JPMorgan Equity Income Fund (HLIEX). A Track Record of Outperformance. - J.P. Morgan Asset Management

The JPMorgan Equity Income Fund has left average behind

Since portfolio manager Clare Hart started managing the fund in the beginning of 2005, a $100,000 investment would have returned $55,188 more than the same investment in the iShares Russell 1000 Value ETF, even after fees.



Chart source: Morningstar, J.P. Morgan Asset Management; data from when Clare Hart began managing the fund in 12/31/2004 through 3/31/2018. Primary competitor iShares Russell 1000 Value ETF. Returns for I Share class. Other share classes may have higher expenses, which would result in lower returns. Growth with dividends and capital gains reinvested. There is no direct correlation between a hypothetical investment and the anticipated performance of the Fund. Performance quoted is past performance and is no guarantee of future results. Unless stated otherwise, performance data 1) do not take into account any costs associated with the issue or redemption of shares and 2) assumes that gross income is reinvested.

Attractive performance achieved with lower risk

The Fund’s focus on high-quality U.S. companies with healthy and sustainable dividends has also delivered lower volatility1 than its peers and superior performance in down markets.


Morningstar Rating™   |  Large Value

Source: Morningstar. I Shares. Three-year rating: 4 stars, 1086 funds rated. Five-year rating: 4 stars, 958 funds rated. Ten-year rating: 5 stars, 687 funds rated. Overall rating, 1086 funds were rated. Ratings reflect risk-adjusted performance. Different share classes may have different rankings. Rankings do not take sales load into account. The Overall Morningstar Rating™ is derived from a weighted average of the performance figures associated with the fund's 3-, 5- and 10-year (as applicable) Morningstar Rating metrics.

Chart source: Morningstar, J.P. Morgan Asset Management as of 3/31/18. 11th percentile 10-yr. down capture ratio, Morningstar Large Value. Down capture measures performance of the manager relative to the index in down markets: 1-yr. (394/1311), 3-yrs. (250/1210), 5-yrs. (230/1136) and 10-yrs. (101/972). 110th percentile 10-yr. standard deviation vs. Morningstar Large Value category. Risk is measured by standard deviation — a gauge of the variance of a manager’s return over its average or mean: 1-yr. (533/1311), 3-yrs. (203/1210), 5-yrs. (226/1136) and 10-yrs. (96/972).




AS OF 3/31/18

Performance quoted is past performance and is no guarantee of future results. Investment returns and principal value will fluctuate, so shares, when sold, may be worth more or less than original cost. Current performance may be higher or lower than returns shown. Call 1-800-480-4111 for most recent month-end performance.

Unless stated otherwise, performance data 1) do not take into account any costs associated with the issue or redemption of shares and 2) assumes that gross income is reinvested. The benchmark is for reference only; the Fund does not attempt to duplicate the composition or performance of the benchmark.

The JPMorgan Equity Income Fund and iShares ETF have similar investable universes but are different investment vehicles with differing investment approaches. The mutual fund is benchmarked against the Russell 1000 Value index but is actively managed, resulting in the potential for higher turnover and increased volatility versus its index if the portfolio manager chooses to increase or decrease exposure to specific sectors and/or securities. The ETF is designed to very closely track the same Russell 1000 Value index and is not actively managed. Market cap-weighted passive strategies may have lower turnover than actively managed strategies, which can impact potential capital gain distributions and therefore tax considerations. The inherent structure of ETFs in general may also be more tax-efficient than that of mutual funds. Please consult an investment or tax professional for more information.


Fund Objective Investment Strategy Risks
Equity Income Fund The Fund seeks capital appreciation and current income. Under normal circumstances, at least 80% of the Fund’s Assets will be invested in the equity securities of corporations that regularly pay dividends, including common stocks and debt securities and preferred stock convertible to common stock. Although the Fund invests primarily in securities of large cap companies, it may invest in equity investments of companies across all market capitalizations. Equity market, general market, value strategy, large cap company, smaller company, derivatives, real estate securities, industry and sector focus, and transactions risks.
iShares Russell 1000 Value ETF The ETF seeks to track investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics. The Fund seeks to track the investment results of the Russell 1000® Value Index (the “Underlying Index”), which measures the performance of large- and mid-capitalization value sectors of the U.S. equity market. It is a subset of the Russell 1000® Index, which measures the performance of the large- and mid-capitalization sector of the U.S. equity market. As of March 31, 2017, the Underlying Index represented approximately 49.70% of the total market value of the Russell 1000 Index. BFA uses a “passive or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the index it tracks and does not seek temporary defensive positions when markets decline or become overvalued.” Asset Class, AUM, Authorized participant concentration, concentration, cyber security, equities securities, financials sector, index-related, issuer, large-cap companies, management, market, market trading, operational, passive investment, risk of investing in the US, securities lending, tracking error, and value securities risks.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purpose. Any examples used are generic, hypothetical and for illustration purposes only. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor’s own situation.
ETFs and Mutual Funds are different investment vehicles. ETFs are funds that trade like other publicly traded securities. Similar to shares of an index mutual fund, each ETF share represents an ownership interest in an underlying portfolio of securities and other instruments typically intended to track a market index. Unlike shares of a mutual fund, shares of an ETF may bought and sold intraday.
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%.
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 0.79% for I Shares of the average daily net assets. This waiver is in effect through 10/31/2018, at which time the adviser and/or its affiliates will determine whether to renew or revise it.
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.
There is no guarantee that companies will declare, continue to pay or increase dividends. Total return assumes reinvestment of income.
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 I Shares.
Risk measures are calculated based upon the Funds' broad-based index as stated in the prospectus.
Index returns are for illustrative purposes only. Mutual funds and ETFs 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, which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. Investors can not invest directly in an index.
The Morningstar Rating™ 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 Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the manager research analysts of Morningstar. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Analysts use this five pillar evaluation to determine how they believe funds are likely to perform over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflect an Analyst’s conviction in a fund’s prospects for outperformance. Analyst Ratings are continuously monitored and reevaluated at least every 14 months.
For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.