JPMorgan Core Bond A (PGBOX)
The investment objective of JPMorgan Core Bond fund is to maximize total return. This JPM fund is designed to maximize total return by investing in a portfolio of investment grade intermediate- and long-term bonds. This popular bond fund will invest at majority of assets (>80%) in bonds. The fund’s average weighted maturity will ordinarily range between 4 and 12 years.
Fund Details
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| JPMorgan Core Bond A fund |
- Fund Inception Date: May 1, 1992
- Ticker Symbol: PGBOX
- CUSIP: 4812C0357
- Beta (3yr): 0.73
- Rank in category (YTD): 25%
- Category: Intermediate-Term Bond
- Distribution Rate: 3.50%
- Capital Gains: 0%
- Expense Ratio: 0.74%
- Net Assets: $ 21.14 billion
- Number of Years Up: 16 years
- Number of Years Down: 2 years
- Average Duration: 4.33 years
- Average Maturity: 5.68 years
- Annual Turnover Rate: 24.0%
Douglas S. Swanson is the current lead fund’s manager of this JP Morgan fund. He has managed the Select Class of this fund (WOBDX) that was introduced to public earlier in 1991. Later, the A Class of this fund was introduced in May 1992. The fund dividend yield is 3.50% and is distributed on monthly basis. The recent payment of the dividend was on October 31, 2011 ($0.03). Information gathered from this fund’s website, there is a short term estimated capital gain of $0.00 and a long term estimated capital gain of $0.02 to be paid in December 2011.
The fund’s annual expense ratio is 0.74%. The annual holdings turnover as of October 31, 2011 is 24.0%; this figure is lower compared to the average in the Intermediate-Term Bond category (188.24%). Morningstar has rated this fund with a 3-star rating and silver rating. Since its inception 18 years ago, this intermediate term bond fund has returned in positive return for 16 years. The best 1-year total return was achieved in 2000 with 11.83%. The YTD return is 6.09%. Based on the load adjusted return, this fund has returned 1.20% over the past year and 6.04% over the past five years.
The minimum initial investment to invest in brokerage account of this PGBOX fund is $1,000. The minimum subsequent investment is $25. The same amount applies if you are interested in investing in IRA account. There are 112 brokerages that provide this JP Morgan fund. They are Merrill Lynch, Edward Jones, JP Morgan, Scottrade Load, E Trade No Load Fee, Ameriprise Brokerage, Schwab Retail, Protected Investors of America, etc. Investor can choose from the other classes of this fund, such as Class B (OBOBX), Class C (OBOCX), Select Class (WOBDX).
This PGBOX fund has a total of 3779 holdings as of September 2011. The yield to maturity is 2.85%. The portfolio breakdown is Collateralized Mortgage Obligations (35.7%), U.S. Treasury Obligations (25.7%), Corporate Bonds (16.1%), Mortgage Pass-Through Securities (13.1%), Asset Backed Securities (4.1%), Commercial Mortgage-Backed Securities (2.4%), U.S. Government Agency Securities (1.6%) and Other (1.3%).
The main investment risks for investing in this fund include Interest Rate Risk, Credit Risk, Government Securities Risk, Asset-Backed, Mortgage Related and Mortgage-Backed Securities Risk, Foreign Issuer Risks, Redemption Risk, etc.
Pros:
- Popular among investors
- It has a silver rating
- Class A has a sales load
Disclosure: No Position
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