JPMorgan Growth Advantage Fund - R5 - 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.


Growth investing with freedom to roam.

Anchored in large-cap growth stocks, the Growth Advantage Fund has the flexibility to pursue compelling growth opportunities across all market capitalizations.

Fund Story   Quarterly Fact Sheet   Commentary  

Key Points

  • Experienced portfolio manager Tim Parton is supported by 10 dedicated growth analysts.
  • Seeks companies with large or growing addressable markets, a sustainable competitive advantage and strong management execution.
  • Flexibility to invest in the best growth companies regardless of market capitalization.
  • Top-decile performance, batting average and information ratio over the 5- and 10-yr. periods.1
EXCESS GROWTH OF $100,000 over 10 years

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

Source: Morningstar, J.P. Morgan Asset Management; as of 6/30/17. Morningstar Large Growth Category. Returns shown are for the I Share class. Other share classes may have higher expenses, which would result in lower returns. Returns with dividend and capital gains reinvested. There is no direct correlation between a hypothetical investment and the anticipated performance of the Fund. The Fund changed its investment strategy from a mid-cap to multi-cap fund on 8/31/05. There can be no assurance that the current portfolio manager will continue to manage the fund or that past performance is an indicator of future performance. The $0 value for benchmark growth is the baseline for the over and under comparison.

1 The Fund (I Shares) was ranked: 1-yr. (193/1424), 3-yrs. (222/1277), 5-yrs. (63/1152) and 10-yrs. (50/803). Batting average measures consistency—calculated by dividing the number of months where the manager beats/matches the index by the total number of months in the period: 1-yr. (1/1459), 3-yrs. (6/1410), 5-yrs. (8/1388) and 10-yrs. (24/1162). For information ratio, the excess return vs. the benchmark divided by tracking error. 1 yr. (110//1459), 3-yrs. (261/1410), 5-yrs. (85/1388) and 10-yrs. (61/1162). Past performance does not guarantee future results.

The growth advantage strategy

Tim Parton, portfolio manager, suggests that by focusing on investment in the best companies regardless of capitalization, this innovative strategy offers two key advantages that make it stand out.


Performance widget loading ...


As of June 30, 2017

Quarter in review
  • The JPMorgan Growth Advantage Fund (I Class Shares) outperformed its benchmark, the Russell 3000 Growth Index, for the quarter ended June 30, 2017.
  • Within the large-cap space, growth continued to outperform value as higher-growth stocks that have exceeded earnings expectations have been rewarded. This has been favorable for our approach.
  • An overweight position in Wayfair, Inc. (0.7% portfolio weight) was the top contributor. Online home furnishings company Wayfair outperformed after delivering a solid first quarter. Management also raised second-quarter top-line guidance about 5% above consensus. Growth in its U.S. business is re-accelerating after increasing staffing and introducing new categories last year. The company has a number of new initiatives, including seasonal, bridal, international and minimized shipping times, which provide added avenues for continued growth.
  • An overweight position in Electronic Arts, Inc. (2.0% portfolio weight) was also a top contributor. Entertainment software company Electronic Arts posted revenues and earnings results that were above consensus estimates. Management also communicated fiscal 2018 guidance that further bolstered investor sentiment. Anticipation continues to build for Electronic Art’s upcoming Star Wars title, which will be released in the fourth quarter. This remains a high-conviction holding in the portfolio given the company’s attractive margins and strong cash flow generation.
  • An overweight position in HD Supply, Inc. (0.0% portfolio weight) was the top detractor. HD Supply, a leader in facilities maintenance, water infrastructure and construction industrial distribution businesses, underperformed due to a dilutive sale of its water infrastructure distribution business and continued lackluster performance in its flagship facilities maintenance distribution business. These results contradicted our initial investment thesis and the quality of management has been called into question. Given our reduced conviction in the company’s ability to drive share gains, we opted to exit our position.
  • An overweight position in Cavium, Inc. (0.7% portfolio weight) also detracted. The semiconductor manufacturer traded lower on little fundamental news. The overall semiconductor space lagged towards quarter-end and Cavium was also impacted by the index rebalancing process. We continue to be positive on the business’s growth trajectory given its exposure to the strong tailwinds of optical, data center and cloud spending.
Looking ahead
  • Portfolio positioning has not changed materially during the quarter.
  • Exposure to steady growth companies continues to slowly increase at the expense of pro-cyclical growth as the economic cycle has progressed and the opportunity set within cyclicals has narrowed. However, we remain positive on certain end-markets, such as housing and commercial real estate, as well as select financials, which remains the second-largest overweight after technology.
  • The consumer staples and consumer discretionary sectors continue to be the largest underweights.  

Fees and Minimums

Fees widget loading ...


Portfolio widget loading ...


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, 1.74% for C Shares, 0.99% for I 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, 7/31/2018 for R2 Shares, 5/31/2018 for R3 Shares, 5/31/2018 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 3000 Growth 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 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.

Small-capitalization investments typically carry more risk than investments in well-established "blue-chip" companies since smaller companies generally have a higher risk of failure. Historically, smaller companies' stock has experienced a greater degree of market 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.

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.