An attentive team and reasonable resources are the foundation for this target-risk series—JP Morgan Investor Conservative Growth, JP Morgan Investor Balanced, JP Morgan Investor Growth & Income, and JP Morgan Growth—which should prove easy to hold but unlikely outperform long-term, driving an overall Morningstar Analyst Rating of Neutral.
Ove Fladberg leads this series as well as the nine-person Asset Management Solutions team from Columbus Ohio. Four portfolio managers with an average of more than a decade on the fund work with the rest of the team in clearly delineated roles. Together they assemble sensible collections of JP Morgan mutual funds into four target-risk portfolios with prudent risk/reward profiles.
As is common for target-risk portfolios, the process here follows three steps: long-term allocation, intermediate-term adjustments, and manager selection. Here those stages are straightforward and disciplined. The Columbus team uses information from the firm’s top experts across the globe but adds their own work to emphasize diversification, balance, and sound risk/reward tradeoffs.
The portfolios contain roughly 25 JP Morgan funds each. Fladberg’s emphasis on all-in-one portfolios with comfortable risk/reward ratios comes through clearly. Yet they’re not simply timid. Within generally cautious strategic asset allocation plans there are overweights to areas known more for adding return than avoiding risk—such as small-caps and high yield bonds. On balance, these positioning decisions generated a fairly typical return profile relative to peers over the trailing decade.
Over the course of Fladberg’s portfolio management tenure from Nov. 1, 2010, through July 31, 2022, there’s a mixed performance record. Conservative Growth lagged the Morningstar Moderately Conservative Target Risk Index but led the allocation 30% to 50% equity category average. Balanced was in line with both the Morningstar Moderate Target Risk Index and the typical allocation 50% to 70% equity peer, but the more equity-heavy Growth & Income handily topped the same index and peer average. Growth outgained both its Morningstar Target Risk Index and the average allocation 85%+ equity category peer by more than 100 basis points annualized.