JPMorgan U.S. Equity Fund - R2 - J.P. Morgan Asset Management


Core exposure to U.S. insights.

With its proven, long-term investment philosophy, the U.S. Equity Fund is designed as a strong portfolio foundation for large-cap investors.

Fund Story  

Key Points

  • Experienced portfolio managers whose investment philosophy is driven by a proprietary, robust investment process with proven long-term performance.
  • Seeks to capture the best ideas of dedicated career analyst team, using a time-tested process for researching, ranking and selecting stocks.
  • Top-decile performance, batting average and information ratio over the10-year period.1

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

1Morningstar 9/30/17. Ranked: 1-yr. (380/1396), 3-yrs. (402/1218), 5-yrs. (124/1083) and 10-yrs. (51/799). Information ratio, the excess return vs. the benchmark divided by tracking error. Ranked: 1-yr. (394/1444), 3-yrs. (360/1332), 5-yrs. (139/1251) and 10-yrs. (39/1084). Batting average measures manager’s ability to meet or beat the market consistently, calculated by dividing the number of quarters/months when the manager beats/matches the index by the total number of quarters/months in the period. Ranked: 1-yr. (131/1444), 3-yrs. (7/1332), 5-yrs. (7/1251) and 10-yrs. (25/1084).

Chart source: Morningstar, J.P. Morgan Asset Management; as of 9/30/17. Large Blend Category. I Shares. 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.


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As of September 30, 2017

Quarter in review
  • The JPMorgan U.S. Equity Fund (I Class Shares) underperformed the benchmark, the S&P 500 Index, for the quarter ended September 30, 2017.
  • In information technology, an overweight in Texas Instruments, Inc. (1.9% portfolio weighting) contributed as the company reported strong revenue growth in its auto and industrial end markets. The company remains one of our favorite long-term investments as its strong, diversified business model continues to expand margins and return more cash to shareholders
  • In consumer staples, an underweight in Altria Group, Inc. (0.0% portfolio weighting) added value after reporting disappointing quarterly earnings due to an overall volume decline and modest share loss. We are finding more attractive names within the space as Altria is likely to face further pressures from industry volume declines and heightened competition.
  • In industrials, an overweight position in United Continental Holdings, Inc. (0.4% portfolio weighting) weighed on performance after competitive pricing efforts with rival Spirit Airlines lowered investor sentiment and drove multiple compression. We still believe in the long-term story of margin expansion, but have reduced our near-term exposure due to a lack of clarity from management about medium-term financial targets and how long the price competition may last.
  • In energy, an overweight in Pioneer Natural Resources Co. (1.3% portfolio weighting) detracted after its latest quarterly earnings revealed production delays and a rising Gas-to-Oil (GoR) ratio. We believe the GoR increase speaks favorably to gas execution and that its structurally advantaged cash margin creation will drive returns.
Looking ahead
  • We expect the momentum experienced thus far this year to largely continue throughout the remainder of 2017. The continuation of the earnings environment experienced during the last few quarters should be largely supportive of our positioning.
  • Our core sector tilts have remained constant, as we are retaining our favorable view of big banks and brokers, health services and systems and insurance, and our negative stance on consumer staples, real estate investment trusts and utilities.
  • The Fund continues to be a broadly diversified portfolio of U.S. large-cap stocks, seeking to add value through bottom-up stock selection as the primary driver of excess returns.

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 0.94% for A Shares, 1.44% for C Shares, 0.69% for I Shares, 0.61% for L Shares, 1.19% for R2 Shares, 0.94% for R3 Shares, 0.69% for R4 Shares, 0.54% for R5 Shares, 0.44% for R6 Shares and 0.94% for T 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, 10/31/2019 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, 10/31/2019 for R6 Shares and 10/31/2018 for T 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. Index levels are in total return USD.

The performance of the Lipper Large-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.

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.
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.