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


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 87% of the time over rolling 3-year period since inception.1


Source: J.P. Morgan Asset Management. Data as of 6/30/17. Shown for illustrative purposes only. Past performance is no guarantee of future results.

1World Allocation Category. Morningstar as of 6/30/17. I Shares. Ranked: 1-yr (66/467), 3-yrs. (15/395), 5-yrs. (27/337) and 10-yrs. period n/a.


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As of September 30, 2017

Month in review
  • The JPMorgan Global Allocation Fund (I Class Shares) returned 1.10% in September versus the composite benchmark returns of 0.99%.
  • The Federal Reserve suggested that it would probably raise interest rates once more in 2017 and that it would begin reducing its $4.5 trillion portfolio of bonds in October. The central bank had been signaling for months that it would begin to sell many of the bonds it purchased as a way to keep rates low after the 2008 financial crisis.
  • Economic data in September and throughout the third quarter overall, pointed to a solid global growth environment. One example is that business sentiment surveys around the globe remain elevated. U.S. growth has also remained firm, underpinned by continued labor market progress.
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 diversify this exposure more regionally 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 maintain increased exposure to both developed international and emerging markets equities to further diversify equity risk. Within developed international and emerging markets equities, the Fund remains near its highest allocations held since inception. Within alternatives, we hold the highest allocation since Fund inception, allocating to two Long/Short Equity managers as a way to increase equity exposure with less volatility. 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 emphasize our credit positions relative to global government bonds. Within credit, we maintain our diversified exposure by allocating across 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 our exposure to focus our risk within equities and limit downside risk in the Fund. Additionally, we maintain our 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 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 , 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 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.