Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains competitive advantage. JPMorgan International Value Fund earns an Above Average Process Pillar rating.
This strategy skews toward smaller, deeper value companies than its average peer in the Foreign Large Value Morningstar Category. Examining additional factor exposure, this strategy tilts toward low-quality stocks or the shares of companies with more financial leverage and lower profitability. These are not defensive holdings. The strategy is also historically less exposed to the factor compared with Morningstar Category peers. The managers have also tended to overweight yield, shown by the portfolio's high exposure to dividends or buybacks. Higher-yielding stocks can increase income, but some dividend-payers also might cut their payouts when earnings fall. And compared with category peers, the strategy historically has had more exposure. Additionally, the strategy has exhibited a neutral stance to volatility, suggesting it does not have a demonstrable preference for companies with a high or low historical standard deviation of returns. As of the most recent portfolio disclosure, the portfolio has about average exposure compared with others in the equity fund universe. However, the portfolio has more exposure than its Morningstar Category 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 average peer in its category by 13.0 and 5.2 percentage points in terms of assets, respectively. The sectors with low exposure compared to their category peers are technology and consumer defensive, underweight the average by 5.6 and 5.5 percentage points of assets, respectively. The portfolio is positioned across 227 holdings and is quite concentrated. Specifically, 19.8% of the strategy's assets are housed within the top 10 holdings, as opposed to the typical peer's 13.7%. And in closing, in terms of portfolio turnover, this portfolio turns over its holdings less quickly than peers, potentially leading to lower costs for investors and eliminating a drag on performance.