LIPPER TO POWER TARGET DATE NAVIGATOR TOOL

Feb 23, 2009

  • J.P. Morgan Funds selects Lipper to power its Target Date Navigator tool.

New York, February 23, 2009 – J.P. Morgan Funds today announced that it has selected Lipper, a Thomson Reuters company, to provide the data that powers its target date evaluation tool, Target Date NavigatorSM. Target Date Navigator is a patent-pending evaluation process that helps advisors and their plan sponsor clients identify target date funds most closely aligned to a plan's goals and participants' savings behavior. Previously, the data for these reports had been compiled by J.P. Morgan.

"With the addition of proprietary Lipper data to the Target Date Navigator tool, advisors will now have access to one of the industry's leading frameworks for target date analysis along with a rich set of unbiased data provided by one of the market's most trusted sources,"  said David Musto, head of J.P. Morgan's Retail Investment Only Retirement business.  "Lipper will be able to provide more detailed analysis on each of the publicly available target date fund series in reports that can only be accessed through J.P. Morgan."

"We are very pleased that J.P. Morgan, a widely-recognized leader in financial services, has selected Lipper to power its innovative retirement tools," said Eric Almquist, chief operating officer at Lipper. "This affirms Lipper's flexibility and commitment to meet the specialized needs of its clients. We look forward to a long and mutually beneficial partnership with J.P. Morgan to lead the data and analysis needs of their retirement specialists."

Designed and created by J.P. Morgan's retirement and investment professionals, Target Date Navigator is the first tool to categorize funds according to their investment composition and glide path strategy, creating a map of the target date mutual fund universe. Since not all target date funds are created equal and generally differ according to their investment time horizons and level of asset class diversification, this tool fills a necessary void in the marketplace and has been in great demand in the advisor community.

Target Date Navigator assists advisors and their plan sponsor clients to ensure fiduciary responsibilities are being addressed and that plans are compliant with qualified default investment alternative ("QDIA") guidelines.  Since target date funds are becoming the most popular option chosen for QDIAs, J.P. Morgan believes that more can be done to help advisors and their plan sponsor clients to objectively evaluate the differences between funds.

J.P. Morgan's Target Date Navigator involves the following three step process:

  • Assessing the plan's desired level of equity exposure for participants at or near retirement,
  • Determining the plan's philosophy regarding asset class diversification,
  • Comparing and selecting the most appropriate target date funds using J.P. Morgan's Target Date CompassSM, now powered by Lipper.  Lipper, using proprietary data derived from public sources and directly from fund companies, plots each mutual fund company's target date suite on the Target Date Compass.  A target date suite's location on the Target Date Compass is based upon composition (asset class diversity) and glidepath strategy (equity exposure at retirement).

"The Navigator and Compass do not favor any specific type of target date strategy. What they do is distinguish the differences between various funds and helps advisors and plan sponsors select a good fit for their plan sponsor clients and participants," added Mr. Musto.

J.P. Morgan Funds is the mutual fund business of JPMorgan Chase & Co., a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries (as of 12/31/08) The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity.  A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands.

The JPMorgan Target Date NavigatorSM ("Navigator") should only be used during private meetings with plan sponsors. The Navigator should not be used as an advertisement or sales literature. It is not intended for use with the general public or for distribution beyond private meetings. The information within has been obtained from sources deemed to be reliable. There is no guarantee that any opinions expressed in this material will be realized. The content within the Navigator is for informational purposes only and should not be construed as investment advice. The Navigator may not be reproduced in whole or in part in any manner.

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