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JPMorgan Small Cap Blend C VSCCX

Medalist Rating as of | See JPMorgan Investment Hub
  • NAV / 1-Day Return 14.93  /  +0.88 %
  • Total Assets 1.5 Bil
  • Adj. Expense Ratio
    1.740%
  • Expense Ratio 1.740%
  • Distribution Fee Level Low
  • Share Class Type Level Load
  • Category Small Blend
  • Investment Style Small Growth
  • Min. Initial Investment 1,000
  • Status Open
  • TTM Yield 0.31%
  • Turnover 37%

USD | NAV as of Mar 02, 2024 | 1-Day Return as of Mar 02, 2024, 12:00 AM GMT+0

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Morningstar’s Analysis VSCCX

Medalist rating as of .

A strong management team and sound investment process underpin JPMorgan Small Cap Blend C'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 strong management team and sound investment process underpin JPMorgan Small Cap Blend C's Morningstar Medalist Rating of Bronze.

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 highest quintile among peers.

The management team's considerable industry experience drives an Above Average People Pillar rating for the strategy. The strategy's investment approach stands out and earns an Above Average Process Pillar rating. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. 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 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

Above Average

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

The leading factor in the rating is the fund's excellent 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 57% also influences the rating. 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. Their noteworthy success ratio suggests that the firm does well for investors and that this fund may benefit from that. Lastly, the process is limited by being an actively managed strategy. Historical data, like Morningstar's Active/Passive Barometer, finds that actively managed funds have generally underperformed their passive counterparts, especially over longer time horizons.

This strategy has more exposure to the Growth factor than the Small Blend Morningstar Category average. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, 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 beat 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 has had lower exposure to momentum stocks over peers in recent years. Momentum strategies typically bet that stocks that have recently outperformed will continue to do so, and those that have recently underperformed will keep lagging. Avoiding the former and buying the latter could indicate that managers are averse to chasing momentum. Similarly, in recent months, the strategy also had less exposure to the Momentum 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. This orientation tends to pay off most prominently when markets are hot. 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 by 3.1 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are financial services and real estate; however, the allocations are similar to the category. The strategy owns 241 securities and is less top-heavy than peers. Specifically, 9.9% of the portfolio's assets are concentrated within the top 10 fund holdings, compared to the category’s 23.5% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 37% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Rated on Published on

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

null Morningstar Manager Research

Morningstar Manager Research

People

Above Average

Eytan M. Shapiro’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The strategies they currently manage have an average Morningstar Rating of 2.1 stars, demonstrating disappointing risk-adjusted performance compared with category peers. Despite having a small team, the two listed managers boast over 30 years of listed portfolio management experience. With at least one manager investing$ 1 million or more in this offering, investors can have some assurance that the team's interests are aligned with theirs.

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 C share class has held up nicely, outlasting 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 1.0 percentage point over a 10-year period. And it also beat the category index, the Russell 2000 Index, by an annualized 1.7 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. These strong risk-adjusted results have not come with a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. 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.

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

null Morningstar Manager Research

Morningstar Manager Research

Price

This share class levies a fee that places it in its Morningstar Category's highest quintile. Despite this fee, the fund’s People, Process, and Parent Pillars suggest this share class has the potential to deliver positive alpha relative to its category benchmark, resulting in a Morningstar Medalist Rating of Bronze.

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Portfolio Holdings VSCCX

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 9.9
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

JPMorgan Prime Money Market Inst

2.63 37.5 Mil
Cash and Equivalents

Applied Industrial Technologies Inc

1.40 20.0 Mil
Industrials

Matador Resources Co

1.09 15.5 Mil
Energy

Comfort Systems USA Inc

1.07 15.2 Mil
Industrials

Super Micro Computer Inc

1.04 14.8 Mil
Technology

Selective Insurance Group Inc

1.03 14.7 Mil
Financial Services

Simpson Manufacturing Co Inc

0.93 13.2 Mil
Basic Materials

Cactus Inc Class A

0.87 12.4 Mil
Energy

Chord Energy Corp Ordinary Shares - New

0.86 12.2 Mil
Energy

PennyMac Financial Services Inc Class A

0.83 11.8 Mil
Financial Services