JM Focused Fund (Direct) - Growth Option INF192K01BW7

JM Focused earns an Above Average Process Pillar rating.

The most meaningful contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 82%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent firm's impressive risk-adjusted performance, as shown by its average overall Morningstar Rating of 3.9 stars, also supports the process. However, the process is limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

This strategy does not differentiate itself from its Focused Fund category peers in terms of size and style exposure. Analyzing additional factors, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Furthermore, the strategy had more exposure to high-volatility stocks compared with Morningstar Category peers in recent months. Such exposure tends to pay off when markets are hot and to be costly when they are not. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in consumer cyclical by 11.1 percentage points in terms of assets compared with the category average, and its industrials allocation is similar to the category. The sectors with low exposure compared with category peers are financial services and basic materials, underweight the average by 5.8 and 4.1 percentage points of assets, respectively. The portfolio is composed of 27 holdings and is relatively concentrated. In particular, 53.2% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 33.9% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 126% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.