JM Large Cap Fund Payout of Income Distribution cum capital withdrawal INF192K01585

JM Large Cap earns an Average Process Pillar rating.

The most meaningful contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 63%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The size of the portfolio management team also bolsters the process. With four portfolio managers, the fund is reasonably well-resourced. However, the process is limited by the parent firm's five-year retention rate of 67%, which raises concerns about long-term strategic consistency..

This strategy tends to hold smaller, more value-oriented companies than its average peer in the Large-Cap Morningstar Category. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last 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 tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such exposure tends to pay off when markets are hot and to be costly when they are not. In this month, the strategy also had more exposure to the Volatility factor over its peers. 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 industrials and communication services relative to the category average by 3.0 and 2.9 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and energy, underweight the average by 4.3 and 4.2 percentage points of assets, respectively. The portfolio is positioned across 51 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 39.7% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category average's 51.3%.