JM Value Fund (Direct) - Growth INF192K01BT3

JM Value earns an Above Average Process Pillar rating.

The main contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 81%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Excellent risk-adjusted performance also influences the rating. This can be seen in the fund's 10-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by the size of its portfolio management team, with four portfolio managers.

This strategy owns more growth stocks than its peers in the Value Morningstar Category. But in terms of market capitalization, it is on par with peers. Looking at additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum is based on the premise that stocks that have recently outperformed will continue to outperform, and those that have underperformed will stay behind. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy also has had lower yield exposure than peers over these years; its portfolio has held fewer stocks with high dividend or buyback yields. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, the strategy had more exposure to high-liquidity stocks compared with Morningstar Category peers in recent months. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. 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 and healthcare relative to the category average by 5.1 and 3.6 percentage points, respectively. The sectors with low exposure compared with category peers are energy and utilities, with energy underweighting the average portfolio by 8.2 percentage points of assets and utilities similar to the average. The portfolio is composed of 53 holdings and is less top-heavy than peers. Specifically, 37.7% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the category’s 39.8% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 98% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.