Skip to Content

JPMorgan Small Cap Growth I OGGFX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 20.21  /  −0.59 %
  • Total Assets 4.1 Bil
  • Adj. Expense Ratio
    0.990%
  • Expense Ratio 0.990%
  • Distribution Fee Level Above Average
  • Share Class Type Institutional
  • Category Small Growth
  • Investment Style Small Growth
  • Min. Initial Investment 1.0 Mil
  • Status Limited
  • TTM Yield
  • Turnover 33%

USD | NAV as of Feb 28, 2024 | 1-Day Return as of Feb 28, 2024, 11:56 PM GMT+0

unlocked

Morningstar’s Analysis OGGFX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Small Cap Growth I'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 strong management team and sound investment process underpin JPMorgan Small Cap Growth I's 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 managers invest alongside shareholders, which helps it earn an Above Average People Pillar rating. The strategy's investment approach stands out and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight liquidity exposure and has a considerable underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. 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

Above Average

JPMorgan Small Cap Growth Fund earns an Above Average Process Pillar rating.

The most significant contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 57%. 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. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also influences the rating. 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 is similar to its Small Growth category peers in terms of market-cap and style exposure. Examining additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. 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 higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In this month, the strategy also had more exposure to the Volatility 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 technology and consumer cyclical relative to the category average by 3.2 and 3.2 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and communication services, with financial services underweighting the average portfolio by 5.3 percentage points of assets and communication services similar to the average. The portfolio is positioned across 131 holdings and is diversified among those holdings. In its most recent portfolio, 16.1% of the portfolio's assets were concentrated in the top 10 fund holdings, as opposed to the category average's 27.5%. And finally, in terms of portfolio turnover, on a year-over-year basis, 33% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Rated on Published on

JPMorgan Small Cap Growth Fund earns an Above Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

The team is backed by Eytan M. Shapiro, the longest-tenured manager on the strategy, who brings over 25 years of listed portfolio management experience. The strategies they currently manage have an average Morningstar Rating of 2.1 stars, demonstrating disappointing risk-adjusted performance compared with category peers. The team boasts an experienced corps of listed portfolio managers, with three others supporting Eytan M. Shapiro. Together, they average 19 years of listed portfolio management experience. The highest personal investment in this offering by any of its managers is at least$ 1 million. An investment of that size is large enough to align managers' interests with investors.

Note: The People Pillar rating is indirectly assigned by an analyst. At least one of the managers on this fund manages a different product rated by an analyst. The analyst-assigned People Pillar rating(s) for these managers are combined with algorithmic scores for any non-covered 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 Institutional share class has outstripped both its peers and the category benchmark.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Over a 10-year period, this share class outperformed the category’s average return by 1.0 percentage point annualized. And it also exceeded the return of the category benchmark, the Russell 2000 Growth Index, by an annualized 1.5 percentage points over the same period.

The risk-adjusted performance only continues to make a case for this fund. The share class outstripped the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing 10-year period. However, these returns were accompanied by additional risk, with a standard deviation of 22.2% compared to the benchmark's 20.7%. 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.

Published on

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

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class is in the second-cheapest quintile of its Morningstar Category. Its competitive expense ratio, considered jointly with the fund’s People, Process, and Parent Pillars, indicates that this share class has high potential to deliver positive alpha relative to its category benchmark, explaining its Morningstar Medalist Rating of Silver.

Published on

Portfolio Holdings OGGFX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 16.1
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Super Micro Computer Inc

2.09 78.8 Mil
Technology

Simpson Manufacturing Co Inc

1.86 70.3 Mil
Basic Materials

Applied Industrial Technologies Inc

1.85 69.7 Mil
Industrials

Evolent Health Inc Class A

1.65 62.3 Mil
Healthcare

AAON Inc

1.55 58.5 Mil
Industrials

Rambus Inc

1.43 53.8 Mil
Technology

Casella Waste Systems Inc Class A

1.42 53.4 Mil
Industrials

Amicus Therapeutics Inc

1.41 53.2 Mil
Healthcare

ITT Inc

1.40 52.8 Mil
Industrials

e.l.f. Beauty Inc

1.39 52.5 Mil
Consumer Defensive