JM Large Cap Fund Growth INF192K01601

JM Large Cap earns an Average Process Pillar rating.

The largest 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 outperformed their respective category's median return for the period. Low expenses across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also influence the rating. The pattern of low expenses at the firm indicates that it is focused on delivering strong results for investors. 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 leans toward smaller, more value-oriented companies compared with its average peer in the Large-Cap Morningstar Category. Examining 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 market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. Different from its historical appetite, however, the Momentum factor was in line with the Morningstar Category average in recent months. This strategy has also exhibited a tilt towards more high-liquid assets over peers in recent years, evidenced by consistently holding companies with relatively higher trading volumes. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In the most recent month, however, the fund's Liquidity exposure was in line with the Morningstar Category average. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In recent months, however, the strategy had less Quality factor exposure 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 basic materials relative to the category average by 6.1 and 3.0 percentage points, respectively. The sectors with low exposure compared with category peers are energy and financial services, underweight the average by 4.0 and 3.2 percentage points of assets, respectively. The portfolio is positioned across 49 holdings and its assets are more dispersed than peers in the category. In particular, 40.5% of the portfolio's assets are concentrated in the top 10 fund holdings, as opposed to the category average's 51.2%.