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JP Morgan fund not paying interest and dividends
Old 11-21-2022, 05:59 PM   #1
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JP Morgan fund not paying interest and dividends

I have shares of JSRAX which is a mixed stock and bond fund-of-funds in an IRA that was transfered from a 401k after I left the company and JP Morgan was the corporate 401k manager. I was going through my records and saw that it hasn't paid any interest or dividends for 2022. I have been reinvesting and not taking the income but I was looking at the records to calculate the rate of return.

It usually pays about 3 - 4 % in interest and dividends quarterly. Each December there have been capital gains payouts for the years that I have had it, but I'm not expecting any this year as it is down about 14% from last December. I called JP Morgan and asked why there were not any payouts. The person didn't know anything about that, but did tell me that an unspecified payout was coming in December.

I am wondering how they can just not make the payouts and not say anything, since the earnings come from the underlying bonds and dividend paying stocks. I'm waiting to see how much the payout is in December and then possibly I'll transfer the IRA to another broker and swap out the fund for a better one.

Has anyone had a similar experience?
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Old 11-21-2022, 08:06 PM   #2
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Originally Posted by MichaelL View Post
but I'm not expecting any this year as it is down about 14% from last December.
The fund being down for the year has very little to do with the end of year distributions. According to JP Morgan estimates, it should be around 0.22 per share for 2022 for JSRAX The fund still still sold a lot of shares (for a gain) during the year.
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Old 11-21-2022, 09:00 PM   #3
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The fund being down for the year has very little to do with the end of year distributions. According to JP Morgan estimates, it should be around 0.22 per share for 2022 for JSRAX The fund still still sold a lot of shares (for a gain) during the year.
I'm saying that I'm not expecting any capital gains distributions. I certainly expect interest and dividends. 0.22 per share represents a typical 4th Qt. interest and dividend distribution. The question is what happened to my other 3 distributions for the first 3 Qts of the year?
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Old 11-21-2022, 09:27 PM   #4
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One time long ago I wasn’t paid a distribution on one of my mutual funds and I had to call and they tracked it down. Never happened again.

So you probably need to call your broker.
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Old 11-21-2022, 09:31 PM   #5
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One time long ago I wasn’t paid a distribution on one of my mutual funds and I had to call and they tracked it down. Never happened again.

So you probably need to call your broker.
I did call the broker. The person I talked to didn't know what happened. They said that they'd look into it. The quarterly statements don't show any distributions. They didn't pay any. It's not that my payment went missing. They just didn't pay any.
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Old 11-21-2022, 09:35 PM   #6
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Originally Posted by clobber View Post
The fund being down for the year has very little to do with the end of year distributions. According to JP Morgan estimates, it should be around 0.22 per share for 2022 for JSRAX The fund still still sold a lot of shares (for a gain) during the year.
I read the document that you linked to. It does show the .22 as a long term capital gain. So the question now is where are the 4 interest and dividend payments. I was usually getting 3 - 4% return not counting capital gains.
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Old 11-21-2022, 09:55 PM   #7
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All the documentation I can find online shows there were no distributions since 2021.
It was a bad year for income funds and this one is a fund of income funds.

Assuming you bought this fund of funds for income, with all the management expenses, 12B-1 charges, no distributions… I would drop this fund like a hot dish and build a ladder with today’s high yields. You likely can get 6%+ in a taxable ladder right now.
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Old 11-21-2022, 09:57 PM   #8
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All the documentation I can find online shows there were no distributions since 2021.
It was a bad year for income funds and this one is a fund of income funds.
Well that explains it.
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Old 11-21-2022, 10:05 PM   #9
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Originally Posted by COcheesehead View Post
All the documentation I can find online shows there were no distributions since 2021.
It was a bad year for income funds and this one is a fund of income funds.

Assuming you bought this fund of funds for income, with all the management expenses, 12B-1 charges, no distributions… I would drop this fund like a hot dish and build a ladder with today’s high yields. You likely can get 6%+ in a taxable ladder right now.
Yeah that's what I'm thinking. I'll take the distribution in December, and then transfer the money to another account and reinvest it all. This was a surprise. In other years the payouts were decent.
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Old 11-22-2022, 07:16 AM   #10
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I'm surprised it isn't incumbent and a requirement for a fund to notify its investors when there is a change in the dividend/dividend schedule !!!!!
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Old 11-22-2022, 09:18 AM   #11
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Originally Posted by COcheesehead View Post
All the documentation I can find online shows there were no distributions since 2021.
It was a bad year for income funds and this one is a fund of income funds.

Assuming you bought this fund of funds for income, with all the management expenses, 12B-1 charges, no distributions… I would drop this fund like a hot dish and build a ladder with today’s high yields. You likely can get 6%+ in a taxable ladder right now.
It's a curious thing. It's understandable that capital gains distributions will vary year-year. And I also saw that no divs were paid in 2022, but were consistent in 2021.

But even in a bad year for an income fund, wouldn't there still be dividends, and would those not need to be distributed? Or does being a "fund of funds" warp this in some way?

-ERD50
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Old 11-22-2022, 09:27 AM   #12
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It's a curious thing. It's understandable that capital gains distributions will vary year-year. And I also saw that no divs were paid in 2022, but were consistent in 2021.

But even in a bad year for an income fund, wouldn't there still be dividends, and would those not need to be distributed? Or does being a "fund of funds" warp this in some way?

-ERD50
I just wondered if the expenses ate the small amount of dividends.
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Old 11-22-2022, 10:33 AM   #13
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I'm surprised it isn't incumbent and a requirement for a fund to notify its investors when there is a change in the dividend/dividend schedule !!!!!
I asked that question to the person who I talked to at JP Morgan. They didn't have an answer. I told him that he should be asking the fund manager what is going on and that I was really disappointed and would likely close my account.
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Old 11-22-2022, 10:38 AM   #14
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I just wondered if the expenses ate the small amount of dividends.
In past years the dividends were pretty good and so were the capital gains. This year my return will be about 1.55%. Previously the dividends were 3 - 4% and with capital gains the return was much higher. This is an income fund with no income. I'm not sure what is going on with these people but it doesn't reflect well on them.
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Old 11-22-2022, 10:47 AM   #15
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In past years the dividends were pretty good and so were the capital gains. This year my return will be about 1.55%. Previously the dividends were 3 - 4% and with capital gains the return was much higher. This is an income fund with no income. I'm not sure what is going on with these people but it doesn't reflect well on them.
In today’s fixed income environment, I’d be gone in a heartbeat.
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Old 11-22-2022, 10:51 AM   #16
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In today’s fixed income environment, I’d be gone in a heartbeat.
I've been laddering CDs, agency bonds and treasuries with the money that was sitting in a savings account. I will probably do the same with this money in January.
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Old 11-22-2022, 10:53 AM   #17
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I've been laddering CDs, agency bonds and treasuries with the money that was sitting in a savings account. I will probably do the same with this money in January.
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Old 11-22-2022, 11:00 AM   #18
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I took a look at the Annual and Semi-Annual Reports available at https://am.jpmorgan.com/JPMorgan/TAD...?site=JPMorgan

The one thing that I noticed in 2022 was the large amount of net redemptions by shareholders in the first half of 2022. IMHO, This would be consistent with a bond fund in a rising interest rate environment.

The question that I have, which I have been trying to track down, is do any of the gains/losses inherit in these capital share transactions (ie net redemptions) satisfy the requirement to distribute net income of the fund, or are these treated separately.

I suspect that at a minimum, if any assets sold are held by the fund SHORT TERM, and are sold for a loss to satisfy redemptions, then this would offset dividend income received by the fund.

Perhaps someone more knowledgeable than me can shed light on this.

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Old 11-22-2022, 12:39 PM   #19
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I asked that question to the person who I talked to at JP Morgan. They didn't have an answer. I told him that he should be asking the fund manager what is going on and that I was really disappointed and would likely close my account.
The person you are talking with probably doesn't know who the fund manager is. They're likely not an employee of the fund company but an agent working for a provider to the fund company. You would be best served putting your issue on paper and save the trail. You might want to look at any correspondence from the fund; it's unusual for it not to be pre-announceed if dividends aren't being paid.
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Old 11-22-2022, 01:00 PM   #20
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The person you are talking with probably doesn't know who the fund manager is. They're likely not an employee of the fund company but an agent working for a provider to the fund company. You would be best served putting your issue on paper and save the trail. You might want to look at any correspondence from the fund; it's unusual for it not to be pre-announceed if dividends aren't being paid.
At this point it doesn't matter. Their quarterly statements show that they didn't make any disbursements so far this year and that they are only making a .22 cent per share disbursement in December which represents 1.5%. It isn't worth keeping.
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