JPMorgan Value Advantage Fund - I - J.P. Morgan Asset Management
CLOSE

JPMORGAN VALUE ADVANTAGE FUND

The freedom to find value.

With a focus on large-cap stocks, the Value Advantage Fund has the freedom to seek out compelling value opportunities across all market capitalizations.

Fund Story  

Key Points

Expertise
  • Portfolio management team led by experienced value manager Jonathan Simon.
Portfolio
  • Invests primarily in high-quality companies with attractive valuations, strong competitive positions, and good prospects for long-term share price appreciation.
Success
  • Top-decile performance and information ratio over 10-year period.1,2
EXCESS GROWTH OF $100,000 over 10 years

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

Chart source: Morningstar, J.P. Morgan Asset Management; as of 9/30/17. Morningstar Large Value Category. I Shares. Other share classes may have higher expenses, resulting in lower returns. 10-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.

1Source: Morningstar; as of 9/30/17. I Shares. Ranked as follows within the Morningstar Large Value category: 1-yr. (584/1269), 3-yrs. (479/1108), 5-yrs. (337/962) and 10-yrs. (19/689).
2For information ratio, the excess return vs. the Russell 3000 Value divided by tracking error, the Fund (I Shares) ranked within Morningstar Large Value category: 1 yr. (515/1325), 3-yrs. (615/1228), 5-yrs. (485/1142) and 10-yrs. (13/975).

Value investing: Why flexibility matters

February 29, 2016

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

Performance

Performance widget loading ...

Commentary

As of September 30, 2017

Quarter in review
  • The JPMorgan Value Advantage Fund (I Class Shares) underperformed the benchmark, the Russell 3000 Value Index, for the quarter ended September 30, 2017.
  • Our position in DISH Network Corp. (1.4% 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 deals will pressure players to make their own strategic moves to highlight valuable assets, such as Dish’s spectrum. We have our confidence in CEO Charlie Ergen’s strategy to monetize the spectrum, which will be particularly important to satisfy future network demands of 5G deployment.
  • Delta Air Lines, Inc. (1.8% portfolio weighting) was one of the largest stock-specific detractors from performance. Despite muted guidance, we viewed Delta Air Line’s quarterly earnings call positively. In fact, results reinforced our thesis that the industry is regaining pricing power and that normalized profitability is sustainably above the cost of capital. The airline is notably well-run as management has developed a strong brand, successfully gaining the business traveler. Delta Air Line’s management has distinguished itself with respect to capital allocation and specifically how they spend cash flow.
Looking ahead
  • Financials remain the largest absolute sector position within the portfolio. We continue to be invested in a diverse set of diversified money centers, regional banks and insurance companies, but are finding the best opportunities in credit card companies, asset managers and wealth managers.
  • Additionally, we’ve found opportunities in shopping center real estate investment trusts, which should be able to benefit from retailer bankruptcies as they can re-lease the real estate at higher rates.
  • Alternatively, we have been selectively paring back exposure to the consumer discretionary sector given Amazon’s disruption in parts of the market. We’ve been shifting the underlying companies in our portfolio by investing in experiential consumer names.
  • We remain underweight in energy and industrials given the cyclicality in these sectors.

Fees and Minimums

Fees widget loading ...

Portfolio

Portfolio widget loading ...

Management

Fund Managers

Documents

Disclaimer

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 1.14% for A Shares, 1.64% for C Shares, 0.89% for I Shares, 0.75% for L Shares, 1.39% for R2 Shares, 1.14% for R3 Shares, 0.89% for R4 Shares, 0.74% for R5 Shares and 0.64% 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 10/31/2019 for A Shares, 10/31/2019 for C Shares, 10/31/2019 for I Shares, 10/31/2018 for L Shares, 10/31/2019 for R2 Shares, 10/31/2019 for R3 Shares, 10/31/2019 for R4 Shares, 10/31/2019 for R5 Shares and 10/31/2019 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.

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

The Russell 3000 Value Index is an unmanaged index measuring the performance of those Russell 3000 companies (largest 3000 U.S. companies) with lower price-to-book ratios and lower forecasted growth values.

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.

The prices of equity securities are sensitive to a wide range of factors, from economic to company-specific news, and can fluctuate rapidly and unpredictably, causing an investment to decrease in value.
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.

Total return assumes reinvestment of income.

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.

Beta measures a fund's volatility in comparison to the market as a whole. A beta of 1.00 indicates a fund has been exactly as volatile as the market.

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.