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JPMorgan U.S. Applied Data Sci Val C JIVCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 28.88  /  +0.31 %
  • Total Assets 169.8 Mil
  • Adj. Expense Ratio
    1.230%
  • Expense Ratio 1.230%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 1.03%
  • Turnover 17%

USD | NAV as of Jun 18, 2024 | 1-Day Return as of Jun 18, 2024, 10:17 PM GMT+0

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Morningstar’s Analysis JIVCX

Medalist rating as of .

Strength in JPMorgan U.S. Applied Data Sci Val C's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of Neutral.

Our research team assigns Neutral ratings to strategies they’re not confident will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

Strength in JPMorgan U.S. Applied Data Sci Val C's Process Pillar is partially offset by an Average People Pillar rating, leading to a Morningstar Medalist Rating of Neutral.

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 most expensive quintile among peers.

The strategy’s management team earns an Average People Pillar rating. The strategy's investment approach stands out and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight volatility exposure and liquidity exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. 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 evaluation of this fund's process aims to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan U.S. Applied Data Science Value earns an Above Average Process Pillar rating.

The primary 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 parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also bolsters the process. Lastly, the process is limited by the number of months that the management team has been running this vehicle together.

This strategy, over time, has opted for smaller market-cap companies, compared with others in the Large Value Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Examining additional factor exposure, this strategy has consistently overweighted the volatility factor compared with Morningstar Category peers over the last few years, meaning it invests in stocks with a history of the higher standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. In recent months, however, the strategy had less Yield factor exposure 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 industrials by 2.7 percentage points in terms of assets compared with the category average, and its real estate allocation is similar to the category. The sectors with low exposure compared to category peers are technology and consumer defensive, with technology underweighting the average portfolio by 2.9 percentage points of assets and consumer defensive similar to the average. The portfolio is composed of 104 holdings and is less top-heavy than peers. Specifically, 21.6% of the fund’s assets are concentrated within the top 10 fund holdings, compared to the category’s 28.0% 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 U.S. Applied Data Science Value earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

Wonseok Choi, the longest-tenured manager on the strategy, provides strong guidance, bringing forward 18 years of listed portfolio management experience. Wonseok Choi draws on only two other listed supporting managers. Although, together they are adequately equipped, with nine years of average listed portfolio management experience. The highest personal investment in the fund by any of its managers is between$ 100,000 and$ 500,000. That's on the low side--it would need to be more than$ 1 million for us to see the investment as sufficient to promote the strong alignment of their interests with the strategy's investors.

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 C share class' long-term performance is mixed depending on its comparison point.

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Morningstar Manager Research

Performance

It has provided poor returns compared with peers, but mixed returns compared with the category benchmark. Over a 10-year period, this share class undershot its average peer by 52 basis points annualized. Even though the fund has been challenged against peers, it had mixed performance when compared to its category index, Russell 1000 Value Index. As the share class tracked the index closely over an eight-year period and underperformed it by 67 basis points over the 10-year period.

When adjusting for risk, the fund is not favorable. The share class trailed the index with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. This subpar risk-adjusted performance has not resulted in higher volatility, as measured by their standard deviation, which is close to the benchmark. Finally, 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.

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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 share class sits in the costliest quintile of its Morningstar Category. Its high fee, taken together with the fund’s People, Process, and Parent Pillars, indicates that this share class could struggle to produce positive alpha relative to its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

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Portfolio Holdings JIVCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 21.8
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Exxon Mobil Corp

2.69 4.5 Mil
Energy

Eaton Corp PLC

2.68 4.5 Mil
Industrials

Wells Fargo & Co

2.61 4.4 Mil
Financial Services

ConocoPhillips

2.52 4.3 Mil
Energy

Bank of America Corp

2.10 3.6 Mil
Financial Services

Berkshire Hathaway Inc Class B

2.09 3.5 Mil
Financial Services

BlackRock Inc

1.87 3.2 Mil
Financial Services

The Travelers Companies Inc

1.76 3.0 Mil
Financial Services

NextEra Energy Inc

1.76 3.0 Mil
Utilities

Parker Hannifin Corp

1.73 2.9 Mil
Industrials