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JPMorgan Mid Cap Equity A JCMAX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 59.03  /  +0.09 %
  • Total Assets 4.2 Bil
  • Adj. Expense Ratio
    1.140%
  • Expense Ratio 1.140%
  • Distribution Fee Level Below Average
  • Share Class Type Front Load
  • Category Mid-Cap Blend
  • Investment Style Mid Blend
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 0.31%
  • Turnover 40%

USD | NAV as of Feb 22, 2024 | 1-Day Return as of Feb 22, 2024, 11:53 PM GMT+0

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Morningstar’s Analysis JCMAX

Medalist rating as of .

JPMorgan Mid Cap Equity A’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze.

Our research team assigns Bronze ratings to strategies they’re confident will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

JPMorgan Mid Cap Equity A’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-costliest quintile among peers.

The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in quality exposure and liquidity exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a low liquidity exposure is rooted in stocks with lower trading volumes, limiting managers' flexibility. 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 Pillar 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

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan Mid Cap Equity Fund earns an Above Average Process Pillar rating.

The largest contributor to the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The stability of the management team also strengthens the process. Specifically, the fund has not seen a manager change in the last ten years. Lastly, the process is limited by being an actively managed strategy. Historical data, such as Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

This strategy leans toward larger, higher-growth companies than its average peer in the Mid-Cap Blend Morningstar Category. Looking at additional factor exposure, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy has also exhibited an overweight liquidity risk tilt, evidenced by holding companies with relatively lower trading volumes than peers in these years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Similarly, in recent months, the strategy also had less exposure to the Liquidity factor than peers. Additionally, this strategy has demonstrated a tilt toward low-volatility stocks in these years, meaning companies with a lower historical standard deviation of returns over its peers. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. In recent months, the strategy also had less Volatility factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in financial services by 3.1 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are basic materials and consumer cyclical, with basic materials underweighting the average portfolio by 2.5 percentage points of assets and consumer cyclical similar to the average. The portfolio is composed of 199 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 11.7% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category’s 15.5% average. And finally, in terms of portfolio turnover, this fund trades less frequently than the category’s average, potentially limiting costs to investors.

Rated on Published on

JPMorgan Mid Cap Equity Fund earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

The team is backed by Jonathan K.L. Simon, the longest-tenured manager on the strategy, who brings over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.7 stars, demonstrating encouraging risk-adjusted performance. The team boasts an experienced corps of listed portfolio managers, with four others supporting Jonathan K.L. Simon. Together, they average 21 years of listed portfolio management experience. With at least one manager investing$ 1 million or more in this offering, investors can have some assurance that the team's interests are aligned with theirs.

Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

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 A share class has held up nicely, outlasting both its peers and the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over a 10-year period, this share class outperformed the category’s average return by 1.2 percentage points annualized. And it also outperformed the category index, the Russell Midcap Index, by an annualized 19 basis points over the same period.

The risk-adjusted performance only continues to make a case for this fund. 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

Fees compound over time and reduce returns, so it is critical for investors to minimize expenses.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class imposes a fee that places it in its Morningstar Category's second-costliest quintile. Even with this fee, the fund’s People, Process, and Parent Pillars suggest this share class can deliver positive alpha relative to its category benchmark, leading to its Morningstar Medalist Rating of Bronze.

Published on

Portfolio Holdings JCMAX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 12.1
Top 10 Holdings
% Portfolio Weight
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