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JPMorgan Mid Cap Equity C JMCCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 55.80  /  −0.59 %
  • Total Assets 4.7 Bil
  • Adj. Expense Ratio
    1.640%
  • Expense Ratio 1.640%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Mid-Cap Blend
  • Investment Style Mid Blend
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield
  • Turnover 40%

USD | NAV as of Jul 19, 2024 | 1-Day Return as of Jul 19, 2024, 10:14 PM GMT+0

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Morningstar’s Analysis JMCCX

Medalist rating as of .

Strength in JPMorgan Mid Cap Equity C'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 Mid Cap Equity C'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 most expensive 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. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. 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 Mid Cap Equity Fund earns an Above Average Process Pillar rating.

The most significant contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.3 stars. Strong risk-adjusted performance also supports the process. 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 skews toward larger, more growth-oriented companies compared with its average peer in the Mid-Cap Blend Morningstar Category. Examining additional factor exposure, this strategy continually held some stocks with low trading volume over the last few years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In the latest month, the strategy was also less exposed to the Liquidity factor compared with Morningstar Category peers. This strategy has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Additionally, this strategy has exhibited a tilt toward low-volatility stocks in these years, meaning companies with a lower historical standard deviation of returns over its peers. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In recent months, the strategy also had less Volatility 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 financial services by 3.0 percentage points in terms of assets compared with the category average, and its utilities allocation is similar to the category. The sectors with low exposure compared to category peers are basic materials and industrials; however, the allocations are similar to the category. The portfolio is composed of 207 holdings and its assets are more dispersed than peers in the category. In particular, 12.4% of the portfolio's assets are concentrated in the top 10 fund holdings, compared to the category average's 16.8%. And finally, in terms of portfolio turnover, this fund trades less frequently than the category’s average, potentially limiting costs to investors.

Rated on Published on

JPMorgan Mid Cap Equity Fund earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

Jonathan K.L. Simon, the longest-tenured manager on the strategy, boasts over 25 years of listed portfolio management experience. A large cast of five additional named managers adds to the team's appeal, averaging 16 years of listed portfolio management experience. The team has been a revolving door, with higher-than-average portfolio-manager turnover. The most recent documented departure was two months ago. High team turnover can hinder the effectiveness of a strategy's investment process.

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 C share class' long-term performance is mixed depending on the yardstick used.

null Morningstar Manager Research

Morningstar Manager Research

Performance

It has provided similar returns compared with peers, but subpar returns compared with the category benchmark. Over the trailing eight-year period, this share class underperformed the category's average return by an annualized 25 basis points. But when expanded to a 10-year period, it performed similarly to the average's 9.2%. However, it was not able to outperform the category index, Russell Midcap Index. It trailed by an annualized 29 basis points over the same 10-year period.

When adjusting for risk, the fund does not hold up. 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 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 compound over time and reduce returns, making it critical for investors to minimize expenses.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class sits in the costliest quintile of its Morningstar Category. Its pricey fee, in conjunction with the fund’s People, Process, and Parent Pillars, suggests that this share class could struggle to deliver positive alpha versus its category benchmark, explaining its Morningstar Medalist Rating of Neutral.

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Portfolio Holdings JMCCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 12.4
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

ITT Inc

1.52 69.4 Mil
Industrials

JPMorgan Prime Money Market Inst

1.46 66.8 Mil
Cash and Equivalents

Ameriprise Financial Inc

1.44 65.9 Mil
Financial Services

Hubbell Inc

1.31 59.9 Mil
Industrials

AMETEK Inc

1.30 59.3 Mil
Industrials

Raymond James Financial Inc

1.26 57.8 Mil
Financial Services

Loews Corp

1.20 54.8 Mil
Financial Services

Williams Companies Inc

1.13 51.7 Mil
Energy

Cencora Inc Common Stock

1.11 50.9 Mil

Arch Capital Group Ltd

1.09 50.0 Mil
Financial Services