JM Focused Fund (Direct) - IDCW Reinvestment Option INF192K01BV9

JM Focused earns an Average Process Pillar rating.

The primary contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 58%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Management team experience, which averages ten years at this fund, also strengthens the process. However, the process is limited by the fund's unremarkable 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 is similar to its Focused Fund category peers in terms of market-cap 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 has also tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over peers in recent years. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. Furthermore, the strategy had more exposure to high-volatility stocks compared with Morningstar Category peers in recent months. This orientation tends to pay off most prominently when markets are hot. 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 industrials relative to the category average by 12.2 and 7.3 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and technology, underweight the average by 3.8 and 3.6 percentage points of assets, respectively. The portfolio is positioned across 28 holdings and is relatively top-heavy. Of the strategy's assets, 44.5% are concentrated within the top 10 holdings, compared to the typical peer's 33.6%.