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JPMorgan Large Cap Value R2 JLVZX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 19.46  /  +0.72 %
  • Total Assets 3.6 Bil
  • Adj. Expense Ratio
    1.190%
  • Expense Ratio 1.190%
  • Distribution Fee Level Average
  • Share Class Type Retirement, Medium
  • Category Large Value
  • Investment Style Large Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 1.04%
  • Turnover 143%

USD | NAV as of Apr 20, 2024 | 1-Day Return as of Apr 20, 2024, 12:09 AM GMT+0

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Morningstar’s Analysis JLVZX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Large Cap Value R2's Morningstar Medalist Rating of Silver.

Our research team assigns Silver ratings to strategies that they have a high conviction will outperform the 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 R2's Morningstar Medalist Rating of Silver.

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

The leading factor in the rating is the fund's excellent 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 outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their noteworthy 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, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

This strategy, over time, has opted for smaller market-cap companies, compared with others in the Large Value Morningstar Category. But in terms of investment style, it is on par with peers. Analyzing additional factors, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few 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. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This contributes to a higher-risk, higher-reward approach. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. This strategy also has tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over these years. Lacking this ballast, the fund's prospects could rest on its ability to beat 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 2.9 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared to category peers are utilities and technology; however, the allocations are similar to the category. The portfolio has 94 holdings and is about as top-heavy as the category average, with 26.4% of assets in the top 10 holdings. And in closing, in terms of portfolio turnover, on a year-over-year basis, 143% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

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 main contributor to the rating is its parent firm's five-year success ratio of 57%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The portfolio managers' outperformance at the funds they run, as measured by their combined three-year manager excess returns, also influences the rating. Additionally, at least one manager has invested over$ 1 million in the strategy, which aligns their interests with fundholders.

Scott Blasdell, the longest-tenured manager on the strategy, provides strong guidance, offering over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.1 stars, indicating that their risk-adjusted returns have been in line with the category average. Despite having a small team, the two listed managers boast 13 years of listed portfolio management experience. There has been limited turnover among the portfolio-management ranks, which has provided stability for the investment strategy. Stability tends to go hand in hand with positive results. There have been no documented departures within the past five years.

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

Outpacing both its peers and the category benchmark, this strategy’s Retirement share class, has had a noteworthy track record.

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Morningstar Manager Research

Performance

This share class outpaced its average peer by 1.4 percentage points annualized over a 10-year period. And it also outperformed the category index, the Russell 1000 Value Index, by an annualized 1.2 percentage points over the same period.

When adjusting for risk, the fund is not as favorable. The share class trailed the index with a lower Sharpe ratio, a measure of risk-adjusted returns, over the trailing 10-year period. The strategy also took on elevated risk, contributing to the bad outcome for investors. Specifically, the fund had a higher standard deviation, 18.5%, compared with the benchmark, 15.3%. 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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It is important to pay attention to fees as lower-cost investments maximize investors' returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class charges a fee that places it in its Morningstar Category's most expensive quintile. Despite this fee, the fund’s People, Process, and Parent Pillars indicate this share class can produce positive alpha relative to its category benchmark, earning it a Morningstar Medalist Rating of Silver.

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Portfolio Holdings JLVZX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 27.0
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Bank of America Corp

4.87 178.3 Mil
Financial Services

Chevron Corp

3.39 124.1 Mil
Energy

Berkshire Hathaway Inc Class B

3.23 118.3 Mil
Financial Services

Fiserv Inc

2.62 95.9 Mil
Technology

Truist Financial Corp

2.42 88.6 Mil
Financial Services

AbbVie Inc

2.30 84.3 Mil
Healthcare

Citigroup Inc

2.11 77.3 Mil
Financial Services

Medtronic PLC

2.10 76.8 Mil
Healthcare

Exxon Mobil Corp

2.04 74.5 Mil
Energy

Boeing Co

1.93 70.7 Mil
Industrials