JPMorgan Global Allocation Fund - C - J.P. Morgan Asset Management

As of April 3, 2017, this fund's Select share class has been renamed to I. Please see the prospectus for more details.


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.

Fund Story   Morningstar article: JPMorgan Global Allocation Fund   Variable Insurance Trust Portfolio   

Key Points

  • 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-decile performance over the three- and five-year periods.1
  • Top-quartile performance 86% of the time over rolling 3-year period since inception.1


Source: J.P. Morgan Asset Management. Data as of 3/31/16. Shown for illustrative purposes only. Past performance is no guarantee of future results.

1World Allocation Category. Morningstar as of 3/31/17. I Shares. Ranked: 1-yr (130/480), 3-yrs. (29/396), 5-yrs. (32/335) and 10-yrs. period n/a.


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As of June 30, 2017

Month in review
  • The JPMorgan Global Allocation Fund (I Class Shares) returned 0.50% in June.
  • Equities continued to deliver strong returns, led by emerging markets and Japan. Emerging market equities broadly outperformed developed markets, returning 1.1% and -0.15% respectively. European equities saw a pullback in June.
  • Global bonds sold off in June, initially triggered by marginally hawkish comments from the President of the European Central Bank. This sentiment was echoed across the major central banks throughout the month.
  • The Federal Reserve (Fed) increased interest rates and indicated it expects one more increase if the economy performs as expected. In addition, the Fed detailed a plan for unwinding its $4.5 trillion balance sheet, which could begin before the end of 2017.
  • U.S. employment report data announced at the beginning of June disappointed. Despite the disappointment relative to expectations, the unemployment rate fell to its lowest level in 16 years.
  • News of high inventory levels and rising U.S. production drove oil prices to a seven-month low
Looking ahead
  • We maintain conviction in our pro-risk positioning in light of the pick-up in the economic growth outlook, which has also led us to more regionally diversify this exposure outside the U.S. We also maintain a more balanced currency exposure between the U.S. dollar and global currencies given our view that the growth and interest rate gap is closing between the U.S. and the rest of the world.
  • We continue to focus our risk in global equities, and continue to increase exposure to both developed international and emerging markets equities to further diversify equity risk. Within developed international and emerging markets equities, the Fund is near its highest allocations held since inception. Given the expectation for potential future 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. Within credit, we diversify our exposure within high yield, emerging markets debt, non-agency mortgages and investment-grade corporates. However, given our view that equities will outperform high yield, we have reduced high-yield exposure to focus our risk within equities and limit downside risk in the Fund. Additionally, we maintain exposure to government bonds as a way to manage risk within the Fund.

Fees and Minimums

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Fund Managers



1Please refer to the prospectus for additional information about cut-off times.

Total return assumes reinvestment of income.

The Fund's adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation and extraordinary expenses) exceed 1.03% for A Shares, 1.53% for C Shares, 0.78% for I Shares, 1.28% for R2 Shares and 1.03% for T Shares of the average daily net assets. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund's adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and expenses of the affiliated money market funds incurred by the Fund because of the Fund's investment in such money market funds. This waiver is in effect through 2/28/2018 for A Shares, 2/28/2018 for C Shares, 2/28/2018 for I Shares, 2/28/2018 for R2 Shares and 2/28/2018 for T Shares, at which time the adviser and/or its affiliates will determine whether to renew or revise it. The difference between net and gross fees 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 figures (for the fund and any index quoted) assume payment of fees and reinvestment of dividends (after the highest applicable foreign withholding tax) and distributions. Without fee waivers, fund returns would have been lower. Due to rounding, some values may not total 100%.

©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.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.Rankings do not take sales loads into account.
The following risks could cause the fund to lose money or perform more poorly than other investments. For more complete risk information, see the prospectus.

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.
Total return assumes reinvestment of income.

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.