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JPMorgan Diversified L JPDVX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 15.44  /  +0.59 %
  • Total Assets 451.9 Mil
  • Adj. Expense Ratio
    0.650%
  • Expense Ratio 0.650%
  • Distribution Fee Level Average
  • Share Class Type Retirement, Large
  • Category Moderate Allocation
  • Investment Style Large Growth
  • Credit Quality / Interest Rate Sensitivity
  • Status Limited
  • TTM Yield 1.30%
  • Turnover 94%

USD | NAV as of May 24, 2024 | 1-Day Return as of May 24, 2024, 10:16 PM GMT+0

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Morningstar’s Analysis JPDVX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Diversified L's Morningstar Medalist Rating of Bronze.

Our research team assigns Bronze ratings to strategies they’re confident 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 Diversified L's Morningstar Medalist Rating of Bronze.

null Morningstar Manager Research

Morningstar Manager Research

Summary

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

The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in the Europe-Developed region and the financial services sector compared with category peers. The strategy’s management team earns an Above Average People Pillar rating. 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 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

Above Average

JPMorgan Diversified Fund earns an Above Average Process Pillar rating.

The leading factor in the rating is the parent firm's five-year risk-adjusted success ratio of 56%. 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. Impressive risk-adjusted performance also influences 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 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 produces a fixed-income weighting that hews closely to the typical Moderate Allocation peer but holds more assets in equities, with a 34% to 62% fixed-income to equity composition. Its equity sleeve has been persistently biased to growth stocks versus the category average. Although in terms of market-cap exposure, it is close to average. The strategy has three region or sector biases compared to category peers. The most noteworthy bias is a consistent overweight in the Developed Europe region. It also routinely positions more assets in the financial services sector. And finally, in the fund's most recent portfolio, less assets were allocated to developed markets regions. Although, this bias has not existed over time.

The portfolio is overweight in consumer cyclical by 3.2 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 communication services and healthcare; however, the allocations are similar to the category. The portfolio is overweight in Developed Europe and Developed Asia regions relative to the category average by 8.7 percentage points and 3.2 percentage points, respectively. The regions with low exposure compared to their category peers are North America and Middle East and Africa, with North America underweight the average by 17.3 percentage points and Middle East and Africa similar to the average.

Rated on Published on

JPMorgan Diversified Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Jeffrey A. Geller, the longest-tenured manager on the strategy, boasts 23 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.1 stars, demonstrating average risk-adjusted performance. Although the team is small, it is a solid supporting cast. Together, the three listed managers boast more than an average of 16 years of listed portfolio management experience. As a team, they manage three investment vehicles together, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha in aggregate. The highest personal investment in the fund by any of its managers is between$ 500,000 and$ 1 million. 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

This strategy’s Retirement share class has outstripped both its peers and the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

This share class led its average peer by an annualized excess return of 95 basis points over a 10-year period. And it was also ahead of the category index, the Morningstar Moderate Target-Risk Index, by 1.2 percentage points over the same period.

The risk-adjusted performance only continues to make a case for this fund. The share class led the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing 10-year period. These strong risk-adjusted results have not resulted in a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. Finally, the share class proved itself effective by generating positive 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

By minimizing expenses, investors can maximize their expected returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class lands in the second-cheapest quintile of its Morningstar Category. Its affordable expense ratio, taken together with the fund’s People, Process, and Parent Pillars, suggests that this share class should be able to deliver positive alpha against its category benchmark, explaining its Morningstar Medalist Rating of Bronze.

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Portfolio Holdings JPDVX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 23.0
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan BetaBuilders $ HY Corp Bnd ETF

4.98 22.7 Mil

Microsoft Corp

3.25 14.8 Mil
Technology

JPMorgan Core Bond R6

2.75 12.5 Mil

JPMorgan Prime Money Market Inst

2.30 10.4 Mil
Cash and Equivalents

Amazon.com Inc

2.21 10.1 Mil
Consumer Cyclical

NVIDIA Corp

2.18 9.9 Mil
Technology

JPMorgan Large Cap Value R6

2.15 9.8 Mil

Apple Inc

1.77 8.1 Mil
Technology

United States Treasury Notes 4.125%

1.39 6.3 Mil
Government

Meta Platforms Inc Class A

1.35 6.1 Mil
Communication Services