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JPMorgan Developed International Value I JIESX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 13.55  /  0.30 %
  • Total Assets 514.3 Mil
  • Adj. Expense Ratio
    0.750%
  • Expense Ratio 0.750%
  • Distribution Fee Level Below Average
  • Share Class Type Institutional
  • Category Foreign Large Value
  • Investment Style Large Value
  • Min. Initial Investment 1,000,000
  • Status Open
  • TTM Yield 5.07%
  • Turnover 34%
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Morningstar’s Analysis JIESX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Developed International Value I's 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.

A sound investment process and strong management team underpin JPMorgan Developed International Value I's Morningstar Medalist Rating of Silver.

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Morningstar Manager Research

Summary

The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.

The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and an overweight in volatility exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The management team's large personal investment in the strategy helps it earn an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

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Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle.

null Morningstar Manager Research

Morningstar Manager Research

Process

High

JPMorgan Developed International Val Fd earns a High Process Pillar rating.

The most important driver of the rating is the parent firm's five-year risk-adjusted success ratio of 57%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Strong risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.2 stars, supports the rating as well.

This strategy tends to hold smaller, deeper value companies compared with its average peer in the Foreign Large Value Morningstar Category. Looking at additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, 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 a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In this month, the strategy also had more exposure to the Yield factor over 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 and energy relative to the category average by 12.7 and 3.0 percentage points, respectively. The sectors with low exposure compared to category peers are technology and consumer defensive, underweight the average by 6.8 and 5.7 percentage points of assets, respectively. The strategy owns 228 securities and is relatively concentrated. In particular, 19.0% of the fund’s assets are housed within the top 10 holdings, as opposed to the typical peer's 14.0%. And finally, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.

Rated on Published on

JPMorgan Developed International Val Fd earns an Above Average People Pillar rating.

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Morningstar Manager Research

People

Above Average

The main contributor to the rating is its parent firm's five-year success ratio of 58%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The portfolio managers' outperformance at the funds they run, as measured by their combined three-year manager excess returns, also bolsters the rating.

Michael Barakos, the longest-tenured manager on the strategy, boasts over 25 years of listed portfolio management experience. The strategies they currently manage have an average Morningstar Rating of 3.2 stars, demonstrating average risk-adjusted performance compared with category peers. Michael Barakos is supported by an experienced team, being able to draw on three additional listed managers, who average 17 years of listed portfolio management experience. The team has successfully retained portfolio-manager talent, providing continuity for strategies as long-term stability tends to support positive results. There have been no documented departures within the past five years.

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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.

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This strategy's Institutional share class has endured varying fortunes.

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Morningstar Manager Research

Performance

It has been strong over the short term but weak over the long term. Over the past five years, the fund outstripped the category index, the MSCI ACWI ex USA Value Index, by 1.4 percentage points, and exceeded the category average by 50 basis points. More importantly, on a 10-year basis, this share class trailed the index by an annualized 40 basis points.

The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the index over the trailing 10-year period. However, this strategy hewed close to the benchmark's standard deviation.

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It is critical to evaluate expenses, as they are subtracted directly out of returns.

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Morningstar Manager Research

Price

This share class sits in the second-cheapest quintile of its Morningstar Category. Its attractive expense ratio, taken together with the fund’s People, Process, and Parent Pillars, suggests that this share class can deliver positive alpha versus its category benchmark, explaining its Morningstar Medalist Rating of Silver.

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Portfolio Holdings JIESX

  • Current Portfolio Date
  • Equity Holdings 229
  • Bond Holdings 0
  • Other Holdings 3
  • % Assets in Top 10 Holdings 18.3
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector
2.89
14,826,186
Energy
2.76
14,161,367
Healthcare
2.13
10,932,747
Energy
1.81
9,293,288
Basic Materials

JPMorgan Prime Money Market Inst

1.72
8,808,064
Cash and Equivalents
1.67
8,563,528
Financial Services
1.53
7,843,203
Healthcare
1.45
7,427,815
Energy
1.43
7,338,585
Financial Services
1.42
7,282,326
Financial Services