JPMorgan Income Builder Fund - A - J.P. Morgan Asset Management
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As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.

JPMORGAN INCOME BUILDER FUND

Scour the world, find more yield.

Using a flexible multi-asset approach that seeks only the best income opportunities from around the globe, the Income Builder Fund aims to provide investors with a consistent and attractive income stream.

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Key Points

Expertise
  • Accesses the best income ideas from J.P. Morgan Asset Management’s global analysts.
Portfolio
  • Combines a flexible approach with disciplined risk management, providing diversification across asset classes and regions.
Success
  • Has consistently provided a much higher yield than traditional sources of income, like CDs.
  • Top-decile performance over ten years1, and top-quartile 100% of the time over rolling five years for total return.2
FUND YIELD VS. SIX-MONTH CD RATE

Chart source: Bankrate.com, J.P. Morgan Asset Management (JPMAM). Distributions shown since June 1, 2008. CDs and mutual funds are different investment vehicles. The comparison is intended to show excess income from the fund versus a generally safe investment.

1Source: Morningstar as of 6/30/17. I Shares. Ranked: 1-yr. (50/503), 3-yrs. (152/400), 5-yrs. (53/348) and 10 yrs. (14/240). Ratings reflect risk-adjusted performance. Different share classes may have different ratings and rankings.
2Morningstar Allocation 30%-50% Equity category. For I Shares as of 6/30/17.

Searching for income

Michael Schoenhaut | October 16, 2015

Meet Michael Schoenhaut, Multi-Asset Portfolio Manager at J.P. Morgan Asset Management, and his team, who, through regular interaction and dialogue, partner with asset class specialists across the globe.

Performance

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Commentary

As of August 31, 2017

Month in review
  • The JPMorgan Income Builder Fund (I Class Shares) returned 0.27% in August.
  • August economic data pointed to a global economy that continues to be coordinated. Virtually every industrial nation is growing for the first time since 2007.
  • Global equity markets modestly extended strong year-to-date gains, led by both emerging and developed markets. Bond yields dropped as investors balanced positive economic data flow with continued sluggishness in inflation and geopolitics. Inflation figures remained weak overall, while central banks were quick to reel in a hawkish turn in policy expectations going into the month.
Looking ahead
  • We maintain our conviction in our pro-risk positioning in light of the pickup in the economic growth outlook, which has also led us to more regionally diversify this exposure outside the U.S. We also maintain a more balanced currency exposure between the U.S. dollar and global currencies given our view that the growth and interest rate gap is closing between the U.S. and the rest of the world.
  • International equities are about 60% of our total equity allocation, including real estate investment trusts. We continue to find European equities particularly attractive given strong economic and earnings momentum, lower near-term political risks, and generally attractive yields in the region. Our exposure to equities is at the highest level since mid-2015.
  • We continue to believe that credit will be the most attractive area within fixed income. While we have maintained a sizeable allocation to high yield, we began to diversify our credit exposure by reducing high yield and marginally increasing our allocation to emerging markets debt. We believe that high-yield spreads are relatively tight and returns on the asset class will likely come from the income component rather than capital appreciation going forward. However, high-yield fundamentals remain supportive so we still believe the asset class has a place in an income portfolio.

Fees and Minimums

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Portfolio

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Management

Fund Managers

Documents

Disclaimer

1Please refer to the prospectus for additional information about cut-off times. 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 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 , 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. MSCI World Index (net of foreign withholding taxes) is a broad measure of the performance of developed countries' equity markets. 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 Income Builder Composite Benchmark is a composite benchmark of unmanaged indexes that includes 60% MSCI World Index (net of foreign withholding taxes) and 40% Bloomberg Barclays U.S. Aggregate Index. The performance of the Lipper Flexible Portfolio 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. An individual cannot invest directly in an index. Total return figures (for the fund and any index quoted) assume payment of fees and reinvestment of dividends (after the highest applicable foreign withholding tax) and distributions. Without fee waivers, fund returns would have been lower. Due to rounding, some values may not total 100%. ©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.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.Rankings do not take sales loads into account.
The following risks could cause the fund to lose money or perform more poorly than other investments. For more complete risk information, see the prospectus. 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. Securities rated below investment grade are considered "high-yield," "non-investment grade," "below investment-grade," or "junk bonds." They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody's Investors Service. Although they can provide higher yields than higher rated securities, they can carry greater risk. International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns. The prices of equity securities are sensitive to a wide range of factors, from economic to company-specific news, and can fluctuate rapidly and unpredictably, causing an investment to decrease in value. 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. Commodity investing is subject to greater volatility than investments in traditional securities, particularly if leveraged. Their value may be affected by overall market movements, index volatility, interest rate changes, or factors affecting a particular industry or commodity. Use of leveraged derivatives may increase return but also increase the possibility for greater loss.
Total return assumes reinvestment of income. 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. Beta measures a fund's volatility in comparison to the market as a whole. A beta of 1.00 indicates a fund has been exactly as volatile as the market. Sharpe ratio measures the fund's excess return compared to a risk-free investment. The higher the Sharpe ratio, the better the returns relative to the risk taken. Tracking Error: The active risk of the portfolio, which determines the annualized standard deviation of the excess returns between the portfolio and the benchmark. Alpha: The relationship between the performance of the Fund and its beta over a three-year period of time. Standard deviation/Volatility: A statistical measure of the degree to which the Fund's returns have varied from its historical average. The higher the standard deviation, the wider the range of returns from its average and the greater the historical volatility. The standard deviation is calculated over a 36-month period based on Fund's monthly returns. The standard deviation shown is based on the Fund's Class A Shares or the oldest share class, where Class A Shares are not available. R2: The percentage of a Fund's movements that result from movements in the index ranging from 0 to 100. A Fund with an R2 of 100 means that 100 percent of the Fund's movement can completely be explained by movements in the Fund's external index benchmark. Risk measures are calculated based upon the Funds' broad-based index as stated in the prospectus.