JPMorgan High Yield Opportunities Fund

C000172992 Fund Overview

JPMorgan High Yield Opportunities Fund is a US mutual fund managed by JPMorgan Trust IV, categorised as Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: JPMorgan Trust IV
• Category: Corporate Bond
• Assets under management: $28.96M
• SEC CIK: 0001659326
• SEC series ID: S000055001
• Share class ID: C000172992

C000172992 Investment Objective and Strategy

JPMorgan High Yield Opportunities Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by JPMorgan Trust IV.

Investment objective

The Fund seeks a high level of current income.

Principal investment strategy

The Funds principal investment strategy is to invest in high yield, high risk corporate debt securities and instruments from developed markets. The Fund will allocate its assets between U.S. and non-U.S. developed markets depending on investment opportunities. In addition to high yield corporate debt securities and instruments, the Fund also may invest in other types of high yield investments as discussed below. Under normal circumstances, the Fund invests at least 80% of its Assets in High Yield Investments. Assets means net assets plus the amount of borrowings for investment purposes. High Yield Investments means securities and instruments that are rated below investment grade or unrated at the time of purchase that the Funds adviser, J.P. Morgan Investment Management Inc. (the adviser or JPMIM) believes to be of comparable quality and investments that have similar economic characteristics to such securities.

High yield securities and instruments are also referred to as junk bonds or below investment grade bonds. Some examples of High Yield Investments include bonds, other debt securities, loan assignments and participations (Loans), commitments to purchase loan assignments (Unfunded Commitments), convertible securities and preferred stocks, and private placements, that are rated below investment grade or unrated, and derivatives that are used as substitutes for such securities or other types of high yield investments. High Yield Investments also include investment companies such as exchange traded funds (ETFs) that primarily invest in high yield securities and investments. Such securities and investments may be issued in both U.S. and non-U.S. markets including emerging markets. Such securities and investments may be issued by small capitalization and private companies.

Consistent with the Funds opportunistic strategy, the Funds investments may be of any maturity. The Fund may invest up to 100% of the Funds total assets in below investment grade or unrated securities and investments. Such investments may include so called distressed debt. Distressed debt includes securities of issuers experiencing financial or operating difficulties; securities where the issuer has defaulted in the payment of interest or principal or in the performance of its covenants or agreements; securities of issuers that may be involved in bankruptcy proceedings, reorganizations or financial restructurings; or securities of issuers operating in troubled industries. The Fund may invest in Loans and Unfunded Commitments. Loans will typically consist of senior secured floating rate loans (Senior Loans), but may also include unsecured loans, second lien loans or more junior (Junior Loans) and bridge loans.

Loans may be issued by obligors in the U.S. or in non-U.S. developed or emerging markets. The Funds investments will include non-dollar denominated investments. The Fund mainly invests in securities and investments issued in developed markets and currencies as part of its principal investment strategy but may invest selectively in emerging markets. The Fund will seek to hedge and manage its non-U.S. dollar currency exposure to U.S. dollars but may not always do so. In addition to direct investments in securities, derivatives, which are instruments that have a value based on another instrument, exchange rate or index, may be used as substitutes for securities in which the Fund can invest. The Fund may use futures contracts, options and swaps to hedge various investments, for risk management and/or to increase income or gain to the Fund.

In particular, the Fund may invest in swaps structured as credit default swaps related to individual Loans or other securities or indexes of Loans or other securities to gain exposure to such Loans and other securities, to mitigate risk exposure or to manage cash flow needs. Additionally, the Fund may use foreign currency derivatives including forward foreign currency contracts to establish or adjust the Funds currency exposure and to manage currency risk and to hedge non-dollar denominated investments back to the U.S. dollar. Although the Funds principal investment strategy is to invest in high yield corporate debt securities and instruments, it may also invest in common stock, warrants and options from time to time. In addition, the Fund may acquire and hold such securities (or rights to acquire such securities) in connection with an amendment, waiver, conversion or exchange of fixed income securities, in connection with the bankruptcy or workout of distressed fixed income securities, or upon the exercise of a right or warrant obtained on account of a fixed income security.

The Fund may also invest in other types of equity investments, cash equivalents and other investment grade securities. The Fund may invest in ETFs in order to gain exposure to particular high yield investments or markets. The Fund may invest in actively managed ETFs or passively managed ETFs that seek to track the performance of a particular market index or security. These indexes include not only broad-based market indexes but more specific indexes as well, including those relating to particular sectors, markets, regions or industries. For temporary defensive purposes, any portion of the Funds total assets may be invested in cash and cash equivalents including money market funds for which JPMIM provides investment advisory services. In determining what investments to buy and sell for the Fund, the adviser uses a bottom-up, security selection process utilizing proprietary fundamental research to identify markets and securities for potential investment by the Fund.

The adviser focuses on security selection, and risk adjusted relative value within issuers capital structures and across industries to create a portfolio that is diversified across a range of sectors and securities. Generally, the adviser will consider selling a security when, based on fundamental credit analysis and the considerations described above, the adviser believes that based on market conditions and its security selection process, the securitys expected risk-adjusted return is below that of other investment opportunities.

C000172992 Costs and Fees

C000172992 costs about $60 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.60%
• Gross expense ratio: 1.33%
• Portfolio turnover: 35%
• Brokerage commissions: 0.06 bps of average net assets (SEC N-CEN)

C000172992 Cashflows

Over the 12 months to 2019-11, JPMorgan High Yield Opportunities Fund had net inflows of $329.88K, from monthly SEC N-PORT filings.

C000172992 Debt Constituents

No individual debt constituents are reported in JPMorgan High Yield Opportunities Fund's latest SEC N-PORT filing.

C000172992 Prospectus and SEC Filings

Official JPMorgan High Yield Opportunities Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-07-11
• Prospectus (485BPOS) — filed 2018-07-20
• Prospectus (485BPOS) — filed 2017-07-21
• Portfolio holdings (N-PORT) — filed 2020-01-28
• Annual census (N-CEN) — filed 2019-05-13

Related Funds

Other Corporate Bond funds tracked on ABC INVEST:

• First Trust Preferred Securities and Income ETF (FPE)
• Nuveen Preferred Securities and Income Fund (NPSAX)
• Spectrum Preferred and Capital Securities Income Fund (PNARX)
• Invesco Variable Rate Preferred ETF (VRP)
• First Trust Institutional Preferred Securities and Income ETF (FPEI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.