BBSA ISSUER
The JPMorgan Funds BBSA issuer, designed to closely mirror the Bloomberg Short-Term U.S. Aggregate Bond Index, focuses on U.S. dollar-denominated investment-grade taxable bonds with maturities between one and five years. With at least 80% of its assets invested in securities from the Underlying Index, it adopts a passive investment strategy, aiming to replicate the benchmark's performance rather than outperforming it. Employing a representative sampling method, the fund ensures alignment with the investment characteristics of constituent securities, including asset class exposure, industry weightings, and other fixed income attributes. It rebalances its portfolio monthly to mirror changes in the Underlying Index. Additionally, the fund may invest in mortgage pass-through securities eligible for the TBA market and high-quality, liquid short-term instruments during settlement periods. While it refrains from investing in below-investment-grade debt securities and asset classes not present in the Underlying Index, it may concentrate investments in industries reflected in the index. Furthermore, the fund holds the flexibility to invest in shares of affiliated money market funds.
BBSA DIVIDEND
The BBSA issuer, representing JPMorgan Funds, may distribute dividends to investors based on the income generated from its portfolio of U.S. dollar-denominated investment-grade taxable bonds with maturities between one and five years. As a passive investment vehicle closely tracking the Bloomberg Short-Term U.S. Aggregate Bond Index, dividend payments are influenced by the interest income earned from the securities held within the fund's portfolio. The dividends provided to investors serve as a reflection of the fixed income returns generated by the underlying assets, with distributions potentially occurring on a periodic basis, such as quarterly or annually, depending on the fund's dividend policy.
BBSA TRACKING
The BBSA issuer, part of JPMorgan Funds, employs a tracking strategy to closely mirror the performance of the Bloomberg Short-Term U.S. Aggregate Bond Index. By investing at least 80% of its assets in securities included in the Underlying Index and utilizing a passive or indexing investment approach, the fund aims to replicate the movements of the benchmark. Through representative sampling, the fund selects securities that approximate the investment characteristics of the constituent securities within the index, including asset class exposure, industry weightings, and other fixed income attributes. Regular rebalancing of the portfolio ensures alignment with changes in the Underlying Index, maintaining a high level of correlation between the fund's returns and those of the benchmark. This tracking methodology enables investors to gain exposure to the performance of the short-term U.S. aggregate bond market with minimal deviation from the index's returns.
BBSA CORRELATION
The BBSA issuer, under the umbrella of JPMorgan Funds, exhibits a strong correlation with the Bloomberg Short-Term U.S. Aggregate Bond Index. With its primary objective being to closely mimic the index's performance, the fund strategically invests at least 80% of its assets in securities included in the Underlying Index. Employing a passive investment strategy, the BBSA issuer aims to replicate the movements of the benchmark, thereby achieving a high degree of correlation with the index's returns over time. Through periodic rebalancing and representative sampling of securities, the fund ensures that its portfolio closely mirrors the investment characteristics of the constituent securities within the index. This correlation strategy provides investors with a reliable means of gaining exposure to the short-term U.S. aggregate bond market while minimizing tracking error and deviations from the benchmark's performance.
BBSA SECTOR
The BBSA issuer, a component of JPMorgan Funds, maintains exposure to various sectors within the fixed-income market as dictated by the composition of the Bloomberg Short-Term U.S. Aggregate Bond Index. With a focus on U.S. dollar-denominated investment-grade taxable bonds with maturities between one and five years, the fund's sector allocation reflects the distribution of securities within the index. This includes sectors such as U.S. Treasury bonds, government-related bonds, investment-grade U.S. corporate bonds, mortgage-backed securities (MBS), commercial mortgage-backed securities, and asset-backed securities. By tracking the sector weights of the Underlying Index, the fund ensures that its portfolio aligns with the sector diversification of the broader U.S. aggregate bond market. This approach allows investors to gain exposure to a diversified range of sectors within the fixed-income universe while maintaining correlation with the benchmark index.
BBSA EXPOSURE
The BBSA issuer, managed within the JPMorgan Funds family, provides investors with exposure to the U.S. dollar-denominated investment-grade taxable bond market, particularly focusing on securities with remaining effective maturities between one and five years. As the fund seeks to closely replicate the performance of the Bloomberg Short-Term U.S. Aggregate Bond Index, it maintains exposure to a diversified array of fixed-income assets. These include U.S. Treasury bonds, government-related bonds, investment-grade U.S. corporate bonds, mortgage-backed pass-through securities (MBS), commercial mortgage-backed securities, and asset-backed securities. Through its passive investment approach and representative sampling strategy, the fund targets specific investment characteristics such as asset class exposure, industry weightings, and other fixed-income attributes. By tracking the index's exposure, investors benefit from a portfolio that mirrors the composition and performance of the broader U.S. short-term aggregate bond market.
6 min read
