JPMorgan International Unconstrained Equity Fund - I - 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.


Harness a world of opportunity.

The International Unconstrained Equity Fund focuses on maximizing return potential by flexibly pursuing our best investment ideas across all regions and sectors of the international markets.

Fund Story   Commentary  

Key Points

  • Leverages the deep local knowledge of approximately 200 “feet on the ground” investment professionals in our regional teams, combined with the insights of our experienced sector specialists.
  • Can access the full range of international investment opportunities, regardless of benchmark guidelines.
  • Top-decile performance over three years and top-quintile performance over five years.1
  • Top-decile batting average over three- and five-years1
  • Outperformed its benchmark 100% of the time over rolling 3-year period for the past five years.

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

1Source: Morningstar as of 6/30/17. I Shares. Ranked: 1 yr. (207/740), 3-yrs. (54/595), 5-yrs. (97/533), 10-yrs. N/A. Consistency is measured by batting average — calculated by dividing the number of quarters/months where the manager beats/matches the index by the total number of quarters/months in the period: 1-yr. (90/770 funds), 3-yrs. (1/667 funds) and 5-yrs. (15/633 funds). 10-yr. (17/610). Past performance does not guarantee future results.

Chart source: Morningstar, J.P. Morgan Asset Management; as of 6/30/17. Foreign Large Blend category. Shown for the I Share class. Other share classes may have higher expenses, which would result in lower returns. Since inception (11/30/11) with dividend 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.


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As of June 30, 2017

Quarter in review
  • The JPMorgan International Unconstrained Equity Fund (I Class Shares) outperformed its benchmark, the MSCI All Country World Index, ex-U.S. (net of foreign withholding taxes), for the quarter ended June 30, 2017.
  • HDFC Bank Ltd. (2.7% portfolio weighting), the Indian financial services company, contributed to performance in the quarter. The earnings report indicated that its core business and assets under management grew in the mid-teens in year-on-year percentage terms, as HDFC continues to have attractive offerings for the burgeoning consumer population. We still hold the stock as we believe the trend favoring this growing middle class in India should be a long-term tailwind for multi-year growth.
  • Samsung Electronics Co. Ltd. (2.5% portfolio weighting), the Korean electronics manufacturer, performed well in the quarter. The stock was up after strong earnings, where quarterly net margin reached a 10-year high. Our analysts view Samsung as an industry leader in memory, smartphones and display, which are driving above average growth. In addition, the company has focused on improving shareholder returns through buybacks and dividends.
  • LafargeHolcim Ltd. (1.2% portfolio weighting), the Swiss cement company, detracted from performance. Weakness in commodities pressured materials, but LafargeHolcim also faced pressure after CEO Eric Olsen resigned following a probe into the firm’s Syrian operations. Despite this setback, reported earnings beat analyst estimates, and the firm continues to shore up its balance sheet and return capital to shareholders. We maintain the position as we believe management’s efforts to restructure the business will continue to yield results, and believe that the stock is attractively priced given future upside potential.
  • TechnipFMC plc (1.2% portfolio weighting), the U.K.-domiciled energy services company, underperformed during the quarter. The weak oil market drove the stock price lower, and the company also reported weaker results in the quarter. We continue to believe this year will be transformative for the company as it has become the leading provider of subsea production and processing equipment, and generates some of the best returns in the industry. The industry’s shift towards greater vendor-based integration will also benefit the company.
Looking ahead
  • Although the U.S. economy is entering the later stages of the cycle, imminent risk of a recession appears low and we expect continued growth in earnings going forward.
  • A key question for the rest of the year will be how bond and equity markets withstand a gradual reduction in monetary stimulus, which has helped to support markets in recent years.
  • While this uncertainty raises the prospects for more volatility, a healthy global economy will continue to drive equity markets forward.

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 1.25% for A Shares, 1.75% for C Shares, 0.90% for I Shares, 1.50% for R2 Shares, 0.80% 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 2/28/2018 for A Shares, 2/28/2018 for C Shares, 2/28/2018 for I Shares, 2/28/2018 for R2 Shares, 2/28/2018 for R5 Shares and 2/28/2018 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.

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

The MSCI All Country World Index, ex-U.S. (net of foreign withholding taxes) is a free float-adjusted market capitalization weighted index measuring equity market performance of developed and emerging markets, excluding the United States.

The performance of the Lipper International Large-Cap Growth 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.

International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns.
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.