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JPMorgan Developed International ValueR6 JNVMX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 14.38  /  −0.07 %
  • Total Assets 551.9 Mil
  • Adj. Expense Ratio
    0.550%
  • Expense Ratio 0.550%
  • Distribution Fee Level Low
  • Share Class Type Retirement, Large
  • Category Foreign Large Value
  • Investment Style Large Value
  • Min. Initial Investment 15.0 Mil
  • Status Open
  • TTM Yield 5.20%
  • Turnover 34%

USD | NAV as of Mar 28, 2024 | 1-Day Return as of Mar 28, 2024, 11:46 PM GMT+0

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Morningstar’s Analysis JNVMX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Developed International ValueR6'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 sound investment process and strong management team underpin JPMorgan Developed International ValueR6's Morningstar Medalist Rating of Gold.

null Morningstar Manager Research

Morningstar Manager Research

Summary

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

The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and an overweight in volatility exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The management team's large personal investment in the strategy helps it earn an Above Average People Pillar rating. 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.

null Morningstar Manager Research

Morningstar Manager Research

Process

High

JPMorgan Developed International Val Fd earns a High Process Pillar rating.

The largest contributor to 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 influences 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 compelling success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's strong risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, influences the rating as well.

This strategy leans toward smaller, more value-oriented companies compared with its average peer in the Foreign Large Value Morningstar Category. Examining additional factor exposure, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. 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. Additionally, the managers have tended to overweight yield, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In this month, the strategy also had more exposure to the Yield factor 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 financial services and energy relative to the category average by 10.3 and 2.9 percentage points, respectively. The sectors with low exposure compared to category peers are technology and consumer defensive, underweight the average by 6.7 and 5.6 percentage points of assets, respectively. The portfolio is positioned across 232 holdings and is relatively concentrated. In particular, 18.1% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 13.9% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 34% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Rated on Published on

JPMorgan Developed International Val Fd earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

The leading driver of 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 combined average five-year excess return of each manager also contributes to the rating. It implies that the funds they manage have exceeded the average manager.

The team is backed by Michael Barakos, 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 3.3 stars, reflecting average risk-adjusted performance relative to category peers. Michael Barakos is supported by an experienced team, being able to draw on three additional listed managers, who average 17 years of listed portfolio management experience. The team has successfully retained portfolio-manager talent, providing continuity for strategies as long-term stability tends to support 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

This strategy’s Retirement share class' long-term performance has mirrored both its average peer and category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over the past eight-year period, this share class outperformed the category's average return by an annualized 47 basis points. But if extended to a 10-year time period, it performed similarly to the average's 3.1%. And it mirrored the return of the category index, the MSCI ACWI ex USA Value Index, over the 10-year period.

The risk-adjusted performance makes a case for this fund. The share class had a higher Sharpe ratio, a measure of risk-adjusted return, than the index over the trailing 10-year period. Often, higher returns are associated with more risk. However, this strategy hewed close to the benchmark's standard deviation. 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 pulled directly out of returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is within the cheapest quintile of its Morningstar Category. Its attractive expense ratio, paired with the fund’s People, Process, and Parent Pillars, indicates that this share class has the ability to deliver positive alpha versus its category benchmark, explaining its Morningstar Medalist Rating of Gold.

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Portfolio Holdings JNVMX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 18.1
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Novartis AG Registered Shares

2.84 14.5 Mil
Healthcare

Shell PLC

2.75 14.0 Mil
Energy

TotalEnergies SE

2.05 10.4 Mil
Energy

JPMorgan Prime Money Market Inst

2.04 10.4 Mil
Cash and Equivalents

BHP Group Ltd

1.63 8.3 Mil
Basic Materials

HSBC Holdings PLC

1.62 8.3 Mil
Financial Services

Mitsubishi UFJ Financial Group Inc

1.57 8.0 Mil
Financial Services

Roche Holding AG

1.53 7.8 Mil
Healthcare

BP PLC

1.44 7.3 Mil
Energy

Allianz SE

1.43 7.3 Mil
Financial Services