HLTZX — JPMorgan Sustainable Municipal Income Fund

Data updated: 2023-07-27

HLTZX — JPMorgan Sustainable Municipal Income Fund. Municipal - National Bond · $268.45M AUM. Holdings, fees, performance and SEC filings.

HLTZX Fund Overview

HLTZX — JPMorgan Sustainable Municipal Income Fund is a US mutual fund managed by JPMorgan Trust II, categorised as Municipal - National 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 II
Category: Municipal - National Bond
Assets under management: $268.45M
1-year return: -0.5%
Ticker: HLTZX
SEC CIK: 0000763852
SEC series ID: S000003497
Share class ID: C000195051

HLTZX Investment Objective and Strategy

JPMorgan Sustainable Municipal Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by JPMorgan Trust II.

Investment objective

The Fund seeks current income exempt from federal income taxes.

Principal investment strategy

The Fund invests in a portfolio of municipal bonds, including municipal mortgage-backed and asset-backed securities. While current income is the Funds primary focus, it seeks to produce income in a manner consistent with the preservation of principal. Under normal circumstances, the Fund invests at least 80% of its Assets in municipal bonds, the income from which is exempt from federal income tax. This is a fundamental policy. For the purposes of this policy, Assets means net assets, plus the amount of borrowings for investment purposes. The Fund also invests in municipal mortgage-backed and asset-backed securities, as well as restricted securities. The Fund may invest a significant portion or all of its assets in municipal mortgage-backed securities at the Advisers discretion. The securities in which the Fund invests may have fixed rates of return or floating or variable rates.

Municipal bonds are debt securities with maturities of 90 days or more at the time of issuance issued by states, territories and possessions of the United States, including the District of Columbia, and their respective authorities, political subdivisions, agencies and instrumentalities, the interest on which is exempt from federal income tax. The securities are issued to raise funds for various public and private purposes. Municipal bonds include private activity and industrial development bonds, tax anticipation notes and participations in pools of municipal securities. Up to 100% of the Funds assets may be invested in municipal bonds, the interest on which may be subject to the federal alternative minimum tax for individuals. As a matter of fundamental policy, the Fund will not invest more than 25% of its total assets: (i) in securities within a single industry; or (ii) in securities of governmental units or issuers in the same state, territory or possession.

However, from time to time, the Fund will invest more than 25% of its total assets in municipal housing authority obligations. The Funds average weighted maturity will range from three to 15 years, although the Fund may shorten its average weighted maturity to as little as two years if appropriate for temporary defensive purposes. Average weighted maturity is the average of all the current maturities (that is, the term of the securities) of the individual bonds in a Fund calculated so as to count most heavily those securities with the highest dollar value. Average weighted maturity is important to investors as an indication of a Funds sensitivity to changes in interest rates. Usually, the longer the average weighted maturity, the more fluctuation in share price you can expect. Under normal circumstances, the fund invests the majority of its assets in securities whose use of proceeds, in the Advisers opinion, provide positive social or environmental benefits.

In order to identify and invest in bonds that provide positive social or environmental benefits, the Adviser determines and assesses each bonds intended use of proceeds. The Adviser will generally view bonds that finance affordable housing, healthcare, municipal water & sewer, education, mass transit, not for profits and issuer designated green bonds as promoting positive social or environmental benefits. In addition to the uses of proceeds noted above, the Adviser may identify additional uses of bond proceeds that it believes will provide positive social or environmental benefits and may invest in such bonds as part of the Funds investment strategy. The use of proceeds determination for securities purchased by the Fund will be made at the time of purchase. If the use of proceeds of a security changes after the time of purchase so as to no longer provide positive social and/or environmental benefits, the Fund may continue to hold the security.

The Fund may also invest in zero-coupon securities. Investment Process: The Adviser buys and sells securities and investments for the Fund based on its view of individual securities and market sectors. Taking a long-term approach, the Adviser looks for individual fixed income investments that it believes will perform well over market cycles, the majority of which will provide positive social or environmental benefits. The Adviser is value oriented and makes investment decisions after performing a risk/reward analysis that includes an evaluation of interest rate risk, credit risk, duration, liquidity, any security pledge, and a review of the securitys attributes such as the coupon, maturity and any redemption and tender provisions. The Advisers risk/reward analysis along with its use of proceeds assessment allows the Adviser to collectively evaluate those criteria when selecting securities for purchase.

The Adviser utilizes a proprietary framework to monitor the portfolios overall investment in bonds that have been designated as providing positive social or environmental benefits. Through the framework, the Adviser assesses characteristics of bond issuances and their proceeds using third party data and/or internal research. The proprietary framework, as well as the Advisers views on municipal bond use of proceeds, are periodically reviewed internally. Generally, the Adviser determines whether or not to sell a security by looking at a number of factors such as the securitys attributes (i.e., coupon, maturity and redemption/tender provisions), liquidity, relative value and the credit quality of the security. The Adviser also factors in the overall investment strategy of the Fund, including its positioning relative to the benchmark, its duration and its credit strategy, as well as the Advisers interest rate outlook.

HLTZX Performance

Total returns for HLTZX (as of 2026-10-01), from SEC filings.

Period	Total return
1 year	-0.5%
3 years (annualised)	-1.1%

HLTZX Risk Information

Risk metrics for HLTZX, derived from monthly returns in SEC filings.

1-year volatility (annualised): 7.2%

HLTZX Costs and Fees

HLTZX costs about $35 per $10,000 invested per year in fund expenses.

Net expense ratio: 0.35%
Gross expense ratio: 0.50%
Portfolio turnover: 37%
Brokerage commissions: 0.01 bps of average net assets (SEC N-CEN)

HLTZX Cashflows

Over the 12 months to 2023-05, JPMorgan Sustainable Municipal Income Fund had net outflows of $29.58M, from monthly SEC N-PORT filings.

Month	Net flow
2023-05	−$4.97M
2023-04	$1.81M
2023-03	$9.46M
2023-02	−$1.46M
2023-01	$6.74M
2022-12	$14.76M

HLTZX Debt Constituents

No individual debt constituents are reported in JPMorgan Sustainable Municipal Income Fund's latest SEC N-PORT filing.

HLTZX Prospectus and SEC Filings

Official JPMorgan Sustainable Municipal Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Municipal - National Bond funds tracked on ABC INVEST:

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.