JPMorgan Municipal Income Fund - A - J.P. Morgan Asset Management
CLOSE

As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.

JPMORGAN MUNICIPAL INCOME FUND

Tax-exempt income with value.

By focusing on relative value across the yield curve, JPMorgan Municipal Income Fund seeks to enhance income exempt from federal income taxes.

Fund Story >  
Commentary >  

 

Key Points

Expertise
  • Leverages broad experience and a deep research team, including 18 portfolio managers and 9 research analysts.
Portfolio
  • Enhances yield by focusing on relative value of investment-grade municipal bonds across the yield curve.
  • Offers exposure to municipal bonds whose use of proceeds aim to provide positive social or environmental benefits, making it one of the few municipal ESG funds in the industry.
Success
  • Provided attractive risk-adjusted returns with lower volatility compared to its peer group.1

Source: 1Morningstar; as of 6/30/17. Morningstar category: US Muni National Intermediate Bond. Sharpe ratio is a measurement of a fund’s returns relative to its risks. Higher numbers for risk-adjusted returns are better. Standard deviation is a measure of volatility and gauges the variance of a manager’s return over its average or mean. Lower numbers for volatility are better.

Performance

Performance widget loading ...

Commentary

As of June 30, 2017

Quarter in review
  • The JPMorgan Municipal Income Fund (I Class Shares) underperformed its benchmark, the Bloomberg Barclays U.S. 1-15 Year Blend (1-17) Municipal Bond Index, for the quarter ended June 30, 2017.
  • The Fund’s overweight to the outperforming Housing and IDR/PCR (industrial revenue/pollution control revenue) sectors helped as these sectors returned 1.91% and 1.95% in the index.
  • The Fund’s significant overweight to the broad Revenue sectors versus the broad GO (general obligation) sector helped; revenue bonds outperformed GOs by 29 basis points (bps) in the index.
  • An underweight to short-duration Prerefunded bonds contributed as this sector underperformed by 109 bps in the index.
  • The Fund’s slightly shorter duration (4.6 years versus 4.9 years) hurt as rates mostly declined across the curve; yields rose 4 bps in two years, fell 20 bps in five years and 26 bps in 10 years and 30 years.
  • In the index, Transportation and Hospital sectors outperformed the broad index by 20 and 28 bps, so our underweight hindered performance.
  • An overweight to short relative duration AAA-rated bonds hurt. This rating bucket underperformed the broad index by 14 bps.
Looking ahead
  • We expect the Federal Reserve to raise rates in September and begin paring its balance sheet. Ten-year Treasury rates are expected to end the year at between 2.5% - 3.0%.  
  • Fund flows have been positive and demand for separately managed accounts, especially in the short end, has been strong.
  • Muni bond supply is down from last year and estimated at $325-$350 billion for the year. The uptick in new money issuance should continue for the balance of the year as state and local governments make needed investments in aging infrastructure, which had been de-prioritized since the recession.

Fees and Minimums

Fees widget loading ...

Portfolio

Portfolio widget loading ...

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 0.70% for A Shares, 1.25% for C Shares and 0.45% for I 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 and 10/31/2018 for I 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.

The quoted performance of the Fund includes performance of a predecessor fund/share class prior to the Fund's commencement of operations. Please refer to the current prospectus for further information.

Mutual funds have fees that reduce their performance: indexes do not. You cannot invest directly in an index.

The Bloomberg Barclays U.S. 1-15 Year Blend (1-17) Municipal Bond Index represents the performance of municipal bonds with maturities from 1 to 17 years.

The performance of the Lipper Intermediate Municipal Debt 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 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.

Some investors may be subject to the Federal Alternative Minimum Tax and to certain state and local taxes.
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.

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.