JPMorgan Municipal Income Fund - I - J.P. Morgan Asset Management


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.

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Key Points

  • Leverages broad experience and a deep research team, including 19 portfolio managers and 9 research analysts.
  • 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.1
  • Provided attractive risk-adjusted returns with lower volatility compared to its peer group.2

1Municipal Income is designated as a socially conscious fund by Morningstar.

2Source Morningstar; as of 9/30/17. 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.


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As of September 30, 2017

Quarter in review
  • The JPMorgan Municipal Income Fund (I Class Shares) performed in line with its benchmark, the Bloomberg Barclays US 1-15 Year Blend (1-17 Year) Municipal Bond Index for the quarter ended September 30, 2017.
  • The Fund’s 33% overweight to the broad Revenue sector helped as Revenue bonds returned 0.97% in the index.
  • Leasing was the top-performing sector, returning 1.70%, so our 4% overweight contributed.
  • The Fund’s overweight to the outperforming Industrial Revenue/Pollution Control Revenue (IDR/PCR) sector helped as this sector in the index returned 1.04% in the third quarter.
  • In the index, State General Obligation bonds (GOs) (2% versus 18%) and Local GOs (3% versus 14%) returned 0.97% and 1.08%; consequently, the underweight hurt Fund performance.
  • The long end of the maturity curve outperformed, with our underweight to the 12-17 maturity (12% versus 25%) bucket detracting; this portion of the curve returned 1.53%.
  • Our modest overweight to underperforming AAA-rated (21% versus 16%) bonds hurt results. This rating bucket underperformed the broad index by 29 basis points.
Looking ahead
  • We expect the Federal Reserve to raise rates in December unless inflation disappoints over the next two months. Ten-year Treasury rates are expected to end the year between 2.25% - 2.75%.
  • Fund flows were positive, bringing the yearly flows to $13 billion. This number does not include the substantial growth in assets into separately managed accounts.
  • Year-to-date supply of $286 billion is down 17% versus last year’s record of $445 billion. We expect total issuance of $375-400 billion this year.

Fees and Minimums

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Fund Managers



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, 0.45% for I Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares, 0.35% for R6 Shares and 0.35% for R6 Shares and 0.35% for R6 Shares and 0.35% for R6 Shares and 0.35% for R6 Shares0.35% for R6 Shares0.35% for R6 Shares0.35% 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 R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares, 10/31/2018 for R6 Shares and 10/31/2018 for R6 Shares and 10/31/2018 for R6 Shares and 10/31/2018 for R6 Shares and 10/31/2018 for R6 Shares10/31/2018 for R6 Shares10/31/2018 for R6 Shares10/31/2018 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.

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.