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JPMorgan Equity Index I HLEIX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 75.16  /  0.46 %
  • Total Assets 9.4 Bil
  • Adj. Expense Ratio
    0.200%
  • Expense Ratio 0.200%
  • Distribution Fee Level Low
  • Share Class Type Institutional
  • Category Large Blend
  • Investment Style Large Growth
  • Min. Initial Investment 1,000,000
  • Status Open
  • TTM Yield 1.30%
  • Turnover 15%
unlocked

Morningstar’s Analysis HLEIX

Medalist rating as of .

JPMorgan Equity Index I’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver.

Our research team assigns Silver ratings to strategies that they have a high conviction will outperform the relevant index, or most peers, over a market cycle on a risk-adjusted basis.

JPMorgan Equity Index I’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.

The strategy merits a High Process Pillar rating. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People, Process and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Rated on Published on

The portfolio managers reinvest dividends as they are paid and use derivatives to equitize cash to keep pace with the benchmark.

Associate Analyst Mo'ath Almahasneh

Mo'ath Almahasneh

Associate Analyst

Process

High

Securities lending has historically been employed by the fund to generate additional income, which has helped reduce some of its annual expense ratio.

The fund’s portfolio closely resembles its average category peer in both style and sector allocations. Capturing the same opportunity set as its active peers emphasizes the effect of the fund’s low fee, giving it a durable advantage over the long run.

This fund is well diversified compared with its peers. Its top 10 holdings represent 24% of the portfolio, much lower than its average peer. However, the portfolio can become top-heavy during the market’s manic episodes, though it remains more diversified than the category average. Over shorter time frames, investors’ enthusiasm for a particular stock or sector can make the portfolio top-heavy as it tilts toward recent winners. For example, the fund’s top 10 holdings ballooned to 30% of the portfolio in November 2021 before markets reversed in 2022.

Note: The Process Pillar rating and analysis are indirectly assigned by an analyst. When an analyst covers a passively managed vehicle that tracks a particular index, Morningstar associates the Process Pillar rating assigned to that vehicle with the index concerned. Morningstar then maps the Process Pillar associated with a given index to any other uncovered passive strategies that track the same index. This ensures that the analyst’s view is leveraged whenever available and promotes consistency when analyzing passive vehicles associated with a given index.

Rated on Published on

JPMorgan’s equity team is comparable to peers, resulting in an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

There are four managers listed on the fund: Michael Loeffler, Alex Hamilton, Oliver Furby, Nicholas D'Eramo. The team is well equipped, with an average of 15 years of portfolio management experience. Together, they manage a total of five strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate. This group has had relatively low management turnover, providing a stable environment and continuity for the strategies.

Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Rated on Published on

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.

Associate Director Emory Zink

Emory Zink

Associate Director

Parent

Above Average

As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various global cohorts and diverse asset classes, the firm has more tightly integrated its capabilities in recent years, notably through the development of proprietary analytical and risk systems. Investment teams are robustly staffed and helmed by seasoned contributors. The firm’s strategies tend to produce reliable portfolios, and several flagship offerings are Morningstar Medalists. Manager incentives align with fundholders'; compensation reflects longer-term performance factors, and portfolio managers invest in the firm’s strategies as part of their compensation plans.

The firm’s funds tend to be well-priced, but they aren’t as competitive as many highly regarded peers of similar scale. Recent product launches include thematic and single-country strategies, both of which carry the potential for volatile performance and flows, along with misuse by investors. The firm remains intrepid when it comes to developing an environmental, social, and governance-focused framework and continues to move into other areas such as direct indexing through its 55iP acquisition and China through its joint venture, but these complicated initiatives take time to assess any real and lasting effect.

Rated on Published on

This strategy's Institutional share class' long-term performance is mixed depending on the yardstick used.

null Morningstar Manager Research

Morningstar Manager Research

Performance

It has provided better returns compared with peers, but similar returns compared with the category benchmark. Over a 10-year period, this share class outperformed the category’s average return by 2.0 percentage points annualized. And its return mirrored the performance of the category index, the Russell 1000 Index, over the same period.

When adjusting for risk, this fund is competitive. The share class led the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing 10-year period. Notably, these strong risk-adjusted results have not come with more volatility for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. However, the share class proved itself ineffective as it was unable to generate alpha, over the same 10-year period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

Published on

Low-cost investments routinely outperform high-cost investments.

null Morningstar Manager Research

Morningstar Manager Research

Price

Thus, assessing cost is a critical step in any investment evaluation. This fund sits in the cheapest quintile of its Morningstar Category. Its low expense ratio, considered jointly with the fund’s People, Process, and Parent Pillars, indicates that this share class is well-positioned to generate positive alpha versus the lesser of its median category peer or the category benchmark, leading to its Morningstar Medalist Rating of Silver.

Published on

Portfolio Holdings HLEIX

  • Current Portfolio Date
  • Equity Holdings 503
  • Bond Holdings 0
  • Other Holdings 3
  • % Assets in Top 10 Holdings 30.7
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector
7.00
616,288,337
Technology
6.95
611,935,157
Technology
3.44
302,534,571
Consumer Cyclical
3.04
267,821,414
Technology
2.06
181,004,994
Communication Services
1.95
172,020,666
Communication Services
1.75
153,691,071
Communication Services
1.71
150,466,816
Consumer Cyclical
1.61
142,083,358
Financial Services
1.22
107,672,279
Financial Services