JPMorgan Mid Cap Value Fund - A - J.P. Morgan Asset Management

The JPMorgan Mid Cap Equity Fund currently has a limited offering. Please see the prospectus for more details.


Finding value in the middle.

Drawing on the insights of a deeply experienced team, the Mid Cap Value Fund takes a disciplined approach to identifying high-quality, attractively valued mid-cap companies.

Fund Story  

Key Points

  • Portfolio management team is led by Jonathan Simon, an experienced value manager with over 37 years of industry experience — all at J.P. Morgan.
  • Seeks to identify high quality mid-cap companies that appear to be undervalued and have the potential for capital appreciation.
  • Top-quartile performance over the 10-year period.1

Compared to benchmark and category average, in thousands (difference vs. benchmark)

1Source: Morningstar as of 6/30/17. Mid-Cap Blend Category. I Shares. Ranked as follows: 1-yr. (340/435), 3-yrs. (62/368), 5-yrs. (92/328) and 10-yrs. (30/220). Past performance does not guarantee future results.

Chart source: Morningstar, J.P. Morgan Asset Management; as of 6/30//17. US OE Mid-Cap Blend category. I Share class. Other share classes may have higher expenses, which would result in lower returns. Ten-year growth with dividends and capital gains reinvested. There is no direct correlation between a hypothetical investment and the anticipated performance of the Fund. The $0 value for benchmark growth is the baseline for the over and under comparison.

Value investing: Why flexibility matters

February 29, 2016

Value Advantage PM Jonathan Simon explains how market cap flexibility helps him access today's opportunities.


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As of September 30, 2017

Quarter in review
  • The JPMorgan Mid Cap Value Fund (I Class Shares) underperformed the benchmark, the Russell Midcap Value Index, for the quarter ended September 30, 2017.
  • T. Rowe Price Group, Inc. (1.3% portfolio weighting) contributed to performance after delivering strong quarterly earnings. Investors focused on higher assets under management, better margins and robust share repurchases. Additionally, management reiterated expense guidance, and flows are holding up better than expected. We continue to think that T. Rowe Price is well-positioned, given its durable competitive advantages around scale, diversification, strong platform performance and distribution reach.
  • The plight of retailers has been well documented, enabling The Gap, Inc. (0.9% portfolio weighting) to rally following an impressive financial report, which exceeded the expectations of an overly pessimistic market. We like The Gap as we find the valuation attractive and believe the company is in the midst of developing effective omni-channel distribution in order to remain relevant within a changing retail landscape.
  • Newell Brands, Inc. (1.2% portfolio weighting) was the largest stock-specific detractor in the wake of a guidance cut and cautious commentary from CEO Mike Polk. The biggest reason for the guidance cut was an unexpected increase in resin prices, since majority of Newell’s resin suppliers are located in hurricane-impacted regions. Despite the near-term impact, we believe that Newell is capable of generating incremental earnings growth in the long run driven by management’s plan to accelerate debt repayment, reduce costs and extract synergies from recent acquisitions. We like that Newell is a hybrid consumer staples/discretionary company and don’t think the above-mentioned positive actions are fully reflected in the valuation.
  • Our position in DISH Network Corp., (0.9% portfolio weighting) was a top stock-specific detractor as investors were disappointed by quarterly results. While the market focused on Dish’s revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) miss, we’d point to the fact that subscriptions were better and customer churn was lower. There has been much merger-and-acquisition chatter in this space and we think that recent deals will pressure players to make their own strategic moves to highlight valuable assets, such as Dish’s spectrum. We have confidence in CEO Charlie Ergen’s strategy to monetize the spectrum, which will be particularly important to satisfy future network demands of 5G deployment.
Looking ahead
  • Financials remain the largest absolute sector position within the portfolio. We continue to be invested in a diverse set regional banks and insurance companies, and are finding attractive opportunities in asset managers.
  • Alternatively, we have been selectively paring back exposure to the consumer discretionary sector, given Amazon’s disruption in parts of the consumer market.
  • We continue to be selective when it comes to investing in both the cyclical parts of the market and the bond proxies. As a result, not only do we have less exposure to industrials, energy and materials, given the cyclicality of such businesses. We also are underweight more stable sectors such as telecommunication services, utilities and real estate investment trusts, where we feel that valuations are stretched.

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 1.24% for A Shares, 1.75% for C Shares, 0.99% for I Shares, 0.75% for L Shares, 1.50% for R2 Shares, 1.25% for R3 Shares, 1.00% for R4 Shares, 0.85% for R5 Shares and 0.75% 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 10/31/2018 for A Shares, 10/31/2018 for C Shares, 10/31/2018 for I Shares, 10/31/2018 for L Shares, 10/31/2018 for R2 Shares, 10/31/2018 for R3 Shares, 10/31/2018 for R4 Shares, 10/31/2018 for R5 Shares and 10/31/2018 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 Midcap Value Index is an unmanaged index measuring the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values.

The performance of the Lipper Mid-Cap Core 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 Mid-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.

Mid-cap funds typically carry more risk than funds investing in well-established "blue-chip" companies and have historically experienced a greater degree of volatility than the average stock.
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.

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