The JPMorgan Investor Conservative Growth Fund (I Class Shares) underperformed the composite benchmark, the Lipper Mixed-Asset Target Allocation Conservative Funds Index, for the quarter ended September 30, 2025.

Developed market equities extended their gains, as investors looked past labor market weakness and concerns around long-term earnings growth expectations, and instead focused on loosening financial conditions and the Fed’s first rate cut since December 2024.

The Federal Open Market Committee reduced the federal funds rate by 25 basis points (bps), to 4.25-4.00%, amid moderating growth, elevated inflation, and rising employment risks, signaling a shift toward a more neutral policy stance. Chairman Powell described the cut as a “risk management” move and noted that the risk between inflation and employment was shifting, warranting adjustment to the Fed's policy stance.

The Eurozone Composite PMI rose to 51.2 from 51.0 in August, marking the fastest growth in business activity in 16 months and indicating continued expansion for the ninth consecutive month.

Emerging markets equities outperformed developed markets, with the MSCI Emerging Markets Index gaining of 12.2%, driven largely by Chinese stocks benefiting from the U.S.-China trade truce and AI optimism.

Fixed income markets were volatile over the period, as global political uncertainty and concerns around fiscal policy sustainability came into focus. At the same time, a weaker U.S. dollar provided a tailwind for emerging markets debt, while U.S. high-yield bonds and global investment-grade bonds posted solid gains as spreads tightened

JP Morgan Asset Management

JP Morgan