3 / 5 Stars
3 3 5 3 3
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#111 in Intermediate-Term Bond
U.S. News evaluated 280 Intermediate-Term Bond Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned -0.08 percent over the past year, 3.74 percent over the past three years, 5.62 percent over the past five years, and 4.67 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||1.8%|
|3 Years (Annualized)||3.7%|
|5 Years (Annualized)||5.6%|
|10 Years (Annualized)||4.7%|
The JPMorgan Core Bond Fund sticks to investment-grade debt, including lots of mortgage-backed bonds and
Management is known for its conservative approach in selecting intermediate- and long-term debt. "More than 80 percent of the fund is either backed by Uncle Sam or rated AAA," says Morningstar. Management remains extremely risk-conscious (it avoided the worst of the subprime bust because of its high-quality holdings) and rarely makes big interest-rate bets. As of November 2010, more than half of the fund's investments were in mortgage-backed bonds—much higher than its Morningstar category average—and the fund also holds a fair amount of U.S. treasuries. The fund has returned -0.08 percent over the past year and 3.74 percent over the past three years.
In mid-2009, the fund swallowed up JPMorgan Intermediate Term bond fund, which added just under $1 billion in assets, according to Morningstar. To control risk, the fund aims for diversification. Management favors bonds in a wide range of sectors rather than large, individual holdings. "We're trying to add value, but we're also not taking huge risks relative to the benchmark either," says Doug Swanson, portfolio manager for the fund. The fund has returned 5.62 percent over the past five years and 4.67 percent over the past decade.
According to the fund's prospectus, management "analyzes four major factors in managing and constructing the fund: duration, market sectors, maturity concentrations, and individual securities." Says Swanson: "We're trying to put a portfolio together that will do well in a lot of different environments."
Role in Portfolio
Morningstar assigns the fund a "core" role in a portfolio.
Doug Swanson has been with the fund since its inception in 1992. Christopher Nauseda became a comanager of the fund in 2006.
JPMorgan Core Bond Fund has an expense ratio of 0.74 percent.
The fund's prospectus allows management to invest a "significant portion or all of its assets in mortgage-backed securities."