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.
- Accesses the best income ideas from J.P. Morgan Asset Management’s global analysts.
- Combines a flexible approach with disciplined risk management, providing diversification across asset classes and regions.
- Has consistently provided a much higher yield than traditional sources of income, like CDs.
- Top-decile performance over five years and since inception1, 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. *See important details below. Must be preceded or accompanied by a prospectus.
1Source: Morningstar as of 12/31/16. Select Shares. Ranked: 1-yr. (141/515), 3-yrs. (95/413), 5-yrs. (33/362) and since inception (31/332), 10-yrs. n/a. Ratings reflect risk-adjusted performance. Different share classes may have different ratings and rankings.
2Morningstar Allocation 30%-50% Equity category. For Select Shares as of 12/31/16.
Searching for incomeMichael 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.
Fees and Minimums
Management and Commentary
Month in review:
- The JPMorgan Income Builder Fund (Select Class Shares) returned 2.15% in December.
- The Federal Reserve (Fed) raised short-term interest rates by a quarter of a point, to between 0.50% and 0.75%. The Fed also increased its outlook for subsequent rate increases in 2017, now anticipating three quarter-point moves. Officials indicated that upside risks to its economic forecasts increased as a result of prospects for more expansionary fiscal policies. The European Central Bank decided to extend its asset-purchase program through 2017, although at a reduced level after March.
- Oil prices continued higher as big producers outside the Organization of the Petroleum Exporting Countries (OPEC), including Russia, agreed to cut output by approximately 550,000 barrels a day. The move follows a reduction of 1.2 million barrels a day, agreed to by OPEC in November.
- The Fund outperformed its composite benchmark in December, with the EAFE Equity and U.S. High Yield sleeves having the largest positive contributions to performance. We continued to increase our developed market equity allocation and reduce duration.
- The post-election rally continued into December as all of the Fund’s sleeves delivered positive returns. We continued to increase our equity allocation, a move that began in July 2016.
- The long decline in U.S. interest rates appears to be behind us and, absent a severe economic shock, we believe that we are firmly in a reflationary environment. We continue to be positive on equities as the potential for a fiscal boost in the U.S. gives scope for above trend growth in the second half of 2017. Going forward, we look to increase our equity allocation while remaining cognizant of the importance of balancing total return and attractive risk-adjusted yield.
- Over the month, we marginally increased our allocation to equities. Our U.S. equity allocation in particular is near the highest as a percentage of our equity exposure since the Fund’s inception. We view that a combination of solid manufacturing and wage figures, as well as the prospect for fiscal stimulus and a pro-business administration make the U.S. the greatest beneficiary in the environment going forward.
- On the other hand, we expect the Fed to deliver additional monetary tightening in 2017, although at a gradual pace. Within fixed income, we continue to prefer credit and carry, which will be less vulnerable to rising interest rates than other areas of fixed income. In fact, we funded the increase in equities from emerging market debt, which is more vulnerable to a rising U.S. dollar and has more interest rate sensitivity than many other fixed income asset classes. We are maintaining our short position in U.S. five-year Treasury futures as a way to dampen exposure to a continued rise in interest rates.
- Supplemental Data Sheet - Income Builder Fund
- Quarterly Product Guide
- Tapping into proven success
- Income/rising rate blend strategy
- Sales Charge / Dealer Concession Schedule
- 2016 JPMorgan Funds Capital Gains Distribution
- Quarterly Certified Holdings - JPMorgan Income Builder Fund
- Quarterly Certified Holdings
- IRS Form 8937: JPMorgan Income Builder Fund
- Information about JPMorgan Income Builder Fund's Distributions
Total return assumes reinvestment of income.
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 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.
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.
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.