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JPMorgan Large Cap Value R5 JLVRX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 19.41  /  +0.05 %
  • Total Assets 3.7 Bil
  • Adj. Expense Ratio
    0.540%
  • Expense Ratio 0.540%
  • Distribution Fee Level Below Average
  • Share Class Type Retirement, Large
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 1.74%
  • Turnover 143%

USD | NAV as of Feb 23, 2024 | 1-Day Return as of Feb 23, 2024, 11:54 PM GMT+0

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Morningstar’s Analysis JLVRX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Large Cap Value R5's Morningstar Medalist Rating of Gold.

Our research team assigns Gold ratings to strategies that they have the most conviction will outperform a relevant index, or most peers, over a market cycle on a risk-adjusted basis.

A strong management team and sound investment process underpin JPMorgan Large Cap Value R5's Morningstar Medalist Rating of Gold.

null Morningstar Manager Research

Morningstar Manager Research

Summary

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

The strategy's managers invest alongside shareholders, which helps it earn a High 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 a substantial overweight position in 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's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

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.

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Morningstar Manager Research

Process

Above Average

JPMorgan Large Cap Value Fund earns an Above Average Process Pillar rating.

The leading factor in the rating is the fund's strong 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 five-year risk-adjusted success ratio of 57% also bolsters the rating. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Their commendable success ratio suggests that the firm does well for investors and that this fund may benefit from that. Lastly, the process is limited by being an actively managed strategy. Historical data, such as 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 style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Looking at additional factor exposure, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has not maintained a defensive tilt, demonstrated by low exposure to the quality factor. This means the fund avoids holding firms that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects will rest on its ability to supersede peers during economic booms. In recent months, the strategy also had less Quality factor exposure than 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 basic materials and technology; however, the allocations are similar to the category. The portfolio is composed of 94 holdings and invests 27.6% of assets in its top 10 holdings, similar to the category average. And finally, in terms of portfolio turnover, this portfolio's holdings turn over more often than comparable products in its peer group, possibly resulting in higher costs for investors and a drag on performance.

Rated on Published on

JPMorgan Large Cap Value Fund earns a High People Pillar rating.

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Morningstar Manager Research

People

High

The largest contributor to the rating is its parent firm's five-year success ratio of 58%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The combined average five-year excess return of each manager also strengthens the rating. It suggests that the funds they manage have outperformed the average manager. The stability of the management team further strengthens the rating. Specifically, the fund has not seen a manager change in the last nine years.

The team is backed by Scott Blasdell, the longest-tenured manager on the strategy, who brings over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.4 stars, demonstrating encouraging risk-adjusted performance. Scott Blasdell has an experienced listed co-manager. Together, they average 13 years of listed portfolio management experience. The highest personal investment in this offering by any of its managers is at least $1 million. An investment of that size is large enough to align managers' interests with investors.

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 both its peers and the category benchmark.

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Morningstar Manager Research

Performance

Over a 10-year period, this share class outperformed the category’s average return by 2.3 percentage points annualized. And it also outperformed the category index, the Russell 1000 Value Index, by an annualized 2.0 percentage points over the same period.

The risk-adjusted performance only continues to make a case for this fund. The share class outstripped the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing 10-year period. However, these strong risk-adjusted results came with more volatility for investors. This strategy took on elevated risk, as measured by a higher standard deviation, 18.6%, compared to the benchmark's 15.4%. However, 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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It is critical to assess expenses, as they are subtracted directly out of returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is in the cheapest quintile of its Morningstar Category. Its competitive fee, in conjunction with the fund’s People, Process, and Parent Pillars, suggests that this share class has the ability to deliver positive alpha against its category benchmark, explaining its Morningstar Medalist Rating of Gold.

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Portfolio Holdings JLVRX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 24.4
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Bank of America Corp

4.78 173.9 Mil
Financial Services

Truist Financial Corp

2.57 93.5 Mil
Financial Services

Chevron Corp

2.40 87.3 Mil
Energy

Fiserv Inc

2.35 85.3 Mil
Technology

AbbVie Inc

2.34 85.1 Mil
Healthcare

Citigroup Inc

2.05 74.7 Mil
Financial Services

Wells Fargo & Co

2.05 74.5 Mil
Financial Services

Digital Realty Trust Inc

1.99 72.4 Mil
Real Estate

Boeing Co

1.92 69.9 Mil
Industrials

Bristol-Myers Squibb Co

1.92 69.7 Mil
Healthcare