(PUB) Investing 2015

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23 Morningstar FundInvestor September 2015
Data through August 31, 2015 FINRA members: For internal or institutional use only.
JPMorgan Income Builder A Ticker
JNBAX
Yield
4.4%
Total Assets
$12,357 mil
Mstar Category
Conservative Allocation
Benchmark 1: Morningstar Moderately Cons Target Risk
Benchmark 2: Morningstar Moderate Target Risk
Morningstar Analyst Rating 05-12-15
´
Morningstar Pillars
Process ¶ Neutral
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
16.0
8.0
Historical Profile
Return
Risk
Rating
Average
High
QQQ
Neutral
1 1 1 1 1 1 1 1 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
) & & ) & * ( * Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 08-15 History
. . 9.47 6.66 8.71 9.39 8.88 9.85 10.29 10.18 9.82 NAV
. . . -25.50 39.51 12.83 -0.39 17.01 9.19 3.79 -0.96 Total Return %
. . . -12.45 24.20 3.18 -2.98 7.35 0.36 -0.51 0.42 +/- Bmark 1
. . . -3.31 17.74 0.50 -0.98 4.97 -5.12 -1.10 1.27 +/- Bmark 2
. . . 5.11 7.83 4.78 5.26 5.86 4.63 4.78 2.70 Income Return %
. . . -30.62 31.68 8.06 -5.65 11.15 4.55 -1.00 -3.66 Capital Return %
. . . 89 1 11 84 1 32 56 31 Total Rtn % Rank Cat
. . 0.33 0.47 0.51 0.41 0.48 0.51 0.45 0.48 0.27 Income $
. . . 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 Capital Gains $
. . 3.18 2.21 2.34 1.37 1.14 1.15 1.13 1.12 0.75 Expense Ratio %
. . 5.85 6.38 6.49 5.36 5.43 5.48 4.55 4.60 4.04 Income Ratio %
. . 30 82 81 49 38 40 41 41 . Turnover Rate %
. . 0 0 0 314 752 1,679 3,370 4,107 4,221 Net Assets $mil
Performance 08-31-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 3.29 1.39 -10.48 6.25 -0.39
2012 7.06 0.41 5.25 3.42 17.01
2013 3.41 -1.31 3.24 3.64 9.19
2014 2.34 3.95 -2.63 0.20 3.79
2015 2.37 -1.16 — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -4.20 -1.11 0.56 67 9,580
6 Mo -4.07 -1.15 0.23 69 9,593
1 Yr -3.37 -0.89 0.29 72 9,663
3 Yr Avg 5.71 1.09 -0.88 23 11,812
5 Yr Avg 7.40 1.09 -0.82 19 14,290
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 2.12 66 1.90 87
5 Yr (estimated) 4.49 55 1.81 92
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: -1% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -7.72
3 Yr 4.10 Avg High QQQ
5 Yr 6.42 Avg High QQQ
10 Yr — — — —
Incept 4.48
Other Measures Standard Index Best Fit Index
Alpha -0.6 0.1
Beta 0.96 0.89
R-Squared 86 90
Standard Deviation 6.15
Mean 5.71
Sharpe Ratio 0.93
Portfolio Analysis 07-31-15
Total Stocks: 348
Share change since 06-30-15 Sector YTD Ret % % Assets
TJPMorgan Prime Money Mark — — 1.66
TUnibail-Rodamco SE Real Est — 0.77
YMicrosoft Corp Technology -4.31 0.74
YWells Fargo & Co Finan Svcs -0.71 0.74
YHome Depot Inc Cnsmr Cyc 12.07 0.71
YVodafone Group PLC Comm Svcs — 0.62
YMerck & Co Inc Hlth Care -3.59 0.61
TING Groep N.V. Finan Svcs — 0.58
TGlaxoSmithKline PLC Hlth Care — 0.53
Total Fixed Income: 1847
Date of
Maturity
Amount
000
Value
$000
%
Assets
Equity Style
Style: Value
Size: Large-Cap
Fixed-Income Style
Duration: —
Quality: —
Value Measures Rel Category
Price/Earnings 16.80 0.92
Price/Book 1.84 0.86
Price/Sales 1.56 1.01
Price/Cash Flow 8.78 1.02
Dividend Yield % 3.62 1.25
Growth Measures % Rel Category
Long-Term Erngs 8.52 0.89
Book Value 2.34 1.11
Sales -6.14 7.14
Cash Flow 0.67 0.24
Historical Erngs 5.08 -2.54
Market Cap %
Giant 43.7 Small 2.0
Large 39.1 Micro 0.0
Mid 15.2 Avg $mil: 34,812
Composition - Net
Cash 2.9
Stocks 43.9
Bonds 48.8
Other 4.5
Foreign 64.0
(% of Stock)
Avg Eff Duration1 —
Avg Eff Maturity —
Avg Credit Quality —
Avg Wtd Coupon 5.71%
1 figure provided by fund as of 07-31-15
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 55.23 1.44
r BasicMat 2.68 0.58
t CnsmrCyc 8.10 0.70
y FinanSvcs 24.93 1.39
u Real Est 19.52 4.58
j Sensitive 25.32 0.71
i CommSrvs 7.69 2.03
o Energy 4.87 0.74
p Industrl 6.58 0.56
a Technlgy 6.18 0.45
k Defensive 19.45 0.76
s CnsmrDef 6.88 0.76
d Hlthcare 9.18 0.72
f Utilities 3.39 0.86
Morningstar's Take by Leo Acheson 05-12-15
JPMorgan Income Builder's advantages begin with its
proven management team. Four skippers from J.P.
Morgan's global multiasset group run the strategy, with
Mike Schoenhaut taking the lead. The managers also run
the firm's SmartRetirement target-date funds; they won
Morningstar's 2014 Allocation Fund Manager of the Year
award for earning outstanding results on that series. The
group's asset-allocation acumen has helped this fund
earn its Morningstar Analyst Rating of Bronze.
The team positions the portfolio with a high degree
of flexibility. It opportunistically shifts across a wide array
of asset classes and regions to deliver high income;
capital appreciation remains an important, though
secondary, objective. High-yield bonds and global
equities (including REITs) have each ranged from 25% to
50% of assets. Indeed, the fund has significantly more
credit risk than most conservative-allocation peers.
Preferred stock, convertibles, emerging-markets debt,
and nonagency mortgages typically fill out the remainder
of the portfolio.
The group has generally executed the strategy well,
delivering attractive results on a number of fronts. The
fund's trailing 12-month yield stands at 4.5%, well above
the typical rival's. Total returns look impressive, too: From
the fund's May 2007 inception through April 2015, it
gained 5.9% annualized, outpacing the Morningstar
Category norm by nearly 200 basis points. The strategy's
volatility consistently runs high compared with peers
thanks to itsboldportfolio, though the fund finishedahead
of the pack on a risk-adjusted basis during that stretch.
That track record, along with rock-bottom interest
rates, has drawn investor attention, helping the strategy
grow to roughly $32 billion across all of its vehicles. That
might limit the fund's ability to take meaningful positions
in less liquid pockets of the market, such as convertibles
and nonagency mortgages, which have taken up to 5%
and 10% of assets, respectively. Still, for the time being,
the fund remains a fine choice for strong-stomached
yield-seekers, who can access the A share class at a
bargain price of 0.74%.
Address: JPMorgan Trust I Minimum Purchase: $1000 Add: $50 IRA: —
Columbus OH 43240 Min Auto Inv Plan: $1000 Add: $50
800-480-4111 Sales Fees: 4.50%L
Web Address: Management Fee: 0.45%, 0.15%A
Inception: 05-31-07 Actual Fees: Mgt:0.45% Dist:0.25%
Advisor: J.P. Morgan Investment Management Inc. Expense Projections: 3Yr:$753 5Yr:$1001 10Yr:$1710
Subadvisor: None Income Distribution: Monthly
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A