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JFLEX

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Flexible Bond Fund

30 Years of Fundamental Fixed Income Investing
NAV As of 11/16/18 $9.86

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Fund Facts

Details Yields Morningstar (As of 10/31/18)
07/07/87 Inception Date
$6.60B Total Net Assets (As of 10/31/18)
GROSS 0.50%
NET 0.50%
Annual Expense Ratio
(As of fiscal year end 06/30/18)
3.55% Distribution Yield at NAV
(As of 10/31/18)
30 Day SEC Yield (As of 10/31/18)
With Waivers 2.95%
Without Waivers 2.95%
Monthly Distribution Frequency
Performance (As of 11/16/18)
0.11% 1 Day Return %
-2.06% YTD Return
Category
Intermediate-Term Bond
HIGH LIMITED
HIGH MODERATE
HIGH EXTENSIVE
MEDIUM LIMITED
MEDIUM MODERATE
MEDIUM EXTENSIVE
LOW LIMITED
LOW MODERATE
LOW EXTENSIVE
Fixed Income Style Box *
Important Morningstar Information

Overview

Client Commitment

This dynamic core bond fund leverages a bottom-up, fundamentally driven investment process designed to generate risk-adjusted outperformance and capital preservation. Throughout its 30 year history, the Fund has utilized an active and flexible approach to manage across a variety of market and rate cycles.

Why Invest in the Fund

    Dynamic Core Bond Holding

  1. By emphasizing risk-adjusted returns and capital preservation, the fund can serve as a foundation for a fixed income portfolio. The strategy uses a bottom-up, fundamentally driven investment process that seeks to identify the best opportunities across fixed income sectors, including up to 35% high-yield.
  2. Integrated Research

  3. Partnership and fluid communication between fixed income and equity analysts promote idea generation. Credit research emphasizes free cash flow generation, quality of management and security valuation.
  4. Sophisticated Risk Management

  5. Our proprietary fixed income portfolio and risk-management system, Quantum Global, is integrated into the investment process at each step. We identify and measure the sources of risk in the portfolio at multiple levels to confirm that the portfolio is positioned as intended.

Competitive Returns with Less Volatility than Majority of Peers

Flexible Bond Fund (Class I Shares) Compared to Index and Peers (10 Years: 9/30/08 – 9/30/18)

Standard Deviation measures historical volatility. Higher standard deviation implies greater volatility. As of 9/30/18, the 3 year standard deviation for Flexible Bond Fund (Class I Shares) was 2.40%.

Featured Insights

Performance

RETURNS

(As of 09/30/2018)
(As of 10/31/2018)
Inception: Jul 07, 1987 3M YTD 1YR 3YR 5YR 10YR Since Inception
Flexible Bond Fund – I Shares 0.30% -1.33% -1.10% 1.34% 2.13% 4.77% 6.43%
Bloomberg Barclays U.S. Aggregate Bond Index 0.02% -1.60% -1.22% 1.31% 2.16% 3.77% 6.14%
Inception: Jul 07, 1987 3M YTD 1YR 3YR 5YR 10YR Since Inception
Flexible Bond Fund – I Shares -0.76% -2.23% -2.13% 0.99% 1.72% 4.92% 6.37%
Bloomberg Barclays U.S. Aggregate Bond Index -0.79% -2.38% -2.05% 1.04% 1.83% 3.94% 6.10%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
View Fees and Expenses
Performance for Class I Shares that includes periods prior to 7/6/09 reflects the performance of one or more share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance.

MORNINGSTAR PERCENTILE

(As of 09/30/2018)
(As of 10/31/2018)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 45 58 49 22 11
Intermediate-Term Bond Category
Rank/Count
442/1076 567/987 463/939 196/826 23/198
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 59 63 56 29 12
Intermediate-Term Bond Category
Rank/Count
574/1061 595/971 513/927 257/813 23/199

CALENDAR YEAR PERFORMANCE

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.
This graph compares fund performance to that of the fund’s Morningstar category average and benchmark(s).

RETURNS-BASED STATISTICS

(As of 10/31/18 CLASS I SHARES)

RISK / REWARD
VS. BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

3 YEAR 5 YEAR
Information Ratio -0.07 -0.17
Alpha 0.07 0.11
Tracking Error 0.58 0.65
Beta 0.89 0.88
R-Squared (%) 95.91 94.72

UP AND DOWN MARKET CAPTURE (%)
VS. BLOOMBERG BARCLAYS U.S. AGGREGATE BOND INDEX

3 YEAR 5 YEAR
Up Capture Ratio 91.01 89.41
Down Capture Ratio 89.64 86.86

STANDARD DEVIATION

3 YEAR 5 YEAR
Flexible Bond Fund 2.47 2.46
Bloomberg Barclays U.S. Aggregate Bond Index 2.71 2.72

SHARPE RATIO

3 YEAR 5 YEAR
Flexible Bond Fund 0.05 0.49
Bloomberg Barclays U.S. Aggregate Bond Index 0.06 0.48

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 06/30/18)

CLASS I SHARES
Management Fees 0.40%
12b-1 Fees -
Other Expenses 0.10%
Total Gross Expenses 0.50%
Waivers 0.00%
Total Net Expenses 0.50%
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 11/1/19.

Characteristics

TOP HOLDINGS

(As of 10/31/2018)

% of Fund
United States Treasury Note/Bond, 2.88%, 08/15/28 3.26
United States Treasury Note/Bond, 2.88%, 09/30/23 2.21
United States Treasury Note/Bond, 2.75%, 11/15/47 1.98
United States Treasury Note/Bond, 3.00%, 08/15/48 1.95
United States Treasury Note/Bond, 2.88%, 10/31/20 1.67
Freddie Mac Gold Pool, 4.50%, 08/01/48 1.31
Freddie Mac Gold Pool, 4.00%, 08/01/48 1.01
BBCMS 2018-TALL Mortgage Trust, 3.00%, 03/15/37 0.90
United States Treasury Note/Bond, 3.00%, 02/15/48 0.89
Fannie Mae Pool, 4.00%, 07/01/48 0.82
TOTAL 16.00

PORTFOLIO CHARACTERISTICS

(As of 10/31/18)

FUND INDEX
Number of Holdings
Debt Issues
484
10133
Portfolio Turnover Rate
(1-year trailing)
212.53%
-
Weighted Average Maturity
(years)
9.00
8.33
Effective Duration
(years)
5.38
5.94

DEVELOPED VS. EMERGING MARKET

(As of 10/31/18)

% OF FUND % OF INDEX
U.S. 91.37 91.42
Non-U.S. Developed 8.09 5.41
Non-U.S. Emerging 0.05 1.62
Cash & Equivalents 0.49 -

CREDIT QUALITY OF FIXED INCOME HOLDINGS

(As of 10/31/18)

% OF FUND % OF INDEX
Aaa 49.86 72.29
Aa 1.55 3.73
A 5.17 10.76
Baa 26.24 13.21
Ba 12.56 0.01
B 3.04 -
NOT RATED 1.09 -
Bond credit quality ratings provided by Barclays and reflect the middle rating received from Moody's, Standard & Poor's and Fitch, where all three agencies have provided a rating. If only two agencies rate a security, the lowest rating is used. If only one agency rates a security, that rating is used. Ratings are measured on a scale that ranges from Aaa (highest) to D (lowest).

SECTOR ALLOCATION

(As of 10/31/18)

% OF FUND % OF INDEX
Credit-Investment Grade 27.80 24.76
MBS 26.45 28.20
Treasuries 14.63 38.27
Credit-High Yield 10.27 0.01
ABS 9.37 0.52
Bank Loans 4.91 -
CMBS 3.61 1.91
CMO 1.61 -
Non-US Collateralized 0.58 0.05
Government Related 0.28 5.40
Cash & Equivalents 0.49 -

MATURITY BREAKDOWN OF FIXED INCOME HOLDINGS

(As of 10/31/18)

% OF FUND % OF INDEX
< 1 yr 1.78 0.84
1 - 3 yrs 14.48 21.68
3 - 5 yrs 12.70 17.63
5 - 7 yrs 20.03 13.88
7 - 10 yrs 31.49 29.34
10 - 20 yrs 8.26 4.79
> 20 yrs 10.77 11.84

REGIONAL ALLOCATION

(As of 10/31/18)

% OF FUND % OF INDEX
North America 97.68 92.59
Europe 1.41 3.48
Africa/Mideast 0.42 0.05
Cash & Equivalents 0.49 -

Commentary & Literature

3Q18 Portfolio Commentary Highlights

  • The Fund outperformed its benchmark during the quarter
  • Our out-of-index allocation to high-yield corporate bonds led outperformance.
  • We remain constructive on the U.S. economy and intend to remain opportunistic; however, given the late stages of the credit cycle, we believe some caution is warranted.

Read The Full Commentary