Strong security selection and an improved allocation framework for Fidelity Balanced FBALX led to a Process Pillar rating upgrade to Above Average and boosted the fund’s K shares to a Morningstar Medalist Rating of Bronze from Neutral.
Since taking over in 2022, lead manager Christopher Lee has integrated an allocation framework that includes more of the firm’s strong research. Stock/bond splits depend on Lee’s market views, but he has thoughtfully incorporated macroeconomic and quantitative research to inform his decisions. While the fund has historically overweighted equities, Lee has dialed back this tilt. Still, the fund’s 64% equity stake in July 2025 remained higher than most moderate-allocation Morningstar Category peers’. The portfolio’s US equity focus has helped relative performance over the years. Sector weights are tied to the S&P 500, which allows the stock selection of the fund’s sector managers to drive returns.
The portfolio’s fixed-income sleeve comprises two internal funds: Fidelity Investment Grade Bond and Fidelity High Income. The fund avoids interest rate calls, typically keeping duration in line with the Bloomberg US Aggregate Bond Index. The portfolio has historically underweighted government debt and has typically employed a barbell-like approach with credit quality, overweighting AAA and BBB rated debt. The increased credit risk and consistent equity overweight can make the fund more vulnerable during market stress, but it has helped it rebound well during recoveries.
Key Morningstar Metrics for Fidelity Balanced
Morningstar Medalist Rating: Bronze
Process Pillar: Above Average
People Pillar: Average
Parent Pillar: Above Average
A Proven Approach
Increased conviction in the inputs supporting JPMorgan Core Plus Bond ETF’s JCPB portfolio decisions drove a Process Pillar upgrade to High and elevated its Morningstar Medalist Rating to Gold from Silver.
Three key managers, Kay Herr, Andrew Norelli, and Priya Misra, take broad macro views from JPMorgan’s quarterly investment meeting and use weekly sector meetings to drive relative value and tactical portfolio positioning. They consider fundamental, quantitative, and technical factors to inform the portfolio’s risk, duration, and curve positioning, as well as sector allocation. That said, its duration bets are modest.
Sector-focused managers select securities from the bottom up in distinct portfolio sleeves and are measured against their respective internal sector benchmarks. They have some flexibility to go off-script to take advantage of relative value opportunities and express their market views.
Key Morningstar Metrics for JPMorgan Core Plus Bond ETF
Morningstar Medalist Rating: Gold
Process Pillar: High
People Pillar: Above Average
Parent Pillar: Above Average
No Longer a Standout
Decreased conviction in BlackRock Mid-Cap Growth Equity’s BMGAX approach led to a downgrade to its Process Pillar to Average and dropped its Morningstar Medalist Rating to Neutral from Bronze.
This strategy employs a bottom-up style that pays some attention to valuation and risk, but it does not stand out. The process’ pillars of valuation, quality, and growth aren’t as prevalent in the portfolio as they once were. Recently, quality has decreased relative to the benchmark despite the substantial increase of valuation ratios and momentum exposure since early 2024. Performance since then has lagged most peers.
Key Morningstar Metrics for BlackRock Mid-Cap Growth Equity K
Morningstar Medalist Rating: Neutral
Process Pillar: Average
People Pillar: Average
Parent Pillar: Above Average
