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JPMorgan U.S. Applied Data Sci Val R5 JIVRX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 29.33  /  −0.48 %
  • Total Assets 170.2 Mil
  • Adj. Expense Ratio
    0.440%
  • Expense Ratio 0.440%
  • Distribution Fee Level Low
  • Share Class Type Retirement, Large
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 1.88%
  • Turnover 17%

USD | NAV as of Feb 27, 2024 | 1-Day Return as of Feb 27, 2024, 12:02 AM GMT+0

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Morningstar’s Analysis JIVRX

Medalist rating as of .

JPMorgan U.S. Applied Data Sci Val R5’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 U.S. Applied Data Sci Val R5’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

The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.

The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in 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 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 U.S. Applied Data Science Value earns an Above Average Process Pillar rating.

The leading factor in 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Excellent 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. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

This strategy targets smaller plays than its peers’ average in the Large Value Morningstar Category. But in terms of investment style, it is on par with peers. Looking at additional factor exposure, the managers have continually exhibited a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. 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 exhibited a tilt towards more high-liquid assets over peers in recent years, evidenced by consistently holding companies with relatively higher trading volumes. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to suffer from a significant loss. Compared with category peers, the strategy also had more exposure to the Liquidity 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. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts 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 industrials by 3.2 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 3.8 percentage points of assets and consumer defensive similar to the average. The strategy owns 104 securities and is diversified among those holdings. In its most recent portfolio, 21.0% of the portfolio's assets were concentrated in the top 10 fund holdings, as opposed to the category’s 27.2% average. And in closing, 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 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. The average Morningstar Rating of the strategies they currently manage is 2.9 stars, reflecting average risk-adjusted performance versus category peers. The team is small but adequately equipped, with two other supporting listed managers. Together, the three boast eight years of average listed portfolio management experience. The management team is invested in the fund, but the maximum investment by any manager is between$ 100,000 and$ 500,000. An investment of more than$ 1 million would be ideal to align managers' interests with those of the fund'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 Retirement share class has held up nicely, outlasting its peers and holding even with the category benchmark.

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Morningstar Manager Research

Performance

This share class led its average peer by an annualized excess return of 33 basis points over a 10-year period. And it mirrored the performance of the category index, the Russell 1000 Value Index, over the same period.

When adjusting for risk, the fund is not as favorable. The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the index 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.

Published on

Fees compound over time and diminish returns, making it critical for investors to minimize expenses.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the cheapest quintile of its Morningstar Category. Its low expense ratio, considered jointly with the fund’s People, Process, and Parent Pillars, suggests that this share class is well-positioned to generate positive alpha compared with its category benchmark, leading to its Morningstar Medalist Rating of Bronze.

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Portfolio Holdings JIVRX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 20.9
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

ConocoPhillips

2.44 4.1 Mil
Energy

Exxon Mobil Corp

2.38 4.0 Mil
Energy

Wells Fargo & Co

2.27 3.8 Mil
Financial Services

Eaton Corp PLC

2.22 3.7 Mil
Industrials

Prologis Inc

2.19 3.7 Mil
Real Estate

BlackRock Inc

2.10 3.6 Mil
Financial Services

Bank of America Corp

2.00 3.4 Mil
Financial Services

Berkshire Hathaway Inc Class B

1.97 3.3 Mil
Financial Services

Comcast Corp Class A

1.68 2.8 Mil
Communication Services

NextEra Energy Inc

1.67 2.8 Mil
Utilities