JPMorgan Intrepid Value Fund - A - J.P. Morgan Asset Management

As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.


Capitalize on market inefficiencies.

The Intrepid Value Fund seeks to deliver consistent long-term results by capitalizing on pricing anomalies in value stocks caused by persistent investor behavioral biases.

Fund Story   Commentary  

Key Points

  • Managed by experienced portfolio managers backed by dedicated quantitative investment team.
  • Style-pure approach to value investing focuses on consistency by combining quantitative and fundamental research.
  • Outperformed benchmark in nine of 13 calendar years since inception.1

1For Select Shares as of 12/31/16.

Chart source: Morningstar, J.P. Morgan Asset Management; as of 12/31/16. Morningstar Large Value Category. Returns for Select Shares. Other share classes may have higher expenses, resulting in lower returns. Ten-year growth with dividend and capital gains reinvested. There is no direct correlation between a hypothetical investment and the anticipated performance of the Fund. Past performance is no guarantee of future results.


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As of June 30, 2017

Quarter in review
  • The JPMorgan Intrepid Value Fund (I Class Shares) outperformed its benchmark, the Russell 1000 Value Index, for the quarter ended June 30, 2017.
  • Shares of IAC/InterActiveCorp (0.0% portfolio weighting) rose during the period after the company reported better-than-expected first-quarter earnings results, driven by revenue growth across all five business segments and solid asset growth from its HomeAdvisor and Vimeo subsidiaries. In addition, the company shifted Vimeo's proprietary SVOD channel launch to 2018, and subsequently raised fiscal year 2017 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance.
  • Our underweight position in General Electric Co. (0.0% portfolio weighting) contributed to performance as shares declined due to continued weak relative earnings and free cash flow revisions, coupled with an earnings quality issue driven by a big disconnect between the company's cash flows and reported earnings. In addition, with weak free cash flow, the company has limited discretionary cash for increased capital deployment, with risk of a cut to dividends and/or share buybacks.
  • Discover Financial Services (1.5% portfolio weighting) shares declined during the period after the company reported first-quarter earnings results generally in line with analyst expectations, but reflected a faster-than-expected rise in net charge-offs (NCOs) and rewards costs than would be implied in full year guidance. Despite being a challenged quarter seasonally, the rise in NCOs was particularly concerning to investors, although it is expected these costs will normalize moving forward.
  • Our underweight position in Exxon Mobil Corp. (0.5% portfolio weighting) hurt performance as the company's strong balance sheet and diversified portfolio of energy projects served as a defensive haven amid the oil price pressures exhibited this quarter.
Looking ahead
  • We continue to believe that our valuation factor is the key driver of long-term performance over a full market cycle. That said, we currently hold the view that stocks perceived to be more volatile are undervalued relative to historical averages. Therefore, we would expect the Fund to outperform in a market environment that is supportive of our pro-cyclical tilt.

Fees and Minimums

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Fund Managers



1Please refer to the prospectus for additional information about cut-off times.

Total return assumes reinvestment of income.

The Fund's adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation and extraordinary expenses) exceed 0.83% for A Shares, 1.33% for C Shares, 0.68% for I Shares, 1.18% for R2 Shares, 0.48% for R5 Shares and 0.43% for R6 Shares of the average daily net assets. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund's adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and expenses of the affiliated money market funds incurred by the Fund because of the Fund's investment in such money market funds. This waiver is in effect through 10/31/2017 for A Shares, 10/31/2017 for C Shares, 10/31/2017 for I Shares, 10/31/2018 for R2 Shares, 10/31/2017 for R5 Shares and 10/31/2017 for R6 Shares, at which time the adviser and/or its affiliates will determine whether to renew or revise it. The difference between net and gross fees includes all applicable fee waivers and expense reimbursements.

The quoted performance of the Fund includes performance of a predecessor fund/share class prior to the Fund's commencement of operations. Please refer to the current prospectus for further information.

Mutual funds have fees that reduce their performance: indexes do not. You cannot invest directly in an index.

The Russell 1000 Value Index is an unmanaged index measuring the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

The performance of the Lipper Large-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund.

The performance of the Lipper Multi-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund.

Total return figures (for the fund and any index quoted) assume payment of fees and reinvestment of dividends (after the highest applicable foreign withholding tax) and distributions. Without fee waivers, fund returns would have been lower. Due to rounding, some values may not total 100%.

©2017, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.Rankings do not take sales loads into account.
The following risks could cause the fund to lose money or perform more poorly than other investments. For more complete risk information, see the prospectus.

Behavioral finance strategies are not guaranteed to prevent the loss of capital.
Total return assumes reinvestment of income.

The top 10 holdings listed reflect only the Fund's long-term investments. Short-term investments are excluded. Holdings are subject to change. The holdings listed should not be considered recommendations to purchase or sell a particular security. Each individual security is calculated as a percentage of the aggregate market value of the securities held in the Fund and does not include the use of derivative positions, where applicable.

P/E ratio: the number by which earnings per share is multiplied to estimate a stock's value.

P/B ratio: the relationship between a stock's price and the book value of that stock.

Sharpe ratio measures the fund's excess return compared to a risk-free investment. The higher the Sharpe ratio, the better the returns relative to the risk taken.

Tracking Error: The active risk of the portfolio, which determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.

Alpha: The relationship between the performance of the Fund and its beta over a three-year period of time.

Standard deviation/Volatility: A statistical measure of the degree to which the Fund's returns have varied from its historical average. The higher the standard deviation, the wider the range of returns from its average and the greater the historical volatility. The standard deviation is calculated over a 36-month period based on Fund's monthly returns. The standard deviation shown is based on the Fund's Class A Shares or the oldest share class, where Class A Shares are not available.

R2: The percentage of a Fund's movements that result from movements in the index ranging from 0 to 100. A Fund with an R2 of 100 means that 100 percent of the Fund's movement can completely be explained by movements in the Fund's external index benchmark.

EPS: Total earnings divided by the number of shares outstanding.

Risk measures are calculated based upon the Funds' broad-based index as stated in the prospectus.