Fund Description

Incepted in October 1998, the fund is managed by J.P. Morgan Fleming Asset Management (USA). The fund seeks to provide a balance of current income and growth of capital. The fund seeks a balance of current income and growth by using an active equity management style which focuses on equity securities that it considers most undervalued and an active fixed-income management style that focuses primarily on domestic fixed-income securities. The fund seeks growth of capital by normally investing 35% to 70% of its total assets in equity securities. The fund invests primarily in large and medium capitalization U.S. companies. By emphasizing undervalued equity securities, the fund seeks to produce returns that exceed those of the S&P 500. The fund invests at least 25% of its total assets in U.S. Government securities and other fixed-income securities, including mortgage-backed securities. The fund invests in fixed-income securities only if they are rated as investment grade by Moody's Investors Service, Inc., Standard & Poor's Corporation, Fitch Investor's Service Inc., or the equivalent by another national rating organization, or if they are unrated are deemed by the adviser to be of comparable quality. The fund may invest in floating rate securities, whose interest rate adjusts automatically whenever a specified interest rate changes, and in variable rate securities, whose interest rates are changed periodically. The fund's advisers blend growth and value-style equity investing to help minimize risk and they seek to maintain an intermediate-term average maturity for the fund's fixed-income portion. The fund distributes dividends and net capital gains, if any, quarterly.