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JPMorgan
Asset
Allocation
Investing
Investor Funds Allocation
As of March 31, 2005
Allocation by Asset Class*
JPMorgan Investor
JPMorgan Investor
JPMorgan Investor
JPMorgan Investor
Conservative Growth
Fund
Balanced Fund
Growth & Income
Fund
Growth Fund
Objective
Seeks income and capital appreciation by investing primarily in a diversified group of mutual funds, which
invest primarily in equity and fixed
income securities.
Objective
Seeks high total return consistent
with the preservation of capital by
investing primarily in a diversified
group of mutual funds, which invest
primarily in equity and fixed income
securities.
Objective
Seeks long-term capital appreciation
and growth of income by investing
primarily in a diversified group of
mutual funds, which invest primarily
in equity securities.
Objective
Seeks long-term capital appreciation
by investing primarily in a diversified
group of mutual funds, which invest
primarily in equity securities.
33.0% Stocks
64.5% Fixed Income
2.6% Money Market
52.9% Stocks
45.7% Fixed Income
1.5% Money Market
73.0% Stocks
25.8% Fixed Income
1.2% Money Market
91.3% Stocks
5.9% Fixed Income
2.8% Money Market
Class A OICAX
Class C OCGCX
Class B OICGX
Class I ONCFX
Class A OGIAX
Class C OGBCX
Class B OGBBX
Class I OIBFX
Class A ONGIX
Class C ONECX
Class B ONEBX
Class I ONGFX
Class A ONGIX
Class C ONECX
Class B ONEBX
Class I ONGFX
Fixed Income Equity Money Market
Allocation by Underlying JPMorgan Mutual Funds*
as of March 31, 2005
JPMorgan Fund Name
Conservative Growth
Balanced
Growth & Income
Growth
2.6%
1.5%
1.2%
2.8%
Money Market
Liquid Assets Money Market Fund
Fixed Income
Core Bond Fund
11.0%
8.2%
4.2%
1.0%
Core Plus Bond Fund
11.9%
11.3%
7.5%
0.0%
Government Bond Fund
10.0%
9.3%
4.2%
0.0%
High Yield Bond Fund
7.7%
8.7%
8.8%
4.9%
Intermediate Bond Fund
8.9%
5.0%
1.0%
0.0%
10.0%
2.0%
0.0%
0.0%
4.9%
1.1%
0.0%
0.0%
Diversified Mid Cap Fund
2.0%
2.0%
4.0%
6.0%
Diversified Mid Cap Growth Fund
0.0%
0.0%
0.7%
2.5%
Diversified Mid Cap Value Fund
0.0%
0.0%
0.8%
1.5%
Equity Income Fund
5.0%
4.0%
0.0%
0.0%
International Equity Fund
2.0%
3.0%
4.9%
5.9%
International Equity Index Fund
2.0%
5.9%
6.0%
8.9%
Intrepid America Fund
3.5%
3.6%
5.1%
5.4%
Large Cap Growth Fund
3.8%
6.8%
11.8%
13.9%
Large Cap Value Fund
2.8%
6.9%
11.8%
14.7%
Market Expansion Index Fund
0.0%
3.9%
4.0%
4.0%
Multi-Cap Market Neutral Fund
7.0%
7.0%
7.0%
7.0%
Small Cap Growth Fund
0.0%
1.0%
2.0%
2.9%
Small Cap Value
0.0%
0.0%
2.0%
3.0%
U.S. Equity Fund
3.9%
7.8%
11.9%
14.6
U.S. Real Estate Fund
1.0%
1.0%
1.0%
1.0%
Short Duration Bond Fund
Ultra Short Term Bond Fund
Equity
*Due to rounding, values may or may not total 100%.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Asset
Allocation
Investing
JPMorgan
Investor Funds Update
As of Month March 31, 2005
Equity Market Overview
Bond Market Overview
Early 2005 brought a drop in the equity markets, caused by concerns over
aggressive Federal Reserve tightening in the face of decelerating economic
and profit growth. While January jobs figures were disappointing, results from
the corporate earnings season for the fourth quarter of 2004 were better than
expected. As anticipated, the Fed raised its target for the federal funds rate
by 25 basis points to 2.50% on February 1, and we expect the solid economy
and continued Fed tightening to eventually push longer-term rates moderately
higher. Looking forward, equities may encounter occasional difficulty as
investors fret over the implications of further interest rate increases. But, we
believe that the economy will move from recovery to non-inflationary
expansion, and expect stocks to be able to weather investors’ jitters.
Our bond market forecast for 2005 was for flat-to-low single-digit returns for
bonds in the face of continued Federal Reserve interest rate tightening.
February saw bond yields reaching new multi-month lows, with the yield on
10-year U.S. Treasury notes dropping to 3.98% before rebounding to 4.08%
after strong economic reports, and finally hovering near 4.25% near
month-end. The Fed, which had stepped up anti-inflation rhetoric, apparently
supporting both bond prices and the value of the dollar, raised the federal
funds target rate to 2.50% as anticipated on February 1. We believe the Fed
will keep tightening interest rates, for the time being, at the “measured pace” it
has followed during the past half year. This continued tightening may eventually
push longer term rates higher, as long as the economy remains solid. But,
absent bad news on inflation or a renewed steep drop-off in the value of the
U.S. dollar, a sharp rise in long-term interest rates does not appear imminent.
Contact JPMorgan Distribution Services at 1-800-480-4111 for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors
should carefully consider the investment objectives and risk as well as charges and expenses of the mutual fund before investing. The prospectus
contains this and other information about the mutual fund. Read the prospectus carefully before investing.
Opinions and estimates offered constitute our judgement and are subject to change without notice, as are statements of financial market trends, which are
based on current market conditions. We believe the information provided here is reliable but do not warrant its accuracy or completeness. This material is not
intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors.
This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for, accounting, legal or tax advice.
Please note that investments in foreign markets are subject to special currency, political and economic risk.
Markets overviews provided by JPMorgan Investment Advisors Inc., a registered investment advisor and an indirect subsidiary of JPMorgan Chase & Co.
JPMorgan Investment Advisors serve as investment advisor to JPMorgan, for which it received advisory fees. JPMorgan Mutual Funds are distributed by
JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various
services to the Funds.
FS-INVADVISOR (3/05)
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE