JM Focused Fund - IDCW Reinvestment Option INF192K01569

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 61%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Management team experience, which averages ten years at this fund, also supports the rating. 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 hews closely to the market cap and investment style of its Focused Fund category peers. Looking at additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. The strategy also had more exposure to high-volatility stocks compared with Morningstar Category peers in the most recent month. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Additionally, the strategy had more exposure to high-momentum stocks compared with Morningstar Category peers in recent months. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. 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 11.7 and 5.2 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and utilities, underweight the average by 8.8 and 2.5 percentage points of assets, respectively. The portfolio is positioned across 30 holdings and is relatively top-heavy. Of the strategy's assets, 45.7% are concentrated within the top 10 holdings, compared to the category’s 33.6% average.