Fund
Total return assumes reinvestment of income.
The Fund's adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation and extraordinary expenses) exceed 0.75% for A Shares, 1.40% for C Shares, 0.50% for I Shares, 1.00% for R2 Shares, 0.85% for R3 Shares, 0.60% for R4 Shares, 0.45% for R5 Shares and 0.35% for R6 Shares of the average daily net assets. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund's adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and expenses of the affiliated money market funds incurred by the Fund because of the Fund's investment in such money market funds. This waiver is in effect through 10/31/2018 for A Shares, 10/31/2018 for C Shares, 10/31/2018 for I Shares, 10/31/2018 for R2 Shares, 8/31/2017 for R3 Shares, 8/31/2017 for R4 Shares, 10/31/2018 for R5 Shares and 10/31/2018 for R6 Shares, at which time the adviser and/or its affiliates will determine whether to renew or revise it. The difference between net and gross fees includes all applicable fee waivers and expense reimbursements.
Mutual funds have fees that reduce their performance: indexes do not. You cannot invest directly in an index.
The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index representing SEC-registered taxable and dollar denominated securities. It covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through, and asset-backed securities.
The performance of the Lipper Core Bond Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund.
Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges, where applicable. Performance may reflect the waiver of a portion of the Fund's advisory or administrative fees and/or reimbursement of certain expenses for certain periods since the inception date. If fees had not been waived and/or certain expenses were not reimbursed, performance would have been less favorable.
Â©2017, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops.
Investments in derivatives may be riskier than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment.
The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans.
The Fund could experience a loss and its liquidity may be negatively impacted when selling securities to meet redemption requests by shareholders. The risk of loss increases if the redemption requests are unusually large or frequent or occur in times of overall market turmoil or declining prices. Similarly, large purchases of Fund shares may adversely affect the Fund's performance to the extent that the Fund is delayed in investing new cash and is required to maintain a larger cash position than it ordinarily would.
The top 10 holdings listed reflect only the Fund's long-term investments. Short-term investments are excluded. Holdings are subject to change. The holdings listed should not be considered recommendations to purchase or sell a particular security. Each individual security is calculated as a percentage of the aggregate market value of the securities held in the Fund and does not include the use of derivative positions, where applicable.
Duration: Measures price sensitivity of fixed income securities to interest rate changes.
Average Life: The length of time the principal of a debt issue is expected to be outstanding.