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. JPMorgan International Value Fund earns an Above Average Process Pillar rating.
This strategy tends to hold smaller, more value-oriented companies than its average peer in the Foreign Large Value Morningstar Category. Analyzing additional factors, this strategy favors low-quality stocks. Such positions do not tend to provide much ballast for a portfolio. The strategy is also historically less exposed to the factor compared with Morningstar Category peers. The managers have also tended to overweight yield, shown by the portfolio's high exposure to dividends or buybacks. Higher-yielding stocks can increase income, but some dividend-payers also might cut their payouts when earnings fall. And compared with category peers, the strategy historically has had more exposure. Additionally, this strategy has exhibited a tilt toward high-volatility stocks, meaning companies that have a higher historical standard deviation of returns. Volatility exposure tends to pay off most prominently when markets are hot. And the portfolio has more exposure than its Morningstar Category 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 average peer in its category by 12.1 and 5.2 percentage points in terms of assets, respectively. The sectors with low exposure compared to their category peers are consumer defensive and technology, underweight the average by 6.2 and 5.4 percentage points of assets, respectively. The portfolio is positioned across 237 holdings and is quite concentrated. Specifically, 19.3% of the strategy's assets are housed within the top 10 holdings, versus the category’s 13.4% average.