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JPMorgan U.S. Applied Data Sci Val R2 JIVZX

Quantitative rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 27.37  /  0.80 %
  • Total Assets 197.0 Mil
  • Adj. Expense Ratio
  • Expense Ratio 1.090%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Medium
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment 0
  • Status Open
  • TTM Yield 1.33%
  • Turnover 55%

Morningstar’s Analysis JIVZX

Quantitative rating as of .

The Morningstar Quantitative Rating for funds is analogous to the rating our analyst might assign to the fund if they covered it.

Our analysts assign Neutral ratings to strategies they’re not confident will outperform a relevant index, or most peers, over a market cycle.



Strength in JPMorgan U.S. Applied Data Sci Val R2's Process Pillaris partially offset by an Average People Pillar rating, leading to a Morningstar Quantitative Rating of Neutral. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-costliest quintile among peers.

The strategy benefits from limited portfolio manager turnover, providing continuity on the strategy. This earns the team an Average People Pillar rating. The strategy's investment approach stands out and earns an Above Average Process Pillar rating. The portfolio has overweighted liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy has a solid parent that earns an Above Average Parent Pillar rating. This firm has had a high lineup success ratio and overall attractive fees.


| Above Average |

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

This strategy tends to pick smaller market-cap firms compared with the average fund in its peer group, the Large Value 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, this strategy's holdings include more companies with high dividend or buyback yields. Stocks with high yield exposure tend to be more mature, stable businesses, though some offer high yields because their earnings and share prices have plunged. Extreme business or market conditions also can cause either kind of company to suspend or cut their payouts. 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 has allocations in its top 2 sectors, industrials and financial services, that are similar to the average portfolio in the category. The sectors with low exposure compared to their category peers are technology and consumer defensive, with technology underweighting the average portfolio by 4.0 percentage points of assets and consumer defensive similar to the average. The strategy owns 97 securities and assets are more dispersed than peers in the category. In particular, 23.4% of the portfolio's assets are concentrated in the top 10 fund holdings, compared to the category’s 31.0% average. And in closing, in terms of portfolio turnover, this portfolio turns over its holdings less quickly than peers, potentially leading to lower costs for investors and eliminating a drag on performance.


| Average |

JPMorgan U.S. Applied Data Science Value doesn't differentiate itself much with standard team turnover and a corps of managers with average experience. This warrants an Average People Pillar rating. Wonseok Choi, the longest-tenured manager on the strategy, provides strong guidance, offering 17 years of portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.0 stars, demonstrating average risk-adjusted performance. Wonseok Choi draws on only two other listed supporting managers. Although, together they are adequately equipped, with seven years of average portfolio management experience. The fund has had about average portfolio manager turnover compared to other teams. Long-term stability strengthens a team's rating as it tends to support positive results. However, the most recent documented departure was 17 months ago.


| Above Average |

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.

As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various cohorts globally and a diverse set of 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.



This strategy’s Retirement share class has mirrored both its average peer and category benchmark. Over the past 10-year period, this share class' 9.8% return was about even with the average peer's performance. It was not able to outpace the category benchmark, Russell 1000 Value Index, where it trailed by an annualized 46 basis points over the same period.

Even 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. But notably, these subpar risk-adjusted results have not come with a rockier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. 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.



It is imperative to evaluate fees, which eat away at expected returns. This share class sits in the second-costliest quintile of its Morningstar Category. Its high expense ratio, paired with the fund’s People, Process, and Parent Pillars, suggests that this share class could struggle to deliver positive alpha against its category benchmark, leading to its Morningstar Quantitative Rating of Neutral.