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 U.S. Sustainable Leaders Fd earns an Above Average Process Pillar rating.
This strategy targets smaller plays than its peers’ average in the Large Blend Morningstar Category. But in terms of investment style, the strategy is on par with peers. Analyzing additional factors, this fund tilts toward stocks with low trading volumes, which can be harder to trade than more-liquid holdings, particularly during periods of market stress. However, compared with Morningstar Category peers historically, the strategy is more exposed to the factor. This strategy has also exhibited a tilt toward low-volatility stocks, meaning companies with a lower historical standard deviation of returns. Limited exposure to the volatility factor tends to pay off most during periods of market stress. But when compared with category peers, the strategy has historically had more exposure. Additionally, the managers currently show no preference for or aversion to high-yield stocks. The strategy's portfolio has about as much yield exposure as other equity strategies. However, 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 healthcare relative to the average peer in its category by 3.8 and 2.9 percentage points in terms of assets, respectively. The sectors with low exposure compared to their category peers are energy and consumer defensive, underweight the average by 4.4 and 3.2 percentage points of assets, respectively. The strategy owns 71 securities and assets are more dispersed than peers in the category. In particular, 35.2% of the strategy's assets are concentrated in the top 10 fund holdings, as opposed to the category average's 50.0%. And in closing, in terms of portfolio turnover, this fund trades less frequently than the category’s average, potentially limiting costs to investors.