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JPMorgan Developed International ValueR2 JPVZX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 14.21  /  −0.63 %
  • Total Assets 576.4 Mil
  • Adj. Expense Ratio
    1.300%
  • Expense Ratio 1.300%
  • Distribution Fee Level Average
  • Share Class Type Retirement, Medium
  • Category Foreign Large Value
  • Investment Style Large Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 4.43%
  • Turnover 34%

USD | NAV as of May 23, 2024 | 1-Day Return as of May 23, 2024, 10:18 PM GMT+0

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Morningstar’s Analysis JPVZX

Medalist rating as of .

A sound investment process and strong management team underpin JPMorgan Developed International ValueR2'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 sound investment process and strong management team underpin JPMorgan Developed International ValueR2'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 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.

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Morningstar Manager Research

Process

High

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

The predominant contributor to the rating is the fund's impressive 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 56% 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 respectable success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's excellent risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, influences the rating as well.

This strategy skews toward smaller, deeper value companies compared with its average peer in the Foreign Large Value Morningstar Category. Looking at additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, 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 also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. Such exposure tends to pay off when markets are hot and to be costly when they are not. 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. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts 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 by 10.8 percentage points in terms of assets compared with the category average, and its energy allocation is similar to the category. The sectors with low exposure compared to category peers are technology and consumer defensive, underweight the average by 6.6 and 5.8 percentage points of assets, respectively. The portfolio is positioned across 242 holdings and is relatively concentrated. In particular, 17.0% of the strategy's assets are housed within the top 10 holdings, as opposed to the typical peer's 14.4%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 34% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Rated on Published on

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

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Morningstar Manager Research

People

Above Average

The most important driver of the rating is its parent firm's five-year success ratio of 56%. 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 influences the rating. It implies that the funds they manage have beat the average manager.

Michael Barakos, 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 manage is 3.4 stars, demonstrating above-average risk-adjusted performance. The team boasts an experienced corps of listed portfolio managers, with three others supporting Michael Barakos. Together, they 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 has had varying fortunes.

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Morningstar Manager Research

Performance

It has been strong over the short term but disappointing over the long term. Over the past five years, the fund outstripped the category index, the MSCI ACWI ex USA Value Index, by 1.8 percentage points, and exceeded the category's average return by 85 basis points. More importantly, on a 10-year basis, this share class fell behind the index by an annualized 23 basis points.

The share class failed to beat 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.

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Fees compound over time and reduce returns, so it is critical for investors to minimize expenses.

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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 suggest this share class can deliver positive alpha relative to its category benchmark, earning it a Morningstar Medalist Rating of Silver.

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Portfolio Holdings JPVZX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 17.1
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Shell PLC

2.63 14.5 Mil
Energy

Novartis AG Registered Shares

2.38 13.1 Mil
Healthcare

TotalEnergies SE

1.94 10.7 Mil
Energy

Toyota Motor Corp

1.77 9.8 Mil
Consumer Cyclical

JPMorgan Prime Money Market Inst

1.53 8.4 Mil
Cash and Equivalents

Mitsubishi UFJ Financial Group Inc

1.52 8.4 Mil
Financial Services

HSBC Holdings PLC

1.45 8.0 Mil
Financial Services

Allianz SE

1.43 7.9 Mil
Financial Services

BHP Group Ltd

1.38 7.6 Mil
Basic Materials

BP PLC

1.38 7.6 Mil
Energy