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JPMorgan U.S. Applied Data Sci Val R2 JIVZX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 29.91  /  +0.17 %
  • Total Assets 170.6 Mil
  • Adj. Expense Ratio
    1.090%
  • Expense Ratio 1.090%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Medium
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 1.19%
  • Turnover 17%

USD | NAV as of Jul 15, 2024 | 1-Day Return as of Jul 15, 2024, 10:14 PM GMT+0

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Morningstar’s Analysis JIVZX

Medalist rating as of .

Strength in JPMorgan U.S. Applied Data Sci Val R2'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 R2'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 second-costliest 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 seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle.

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 main driver of the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.3 stars. Impressive risk-adjusted performance also supports 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 the number of months that the management team has been running this vehicle together.

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, it is on par with peers. Looking at additional factor exposure, the managers have continually shown 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 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, the managers have tended to overweight yield, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. Higher-yield stocks can provide steady income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. 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 3.1 percentage points in terms of assets compared with the category average, and its financial services 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 103 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 21.8% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category average's 28.0%. And finally, 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.

Rated on Published on

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

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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 team is small but adequately equipped, with two other supporting listed managers. Together, the three boast 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

In comparison with its peers and the category index, this strategy’s Retirement share class has had a checkered long-term track record.

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Morningstar Manager Research

Performance

Over the past eight-year period, this share class performed equivalently to the category's average 10.0% return. But if extended to a 10-year time period, it underperformed the average by 38 basis points. It continued its mixed performance compared with the category index, Russell 1000 Value Index, where it led the index by 34 basis points over an eight-year period and underperformed it by 55 basis points over a 10-year period.

The share class failed to beat 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 more volatility than 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.

Published on

Fees are one of the most predictive factors of future performance.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is within the second-costliest quintile of its Morningstar Category. Its steep fee, taken together with the fund’s People, Process, and Parent Pillars, suggests that this share class could struggle to deliver positive alpha against its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

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Portfolio Holdings JIVZX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 21.5
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Eaton Corp PLC

2.70 4.7 Mil
Industrials

Exxon Mobil Corp

2.57 4.4 Mil
Energy

Wells Fargo & Co

2.54 4.4 Mil
Financial Services

ConocoPhillips

2.25 3.9 Mil
Energy

Bank of America Corp

2.19 3.8 Mil
Financial Services

Berkshire Hathaway Inc Class B

2.11 3.6 Mil
Financial Services

NextEra Energy Inc

2.03 3.5 Mil
Utilities

JPMorgan Prime Money Market Inst

1.89 3.3 Mil
Cash and Equivalents

BlackRock Inc

1.84 3.2 Mil
Financial Services

Prologis Inc

1.67 2.9 Mil
Real Estate