JPMorgan Investor Balanced Fund - C - J.P. Morgan Asset Management
CLOSE

Designed To

Designed to deliver high total return associated with preservation of capital through an actively managed diversified portfolio.

Approach

  • Focuses on achieving a long-term risk/return profile similar to a 50% fixed income/50% equity portfolio
  • Managed by experienced Multi-Asset Solutions Columbus team with full access to insights from J.P. Morgan's asset class specialists
  • Fund of funds approach provides access to broad mix of asset classes and regions

Performance

Performance widget loading ...

Commentary

As of September 30, 2017

Quarter in review
  • The JPMorgan Investor Balanced Fund (I Class Shares) outperformed its primary benchmark, the Bloomberg Barclays U.S. Intermediate Aggregate Index, for the quarter ended September 30, 2017, due to the strong performance of global equity portfolios. The Systematic Alpha Fund was the primary laggard during the quarter. The following JPMorgan Funds are highlighted:
  • Core fixed income funds delivered reasonable performance as the Core Bond Fund modestly lagged its index while the Core Plus Bond Fund bested its benchmark quite handily. Returns from the asset class were solid, but lagged the performance delivered by global equities.
  • Global equity performance remained stellar in the third quarter. Exposure to emerging market funds and developed markets international proved beneficial, highlighted by the Emerging Economies Fund, which delivered exceptional performance. The rise in global economic prospects has driven positive earnings estimate revisions across much of the globe. Exposure to growth funds (Dynamic Growth and Intrepid Growth) boosted performance in the quarter, while value-based methodologies showed mixed results as manager performance did not provide enough alpha to offset weak asset class returns.
  • Market-neutral funds showed mixed performance in the quarter. While the Multi-Cap Market Neutral Fund provided solid results, the Systematic Alpha Fund was a notable laggard.
Looking ahead
  • The Fund primarily focuses on opportunities expected to evolve over intermediate (three-to-five year) and longer-term (10- to-15 year) horizons. Here are our expectations for the next several years:
  • The recent slow-growth environment may be giving way to a modestly more favorable economic backdrop as expectations have risen for support from fiscal stimulus and tax reform. While this may lead to a temporary rise in growth, inflation and interest rates, the demographic backdrop and elevated debt levels reflected by the global economy are likely to restrain growth unless productivity improves markedly.
  • Interest rate normalization could be underway and investment-grade fixed income returns should also begin to look more favorable as time progresses. We would expect bond allocations to increase should rates rise more meaningfully. Within credit, we retain an allocation to leveraged loans, which offer higher returns than core fixed income and a lower risk profile than high yield.
  • International equity markets offer longer-term opportunity but also pose high volatility associated with both the underlying stocks and higher exposures to foreign currencies. The portfolio maintains a modest overweight to risk assets with an emphasis on developed markets equity.

Fees and Minimums

Fees widget loading ...

Portfolio

Portfolio widget loading ...

Management

Fund Managers

Documents

Disclaimer

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 0.52% for A Shares, 1.10% for C Shares, 0.27% for I Shares, 0.90% for R2 Shares, 0.65% for R3 Shares, 0.40% for R4 Shares, 0.25% for R5 Shares, 0.15% for R6 Shares and 0.52% 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 10/31/2018 for A Shares, 10/31/2018 for C Shares, 10/31/2018 for I Shares, 10/31/2018 for R2 Shares, 10/31/2018 for R3 Shares, 10/31/2018 for R4 Shares, 10/31/2018 for R5 Shares, 10/31/2018 for R6 Shares and 10/31/2018 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. The Bloomberg Barclays U.S. Intermediate Aggregate Index is an unmanaged index of U.S. government, mortgage, corporate and asset-backed securities with maturities of one to 10 years. The Russell 3000 Index is an unmanaged index measuring the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Investor Balanced Composite Benchmark is comprised of unmanaged indices that correspond to the Fund's model allocation and consists of the Bloomberg Barclays U.S. Intermediate Aggregate Index (50%) and the Russell 3000 Index (50%). The performance of the Lipper Mixed-Asset Target Allocation Moderate Funds Index includes the deduction of expenses associated with mutual funds, 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. 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. Asset allocation does not guarantee investment returns and does not eliminate the risk of loss. There may be additional fees or expenses associated with investing in a Fund of Funds strategy. Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss. Commodity investing is subject to greater volatility than investments in traditional securities, particularly if leveraged. Their value may be affected by overall market movements, index volatility, interest rate changes, or factors affecting a particular industry or commodity. Use of leveraged derivatives may increase return but also increase the possibility for greater loss. Securities rated below investment grade are considered "high-yield," "non-investment grade," "below investment-grade," or "junk bonds." They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody's Investors Service. Although they can provide higher yields than higher rated securities, they can carry greater risk. 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.