JPMORGAN GLOBAL ALLOCATION FUND
There’s growth to be found when you know where to look.
With access to the entirety of J.P. Morgan’s global investment platform, the Global Allocation Fund searches worldwide to maximize total return, while also managing risk.
- A single-point access to the best of J.P. Morgan’s broad global investment platform.
- With broad allocation ranges, this flexible, capital appreciation-oriented solution represents J.P. Morgan’s highest conviction ideas across asset classes.
- It has delivered top-quintile performance over 3-years and top-decile performance for the 5-year periods.1
- Top-quartile performance 84% of the time over rolling 3-year period since inception.1
CUMULATIVE RETURNS SINCE INCEPTION, SELECT SHARES (5/31/11 – 9/30/16)
Source: J.P. Morgan Asset Management. Data as of 12/31/16. Shown for illustrative purposes only. Past performance is no guarantee of future results.
1World Allocation Category.Morningstar as of 12/31/16. Select Shares. Ranked: 1-yr (245/485), 3-yrs. (47/409), 5-yrs. (24/322) and 10-yrs. period n/a.
Fees and Minimums
Management and Commentary
About the team
Leverages a team of over 100 J.P. Morgan Multi-asset investment professionals worldwide:
- Includes 37 CFA charterholders, 22 MBAs, 6 PhDs.
- Access to a fund platform with 1.8 trillion in global assets under management.
- Invested for the world’s largest institutions and wealthiest individuals for over 40 years
- Lead portfolio manager Jeff Geller has 37 years of industry experience with 9 at J.P. Morgan
Month in review:
- The JPMorgan Global Allocation Fund (Select Class Shares) returned 1.52% in December.
- The Federal Reserve (Fed) raised short-term interest rates by a quarter of a point, to between 0.50% and 0.75%. The Fed also increased its outlook for subsequent rate increases in 2017, now anticipating three quarter-point moves. Officials indicated that upside risks to their economic forecasts increased as a result of prospects for more expansionary fiscal policies. Elsewhere, the European Central Bank decided to extend its asset-purchase program through 2017, although at a reduced level after March.
- Oil prices continued higher as big producers outside the Organization of the Petroleum Exporting Countries (OPEC), including Russia, agreed to cut output by approximately 550,000 barrels a day. The move follows a reduction of 1.2 million barrels a day, agreed to by OPEC in November.
- The Fund outperformed its composite benchmark in December, with the EAFE Equity and U.S. High Yield sleeves having the largest positive contributions to performance. We continued to increase our developed market equity allocation and reduce duration.
- The long decline in U.S. interest rates appears to be behind us and, absent a severe economic shock, we believe that we are firmly in a reflationary environment. We continue to be positive on equities as the potential for a fiscal boost in the U.S. gives scope for above trend growth in the second half of 2017.
- We also continue to focus our risk in U.S. equities, and have been adding to small-cap equities on the margin, which are better-positioned for a pro-growth, rising dollar environment. Additionally, we have increased exposure to Japanese equities as a weakening yen and rising exports should be supportive for Japanese equities. We have hedged nearly all of our exposure to the yen as we expect the dollar to continue to strengthen. Given the expectation for continued market volatility, we hold some of our global equity exposure in call options as a way to manage risk, but still capture potential market gains.
- We continue to believe that credit will be the most attractive area within fixed income and strongly emphasize our credit positions relative to global government bonds. We believe high yield continues to provide attractive carry and some spread cushion in the event that interest rates continue to move higher. Additionally, given our reflationary view, we have further reduced duration by increasing our short position in five-year Treasury futures.
Total return assumes reinvestment of income.
The cap on annual operating expenses is guaranteed in a fee waiver contract with the investment advisor, administrator and distributor. The cap does not extend to acquired fund costs, dividend expenses relating to short sales, interest, taxes, extraordinary expenses and expenses related to the Board of Trustees' deferred compensation plan. The cap may be modified or discontinued after 2/28/2017. "Total reductions" includes all applicable fee waivers and expense reimbursements.
Mutual funds have fees that reduce their performance: indexes do not. You cannot invest directly in an index.
MSCI World Index (net of foreign withholding taxes) is a broad measure of the performance of developed countries' equity markets.
The Bloomberg Barclays Global Aggregate Index provides a broad-based measure of the global investment-grade fixed income markets. Comprised of U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices as well as Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. Constituents must be rated Baa3/BBB- or higher by at least two of the following: Moody's, S&P, Fitch.
The Global Allocation Composite Index is a composite benchmark of unmanaged indexes that includes 60% MSCI World Index (net of foreign withholdings taxes) and 40% Bloomberg Barclays Global Aggregate (Unhedged USD).
The performance of the Lipper Flexible Portfolio Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. An individual cannot invest directly in an index.
The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index representing SEC-registered taxable and dollar denominated securities. It covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through, and asset-backed securities.
Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges, where applicable. Performance may reflect the waiver of a portion of the Fund's advisory or administrative fees and/or reimbursement of certain expenses for certain periods since the inception date. If fees had not been waived and/or certain expenses were not reimbursed, performance would have been less favorable.
Â©2017, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
There may be additional fees or expenses associated with investing in a Fund of Funds strategy.
International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns.
The top 10 holdings listed reflect only the Fund's long-term investments. Short-term investments are excluded. Holdings are subject to change. The holdings listed should not be considered recommendations to purchase or sell a particular security. Each individual security is calculated as a percentage of the aggregate market value of the securities held in the Fund and does not include the use of derivative positions, where applicable.
Beta measures a fund's volatility in comparison to the market as a whole. A beta of 1.00 indicates a fund has been exactly as volatile as the market.
Sharpe ratio measures the fund's excess return compared to a risk-free investment. The higher the Sharpe ratio, the better the returns relative to the risk taken.
Tracking Error: The active risk of the portfolio, which determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.
Alpha: The relationship between the performance of the Fund and its beta over a three-year period of time.
Standard deviation/Volatility: A statistical measure of the degree to which the Fund's returns have varied from its historical average. The higher the standard deviation, the wider the range of returns from its average and the greater the historical volatility. The standard deviation is calculated over a 36-month period based on Fund's monthly returns. The standard deviation shown is based on the Fund's Class A Shares or the oldest share class, where Class A Shares are not available.
R2: The percentage of a Fund's movements that result from movements in the index ranging from 0 to 100. A Fund with an R2 of 100 means that 100 percent of the Fund's movement can completely be explained by movements in the Fund's external index benchmark.
Risk measures are calculated based upon the Funds' broad-based index as stated in the prospectus.