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JPMorgan Small Cap Value R5 JSVRX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 29.65  /  +1.51 %
  • Total Assets 1.3 Bil
  • Adj. Expense Ratio
    0.840%
  • Expense Ratio 0.840%
  • Distribution Fee Level Average
  • Share Class Type Retirement, Large
  • Category Small Value
  • Investment Style Small Value
  • Min. Initial Investment
  • Status Open
  • TTM Yield 1.42%
  • Turnover 79%

USD | NAV as of Jul 22, 2024 | 1-Day Return as of Jul 22, 2024, 10:16 PM GMT+0

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Morningstar’s Analysis JSVRX

Medalist rating as of .

JPMorgan Small Cap Value R5’s management team is rated Average, but a solid investment process still helps this strategy retain its 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.

JPMorgan Small Cap Value R5’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the second-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 an overweight in volatility exposure and an underweight in quality exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy’s management team earns an 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 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

High

JPMorgan Small Cap Value Fund earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.3 stars. The parent firm's five-year risk-adjusted success ratio of 55% also bolsters the process. 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 relatively high success ratio suggests that the firm does well for investors and that this fund may benefit from that. The size of the portfolio management team supports the process as well. With four portfolio managers at the helm, the fund is reasonably well-resourced.

This strategy is similar to its Small Value category peers in terms of market-cap and style exposure. Examining additional factor exposure, this strategy has consistently overweighted the volatility factor compared with Morningstar Category peers over the last few years, meaning it invests in stocks with a history of the higher standard deviation of returns. This is a higher-risk, higher-reward approach. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In this month, the strategy also had more exposure to the Liquidity 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 real estate and healthcare relative to the category average by 5.7 and 3.8 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and consumer cyclical, underweight the average by 5.1 and 3.0 percentage points of assets, respectively. The strategy owns 381 securities and is less top-heavy than peers. Specifically, 8.4% of the fund’s assets are concentrated within the top 10 fund holdings, as opposed to the category’s 29.9% average. And in closing, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.

Rated on Published on

JPMorgan Small Cap Value Fund earns an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

Phillip D. Hart, the longest-tenured manager on the strategy, boasts 14 years of listed portfolio management experience. Phillip D. Hart is supported by an experienced team, being able to draw on three additional listed managers, who average 10 years of listed portfolio management experience. As a team, they manage six investment vehicles together, with a Bronze asset-weighted algorithmically-assigned 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$ 100,000 and$ 500,000. 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 endured varying fortunes.

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Morningstar Manager Research

Performance

It has been successful over the short term but disappointing over the long term. Over the past five years, the fund outperformed the category index, the Russell 2000 Value Index, by 1.5 percentage points, and lagged the category average by 81 basis points. More importantly, on a 10-year basis, this share class mirrored the index.

The share class had a lower Sharpe ratio, a measure of risk-adjusted returns, than the index 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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Low-cost investments routinely outperform high-cost investments.

null Morningstar Manager Research

Morningstar Manager Research

Price

Thus, assessing cost is a critical step in any investment evaluation. This share class lands in the second-cheapest quintile of its Morningstar Category. Its low expense ratio, paired 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, leading to its Morningstar Medalist Rating of Silver.

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Portfolio Holdings JSVRX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 8.2
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Prime Money Market Inst

2.53 33.6 Mil
Cash and Equivalents

Griffon Corp

0.90 12.0 Mil
Industrials

SM Energy Co

0.89 11.8 Mil
Energy

Mr. Cooper Group Inc

0.89 11.8 Mil
Financial Services

Commercial Metals Co

0.89 11.8 Mil
Basic Materials

Knowles Corp

0.81 10.8 Mil
Technology

Old National Bancorp

0.79 10.4 Mil
Financial Services

Essent Group Ltd

0.78 10.4 Mil
Financial Services

Mueller Industries Inc

0.77 10.2 Mil
Industrials

Oscar Health Inc Class A

0.76 10.1 Mil
Healthcare