JPMorgan Hedged Equity 2 Fund
Name
As of 11/21/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
17.6%
1 yr return
18.5%
3 Yr Avg Return
5.3%
5 Yr Avg Return
N/A
Net Assets
$4.53 B
Holdings in Top 10
39.1%
52 WEEK LOW AND HIGH
$18.5
N/A
N/A
Expenses
OPERATING FEES
Expense Ratio 1.35%
SALES FEES
Front Load N/A
Deferred Load 1.00%
TRADING FEES
Turnover N/A
Redemption Fee N/A
Min Investment
Standard (Taxable)
$1,000
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 11/21/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
JHDCX - Profile
Distributions
- YTD Total Return 17.6%
- 3 Yr Annualized Total Return 5.3%
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 0.09%
- Dividend Yield 0.0%
- Dividend Distribution Frequency Quarterly
Fund Details
-
Legal NameJPMorgan Hedged Equity 2 Fund
-
Fund Family NameJPMorgan Funds
-
Inception DateMar 09, 2021
-
Shares Outstanding16077816
-
Share ClassC
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerHamilton Reiner
Fund Description
The Fund seeks to provide capital appreciation through participation in the broad equity markets while hedging overall market exposure relative to traditional long-only equity strategies.Under normal circumstances, the Fund invests at least 80% of its Assets in equity securities. “Assets” means net assets plus the amount of borrowings for investment purposes. The Fund uses an enhanced index strategy to invest in these equity securities, which primarily consist of common stocks of large capitalization U.S. companies. Because the Fund uses an enhanced index strategy, not all of the stocks in the S&P 500 Index, its primary benchmark, are included in the Fund, and the Fund’s position in an individual stock may be overweighted or underweighted when compared to the index. The Fund will also systematically purchase and sell exchange traded put options and sell exchange traded call options, employing an option overlay known as a “Put/Spread Collar” strategy. The options may be based on the S&P 500 Index or on exchange-traded funds (ETFs) that replicate the S&P 500 Index (S&P 500 ETFs). The combination of the diversified portfolio of equity securities, the downside protection from index put options and the income from the index call options is intended to provide the Fund with a portion of the returns associated with equity market investments while exposing investors to less risk than traditional long-only equity strategies. Specifically, the Fund seeks to provide a competitive risk adjusted return over a full market cycle (defined as three to five years) relative to the S&P 500 Index with lower volatility than traditional long-only equity strategies.The Fund typically holds options for three month periods (each, an “hedge period”) for the purpose of seeking to provide more predictable returns in any market cycle during the applicable hedge period. The put option spread is generally maintained at a level intended to reduce the Fund’s exposure to a market decline by offsetting losses resulting from a decrease in the market. As a result of writing call options to offset the costs associated with the put option spread, some upside may be foregone in certain market environments. The quarterly hedge periods are based on returns from the first business day of February through the last business day of April; the first business day of May through the last business day of July; the first business day of August through the last business day of October; and the first business day of November through the last business day of January of the following calendar year.The Fund’s investments in equity securities will be primarily in common stocks of U.S. companies with market capitalizations similar to those within the universe of the S&P 500 Index. As of the reconstitution of the S&P 500 Index on September 30, 2024, the market capitalizations of the companies in the indexranged from $3.14 billion to $3.54 trillion. Sector by sector, the Fund’s weightings are similar to those of the S&P 500 Index. Within each sector, however, the Fund modestly overweights equity securities that it considers undervalued or fairly valued while modestly underweighting or not holding equity securities that appear overvalued. Because each stock’s weighting in the Fund is controlled relative to that stock’s weight in the S&P 500 Index, the Fund’s weighted average market capitalization will be close to that of the S&P 500 Index.The Fund constructs a Put/Spread Collar by buying a put option on the S&P 500 Index at a higher strike price and writing (or selling) a put option on the same index at a relatively lower strike price, resulting in what is known as a put option spread, while simultaneously selling a S&P 500 Index call option. The Fund may need to construct additional Put/Spread Collars if the size of the Fund increases, either through purchases or appreciation. The Fund’s options overlay strategy is intended to provide the Fund with downside protection, while foregoing some upside potential. A put option spread seeks to protect the Fund against a decline in price, but only to the extent of the difference between the strike prices of the put option purchased and the put option sold. Entering into put option spreads is typically less expensive than a strategy of only purchasing put options and may benefit the Fund in a flat to upwardly moving market by reducing the cost of the downside protection; the downside protection of the put option spread, however, is limited as compared to just owning a put option. The premiums received from writing index call options are intended to provide income which substantially offsets the cost of the put option spread, but writing the options also reduces the Fund’s ability to profit from increases in the value of its equity portfolio because in rising markets the call option will be exercised once the market price rises to the option’s strike price. While the Fund typically constructs the Put/Spread Collar utilizing index options, it may also construct the Put/Spread Collar utilizing options on S&P 500 ETFs.Options positions are marked to market daily. The value of options is affected by changes in the value and dividend rates of the securities represented in the S&P 500 Index underlying the option, changes in interest rates, changes in the actual or perceived volatility of the S&P 500 Index and the remaining time to the options’ expiration, as well as trading conditions in the options market.In addition to the use of the Put/Spread Collar strategy described above, the Fund may use future contracts, primarily futures on indexes, to more effectively gain targeted equity exposure from its cash positions and to hedge the Fund’s portfolio if it is unable to purchase or write the necessary options for its overlay strategy.The Fund is also permitted to use other derivatives such as futures, options and swaps in order to hedge various investments and for risk management. Under certain market conditions, the Fund’s use of other derivatives for cash management or other investment management purposes could be significant.Investment Process — Enhanced Index: To implement the enhanced index strategy, the adviser employs a three-step process that combines research, valuation and stock selection. The adviser takes an in-depth look at company prospects, which is designed to provide insight into a company’s real growth potential. The research findings allow the adviser to rank the companies in each sector group according to their relative value. As part of its investment process, the adviser seeks to assess the impact of environmental, social and governance (ESG) factors on many issuers in the universe in which the Fund may invest. The adviser’s assessment is based on an analysis of key opportunities and risks across industries to seek to identify financially material issues with respect to the Fund’s investments in securities and ascertain key issues that merit engagement with issuers. These assessments may not be conclusive and securities of issuers that may be negatively impacted by such factors may be purchased and retained by the Fund while the Fund may divest or not invest in securities of issuers that may be positively impacted by such factors.On behalf of the Fund, the adviser then buys and sells equity securities, using the research and valuation rankings as a basis. In general, the adviser buys equity securities that are identified as attractive and considers selling them when they appear less attractive based on the Fund’s process. Along with attractive valuation, the adviser often considers a number of other criteria:●catalysts that could trigger a rise in a stock’s price●impact on the overall risk of the portfolio relative to the S&P 500 Index●high perceived potential reward compared to perceived potential risk●possible temporary mispricings caused by apparent market overreactions.Investment Process — Options Overlay Strategy: To implement the Put/Spread Collar strategy, the adviser utilizes exchange traded equity options based either on the S&P 500 Index or on S&P 500 ETFs. The Put/Spread Collar is constructed by buying a put option at a higher strike price while writing a put option at a relatively lower strike price and simultaneously selling a call option that substantially offsets the cost of the put option spread. The Put/Spread Collar strategy is an actively managed process and is designed to provide a continuous market hedge for the portfolio. The put option spread is generally maintained at a level intended to protect the Fund from a decrease in the market of 5% to 20%, with potential upside generally capped at 3.5-5.5%. The upside cap could be more or less depending on market conditions. The options are systematically reset on at least a quarterly basis to better capitalize on current market conditions and opportunities while seeking to provide predictable returns in all market cycles.
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JHDCX - Performance
Return Ranking - Trailing
| Period | JHDCX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 17.6% | -73.0% | 32.1% | 36.36% |
| 1 Yr | 18.5% | -0.7% | 140.9% | 13.31% |
| 3 Yr | 5.3%* | -7.0% | 22.3% | 46.76% |
| 5 Yr | N/A* | 2.9% | 23.0% | 24.21% |
| 10 Yr | N/A* | 2.1% | 15.3% | N/A |
* Annualized
Return Ranking - Calendar
| Period | JHDCX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 14.0% | -40.9% | 2181.7% | 79.26% |
| 2022 | -18.8% | -22.7% | 41.1% | 97.35% |
| 2021 | N/A | -100.0% | 17.1% | 6.25% |
| 2020 | N/A | -100.0% | 33.2% | 93.32% |
| 2019 | N/A | -44.8% | 25.0% | 79.76% |
Total Return Ranking - Trailing
| Period | JHDCX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 17.6% | -72.7% | 32.1% | 36.36% |
| 1 Yr | 18.5% | -0.7% | 140.9% | 13.31% |
| 3 Yr | 5.3%* | -7.0% | 22.3% | 62.12% |
| 5 Yr | N/A* | 2.9% | 23.0% | 32.94% |
| 10 Yr | N/A* | 2.1% | 15.3% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | JHDCX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 14.3% | -40.9% | 2181.7% | 80.19% |
| 2022 | -13.9% | -21.6% | 41.1% | 97.35% |
| 2021 | N/A | -100.0% | 17.1% | 24.67% |
| 2020 | N/A | -100.0% | 33.2% | 99.02% |
| 2019 | N/A | -13.4% | 26.8% | 91.94% |
NAV & Total Return History
JHDCX - Holdings
Concentration Analysis
| JHDCX | Category Low | Category High | JHDCX % Rank | |
|---|---|---|---|---|
| Net Assets | 4.53 B | 20 | 1.15 T | 72.04% |
| Number of Holdings | 166 | 1 | 3755 | 29.60% |
| Net Assets in Top 10 | 1.86 B | -247 M | 246 B | 84.20% |
| Weighting of Top 10 | 39.10% | 2.0% | 100.0% | 8.07% |
Top 10 Holdings
- Microsoft Corp. 8.11%
- NVIDIA Corp. 7.18%
- Apple, Inc. 7.00%
- Amazon.com, Inc. 4.46%
- Meta Platforms, Inc., Class A 2.84%
- Alphabet, Inc., Class A 2.40%
- JPMorgan U.S. Government Money Market Fund, Class IM 2.05%
- Alphabet, Inc., Class C 1.80%
- Exxon Mobil Corp. 1.73%
- UnitedHealth Group, Inc. 1.53%
Asset Allocation
| Weighting | Return Low | Return High | JHDCX % Rank | |
|---|---|---|---|---|
| Stocks | 101.30% | 0.00% | 193.92% | 99.73% |
| Cash | 2.14% | -94.07% | 100.00% | 48.28% |
| Preferred Stocks | 0.00% | 0.00% | 11.50% | 66.09% |
| Convertible Bonds | 0.00% | 0.00% | 10.44% | 75.86% |
| Bonds | 0.00% | -9.53% | 99.90% | 0.13% |
| Other | -3.44% | -15.45% | 100.00% | 27.30% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | JHDCX % Rank | |
|---|---|---|---|---|
| Technology | 24.46% | 0.00% | 57.80% | 34.04% |
| Healthcare | 14.37% | 0.00% | 52.91% | 52.34% |
| Financial Services | 13.62% | 0.00% | 72.27% | 56.17% |
| Consumer Cyclical | 12.38% | 0.00% | 63.52% | 47.66% |
| Industrials | 8.47% | 0.00% | 29.19% | 43.83% |
| Communication Services | 8.18% | 0.00% | 31.09% | 58.72% |
| Consumer Defense | 6.32% | 0.00% | 44.33% | 31.91% |
| Energy | 4.10% | 0.00% | 20.22% | 64.68% |
| Utilities | 2.85% | 0.00% | 19.11% | 56.60% |
| Real Estate | 2.83% | 0.00% | 51.99% | 42.98% |
| Basic Materials | 2.43% | 0.00% | 37.14% | 40.00% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | JHDCX % Rank | |
|---|---|---|---|---|
| US | 101.30% | 0.00% | 191.86% | 54.02% |
| Non US | 0.00% | 0.00% | 62.89% | 32.47% |
JHDCX - Expenses
Operational Fees
| JHDCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.35% | 0.01% | 24.34% | 57.77% |
| Management Fee | 0.25% | 0.00% | 2.00% | 21.69% |
| 12b-1 Fee | 0.75% | 0.00% | 1.00% | 78.64% |
| Administrative Fee | 0.08% | 0.00% | 0.95% | N/A |
Sales Fees
| JHDCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 1.00% | 5.75% | N/A |
| Deferred Load | 1.00% | 0.95% | 5.00% | N/A |
Trading Fees
| JHDCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 0.25% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| JHDCX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | N/A | 0.00% | 438.00% | 33.83% |
JHDCX - Distributions
Dividend Yield Analysis
| JHDCX | Category Low | Category High | JHDCX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 0.00% | 0.00% | 14.43% | 15.68% |
Dividend Distribution Analysis
| JHDCX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Quarterly | Annually | Monthly | Annually |
Net Income Ratio Analysis
| JHDCX | Category Low | Category High | JHDCX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | 0.09% | -3.04% | 16.95% | 31.20% |
Capital Gain Distribution Analysis
| JHDCX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Semi-Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 20, 2023 | $0.023 | OrdinaryDividend |
| Sep 27, 2023 | $0.005 | OrdinaryDividend |
| Jun 28, 2023 | $0.010 | OrdinaryDividend |
| Dec 20, 2022 | $0.027 | OrdinaryDividend |
| Dec 13, 2022 | $0.817 | OrdinaryDividend |
| Sep 28, 2022 | $0.009 | OrdinaryDividend |
| Jun 28, 2022 | $0.006 | OrdinaryDividend |
| Dec 30, 2021 | $0.003 | OrdinaryDividend |
| Dec 20, 2021 | $0.001 | OrdinaryDividend |
| Mar 29, 2021 | $0.003 | OrdinaryDividend |
JHDCX - Fund Manager Analysis
Managers
Hamilton Reiner
Start Date
Tenure
Tenure Rank
Feb 26, 2021
1.26
1.3%
Hamilton Reiner, a Managing Director of J.P. Morgan Investment Management, Inc., is responsible for implementing the Fund’s overlay options strategy and for providing insight with respect to the impact to the options strategy of purchasing certain securities. Mr. Reiner has been the head of U.S. Equity Derivatives at JPMIM since 2012. He joined JPMorgan Chase in 2009 and from 2009 to 2012, he was a portfolio manager and head of U.S. Equity Derivatives at JPMorgan Chase. Prior to joining the firm, Mr. Reiner was head of the Equity Long/Short Prime Brokerage platform at Barclays Capital.
Raffaele Zingone
Start Date
Tenure
Tenure Rank
Feb 26, 2021
1.26
1.3%
Raffaele Zingone, managing director, is a portfolio manager on the U.S. Disciplined Equity Team. An employee since 1991, Ralph is responsible for the Research Enhanced Index (REI) strategies. Prior to this role, he was a research analyst following the aerospace, environmental, and diversified manufacturing sectors. Upon joining the firm, he was a quantitative equity analyst and later served as a U.S. Equity portfolio manager in London and New York. Ralph received his B.A. in mathematics and economics from the College of the Holy Cross and his M.B.A. in finance from New York University. He is a CFA charterholder.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.02 | 42.27 | 6.23 | 1.25 |