FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION

INVESTMENT INSIGHTS

Building better portfolios

2Q 2017 U.S. high yield, 6.3%
Emerging markets debt, 2.3%

U.S. large cap

U.S. large cap, 24.8% U.S. mid/small cap
U.S. REITs
Developed markets equity

is crucial to helping clients achieve their long-term goals.

U.S. investment grade, 24.5% Emerging markets equity
45-35-20
MAKING PRUDENT ASSET ALLOC ATION DECISI ONS U.S. mid/small cap, 5.8%
Equity alternatives
Fixed income alternatives
U.S. investment grade

Our model portfolios framework is designed to help you build better portfolios in any market environment. U.S. REITs, 2.3%
U.S. high yield
Emerging markets debt
Cash

Developed markets equity, TIPS

11.8% Core diversiers
Fixed income alternatives, 7.0%
Equity alternatives, 13.0%

Emerging markets equity, 2.5%

1 Asset allocation views 2 Model portfolios 3 J.P. Morgan Funds in practice

These are the firms views on asset
classes across various regions, which
are revised quarterly and are also
the source of positioning within
the J.P. Morgan model portfolios.
Asset allocation views are translated Explore two different approaches
into a series of model portfolios to of how J.P. Morgan funds might
help investors make thoughtful, be used in the model portfolios.
well-informed decisions in building
and managing portfolios.

THE EXPERIENCE AND RESOURCES YOU NEED

J.P. Morgans award-winning* Multi-Asset Solutions team has the experience and track record to help clients achieve
consistent results in all market environments.

$199bn 45+yrs 70+

GLOBAL ASSETS INVESTMENT INVESTMENT
37
CFA CHARTER
17 5 1
MBAS PHDS OBJECTIVE:
UNDER MANAGEMENT TRACK RECORD PROFESSIONALS HOLDERS SEEKS TO HELP
CLIENTS MEET THEIR
INVESTMENT GOALS

*Morningstars 2014 Fund Allocation Manager of the Year for the JPMorgan SmartRetirement Target-date Series (Institutional Shares).
As of December 31, 2016.
 INVESTMENT INSIGHTS
ASSET ALLOCATION VIEWS
These asset allocation views are the result of a rigorous and disciplined process that integrates our qualitative insights and
quantitative analysis. The research and investor teams examine, debate and challenge the views at the quarterly Strategy Summit
and meet regularly to ensure ongoing dialogue.
GLOBAL VIEWS
Economic activity has strengthened and broadened in recent months,
with real growth shifting upward and inflation beginning to normalize
after a weak spell. Global weak links of the past two years
manufacturing, business investment, and some major emerging
economies are showing improvement
Against that backdrop, we maintain a pro-risk tilt in asset allocation,
favoring equities and to a lesser extent corporate credit over
government bonds
U.S. EQUITIES
A combination of growth and defensiveness
We maintain overweight exposure to the U.S. within our equity allocation
We believe recession risk in the U.S. remains fairly low and expect the
current economic expansion to continue through 2017
Corporate profits will likely improve significantly this year, as previous
drags from the oil price collapse and dollar appreciation fade
With small-cap valuations having become less attractive, we have evened
out our exposure among large-cap and small-cap stocks. Given the
strength of the equity rally in recent months, we like the defensive
nature of U.S. large-cap stocks in the short run
DEVELOPED INTERNATIONAL & EMERGING MARKET EQUITIES
Broadening exposure to growth
Global growth has improved, with upside surprises recently in Europe
and Japan, and as a result we seek to hold broad and balanced exposure
across equity markets
Japan represents our most favored equity market, with stocks there
likely to benefit from yen weakness triggered by rising global bond yields
Within Europe, we prefer euro area equities to UK stocks, with the euro
area economy having shown resilience to political uncertainty and the UK
still facing probable deceleration as the country moves toward Brexit
We remain overweight emerging market equities on relatively attractive
valuations and as a play on better global growth
2 B U IL D IN G B ET T ER P O RTF O L IO S
While sentiment in the U.S. has surged since late 2016, actual growth
data have surprised more favorably elsewhere, especially in Europe and
Japan. Although emerging economies also have picked up, the pace of
their acceleration has disappointed at the margin
Monetary policy likely has gone through an inflection point, with no
further easing expected from any major developed economy central
bank, but we expect tightening to occur gradually
FIXED INCOME
Caution on duration but still exposed to credit
Although bond yields have risen in recent months, we see further
increases as inflation normalizes and the Federal Reserve gradually
raises policy interest rates
The correlation between stocks and bonds remains negative, but less
so than before as monetary policy takes a hawkish turn. Less negative
correlations diminish the appeal of duration as a hedge against riskier
assets
We continue to prefer credit to government bonds, but corporate bond
spreads have narrowed sharply in recent months, encouraging a shift
toward equities to capture further upside for risky assets
Within credit, we remain overweight U.S. high yield but have lowered our
return expectations given the rally in that market, and we have trimmed
our underweight to emerging markets debt
LIQUID ALTERNATIVES
Managing duration and hedging equity exposure
We think credit-oriented strategies with flexible approaches to duration
exposure can provide a hedge to the natural exposures embedded within the
traditional Fixed Income segment of the portfolio.
Equity alternatives are helpful to mitigate risk, particularly with our
constructive view on global growth and current emphasis on risk assets
 INVESTMENT INSIGHTS

Active allocation views

These asset class views apply to an intermediate-term horizon (that is, 12 to 18 months). Up/down arrows indicate a positive ( )
or negative ( ) change in view since the prior quarterly Strategy Summit. This summary of our individual asset class views shows absolute
direction and strength of conviction but is independent of portfolio construction considerations.

Max negative Neutral Max positive

Asset class Opportunity set Change Negative Neutral Positive Rationale
Equities/bonds Growth broadening out globally increases confidence that stocks will lead bonds

Duration Reflationary trends picking up in most regions lead to steady rise in global yields

MAIN Credit Credit now expensive, but remains likely to outperform government bonds
ASSET
CLASSES Commodities Supported by better growth driving up oil demand; bulks, though, look stretched

Real estate Real estate fairly valued on most metrics; late in cycle for real estate now

Cash Negative and near-negative rates a disincentive to holding cash

U.S. large cap Rich valuations offset by good all-in yield and positive earnings momentum

U.S. small cap Valuations stretched vs. U.S. large cap, but cyclical upturn lends some support

Europe ex-UK Attractively valued, but near-term political risks may constrain upside for now
EQUITIES

UK Currency support fully priced; political and economic risks yet to be discounted

Japan Improving domestic picture, broader global growth and soft yen all provide support

Asia Pacific ex-Japan Becoming attractive on valuations and helped further by steady outlook for China

Emerging markets Risk of sharp dollar rally is fading, and growth is broadening out across EM

Direct real estate Late in cycle for real estate; valuation support fading at the margin
ESTATE
REAL

U.S. REITs Vulnerable to higher yields; valuations quite fair after early 2017 rally
REGIONAL PREFERENCE BY ASSET CLASS

U.S. Treasuries Fed hikes and better growth support case for yields moving steadily higher over 2017

U.S. TIPS Less compelling vs. nominals than they were, but remain a good inflation hedge
SOVEREIGN FIXED INCOME

Euro, core (Bund) ECB tapering in 2018 plus recovery in CPI will start to be priced into core EU bonds

Euro, periphery (BTP) Vulnerable during French elections, but now offering attractive spread to Bunds

UK Gilts UK economic data likely to slow as CPI rises and Article 50 triggered

Japanese JGBs Yields pegged to near zero by BoJ, but prefer to play Japan via currency or equity

Canadian govt bonds Expensive on real yield terms; economic and inflation data beginning to rise

Australian govt bonds Attractive yield and carry keep support for AUD bonds

Investment grade Spreads now rather tight, but fundamentals in IG are supportive

U.S. high yield Expensive on most valuation measures, but carry outlook remains supportive
CREDIT

European high yield ECB action keeps bid in place for EU IG, which continues to spill over into HY

Emerging markets debt EM balance sheets improving; attractive as a diversifier to other credit holdings

USD Fed gives modest near-term support for USD, but unlikely to see a major leg higher

EUR ECB deposit rate unlikely to be cut further; trade surplus puts a floor under euro
FX

GBP Fundamental outlook poor; further pressure possible as Brexit realities bite

JPY Higher U.S. yields while JGBs are pegged should translate to yen weakness

Source: J.P. Morgan Asset Management Multi-Asset Solutions; data as of March 8, 2017.
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options
and asset classes may help to reduce overall volatility.

J.P. MORGAN ASSE T MA N A G E ME N T 3

 INVESTMENT INSIGHTS

MODEL PORTFOLIOS
J.P. Morgans strategic portfolio is based on a 45-35-20 equity-fixed income-liquid alternatives mix and is updated quarterly based
on the output from our Strategy Summit.

4 5 - 3 5 - 20 MODE L (as of March 2017)

3.3%
6.3%
22.5%

21.5%

45-35-20 6.5%

2.3%

7.0%
12.3%

13.0%
5.5%

EQUITY FIXED LIQUID

INCOME ALTERNATIVES

TACTICAL SHIFTS (tables below): Up/down arrows below indicate an overweight ( ) or underweight ( ) from our strategic model, which is updated annually.

Equity Fixed income/Inflation Liquid alternatives*

U.S. large cap +1.0% U.S. investment grade -5.0% Equity alternatives +3.0%
U.S. mid/small cap +1.0% U.S. high yield +1.0% Fixed income alternatives +2.0%
U.S. REITs Emerging markets debt Core diversifiers -5.0%
Developed markets equity +1.0% Cash
Emerging markets equity +1.0% TIPS

*Equity alternatives: Actively manage beta, with equity alternatives that help buffer against market fluctuations in the long run. Fixed income alternatives: Reduce interest rate
risk with fixed income alternatives while broadening investment options. Core diversifiers increase diversification by investing in currencies, commodities, stocks and bonds.

4 B UIL D IN G BET T ER P ORTF O L IO S

 INVESTMENT INSIGHTS

EXAMPLES BY RISK PROFILE

CONSERVATIVE AGGRESSIVE

EQUITY-FI-ALTS
20-70-10 35-50-15 40-40-20 45-35-20 60-20-20

ALLOCATIONS AND SHIFTS Strategic Tactical shift Strategic Tactical shift Strategic Tactical shift Strategic Tactical shift Strategic Tactical shift

Equity 20.0% 35.0% 40.0% 45.0% 60.0%

U.S. large cap 9.5% +0.5% 16.8% +0.5% 19.3% +1.0% 21.5% +1.0% 28.8% +1.0%

U.S. large cap growth 4.8% +0.25% 8.4% +0.25% 9.6% +0.5% 10.8% +0.5% 14.4% +0.5%

U.S. large cap value 4.8% +0.25% 8.4% +0.25% 9.6% +0.5% 10.8% +0.5% 14.4% +0.5%

U.S. mid/small cap 2.5% +0.5% 4.3% +0.5% 4.8% +1.0% 5.5% +1.0% 7.3% +1.0%

U.S. REITs 1.0% 1.8% 2.0% 2.3% 3.0%

Developed markets equity 5.0% +0.5% 8.8% +0.5% 10.0% +1.0% 11.3% +1.0% 15.0% +1.0%

Emerging markets equity 2.0% +0.5% 3.5% +0.5% 4.0% +1.0% 4.5% +1.0% 6.0% +1.0%

Fixed income/Inflation 70.0% 50.0% 40.0% 35.0% 20.0%

U.S. investment grade 55.0% -2.5% 38.5% -2.5% 30.5% -5.0% 26.5% -5.0% 12.5% -5.0%

U.S. high yield 9.0% +0.5% 7.0% +0.5% 5.8% +1.0% 5.3% +1.0% 4.5% +1.0%

Emerging markets debt 6.0% 4.5% 3.8% 3.3% 3.0%

Cash 0.0% 0.0% 0.0% 0.0% 0.0%
TIPS 0.0% 0.0% 0.0% 0.0% 0.0%
Liquid alternatives 10.0% 15.0% 20.0% 20.0% 20.0%
Equity alternatives 0.0% 0.0% +2.0% 7.5% +2.5% 10.0% +3.0% 15.0% +4.0%

Fixed income alternatives 10.0% 10.0% +3.0% 7.5% +2.5% 5.0% +2.0% 0.0% +1.0%

Core diversifiers 0.0% 5.0% -5.0% 5.0% -5.0% 5.0% -5.0% 5.0% -5.0%

Source: J.P. Morgan Asset Management Multi-Asset Solutions; assessments are made using data and information up to March 8, 2017. For illustrative purposes only.
Strategic allocations shown in the left column for each model portfolio do not include this quarters tactical shifts. The current allocation for a given model would equal the sum

of the strategic allocation plus the tactical shift.

EQUITY-FI-ALTS ALLOCATIONS 20-70-10 35-50-15 40-40-20 45-35-20 60-20-20

HISTORICAL RESULTS / PORTFOLIO STATISTICS (as of December 31, 2016*)
Historical results
3-year returns 3.9% 4.0% 3.8% 3.8% 3.8%
5-year returns 4.9% 6.1% 6.7% 7.2% 8.5%
10-year returns 5.2% 5.2% 4.8% 4.6% 4.2%
Portfolio statistics
10-year volatility1 5.7% 7.7% 9.2% 10.1% 12.8%
Max historical drawdown 2
-15.1% -24.6% -31.0% -34.5% -43.7%
Sharpe ratio 3
0.80 0.60 0.47 0.42 0.33

*Source: Russell, Morgan Stanley, MSCI, Barclays Capital, Merrill Lynch, J.P. Morgan Asset Management Multi-Asset Solutions. U.S. large cap: Russell 1000 Growth Index & Russell
1000 Value Index; U.S. mid/small cap: Russell 2500 Index; U.S. REITs: Morgan Stanley REIT Index; developed markets equity: MSCI EAFE Index; emerging markets equity: MSCI
Emerging Markets IndexSM; U.S. investment grade: Bloomberg Barclays U.S. Aggregate Index; U.S. high yield: Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond
Index; emerging markets debt: J.P. Morgan EMBI Global Index; equity alternatives: HFRX Equity Hedge Index; fixed income alternatives: Bloomberg Barclays U.S. Aggregate Index; core
diversifiers: HFRX Global Hedge Fund Index.
The model performance shown is hypothetical and for illustrative purposes only and does not represent the performance of a specific investment product. The performance
presented does not reflect the deduction of expenses associated with a fund, such as investment management fees and fund expenses, including sales charges if applicable.
Portfolio results and statistics are calculated based on the current asset allocation weightings as shown on page 5 and assume a monthly rebalancing to these weights. The
inception date is December 31, 2004. Performance for periods longer than a year has been annualized using a geometric mean. Due to rounding, values may not total 100%.
This information should not be relied upon as investment advice, research or a recommendation by J.P. Morgan regarding the funds or the use of the model portfolios.

J.P. MORGAN ASSE T MA N A G E ME N T 5

 INVESTMENT INSIGHTS

TWO EXAMPLES INCORPORATING J.P. MORGAN FUNDS INTO THE 45-35-20 MODEL PORTFOLIO
In this section, the illustrations show how an investor might put the 45-35-20 model portfolio allocations into practice using J.P. Morgan
Funds. The allocations to J.P. Morgan Funds listed below are not determined by the Multi-Asset Solutions team. The two approaches
presented below assume a clients desire to limit the number of funds used and to include flexible funds with few constraints to take
advantage of market opportunities.

TRADITIONAL APPROACH USING FLEXIBLE FUNDS

U.S. high yield

U.S. large cap
Emerging markets debt
U.S. mid/small cap
Global Bond Opportunities Fund 9.5% 15.6% U.S. REITs
Growth Advantage Fund
Value Advantage Fund
U.S. investment grade 21.5%
Core Plus Bond Fund 15.6%

7.0% 12.3%
Fixed income alternatives
Strategic Income Opportunities Fund 13.0% 5.5% Developed markets equity

Equity alternatives Emerging markets equity

INCORPORATING A MULTI-ASSET FUND AS THE CORE

U.S. high yield

U.S. large cap
Emerging markets debt
4.8% U.S. mid/small cap
Global Bond Opportunities Fund 7.8% U.S. REITs
Growth Advantage Fund
Value Advantage Fund
U.S. investment grade 10.8% 50% Global 7.8%
Core Plus Bond Fund
Allocation Fund

3.5%
Fixed income alternatives 6.1%
Strategic Income Opportunities Fund 6.5% 2.8% Developed markets equity

Equity alternatives Emerging markets equity

The allocations to J.P. Morgan Funds listed are not determined by the Multi-Asset Solutions team.
This information should not be relied upon as investment advice, research or a recommendation by J.P. Morgan regarding (i) the Funds, (ii) the use or suitability of the J.P. Morgan
Model Portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision.

6 B UIL D IN G BET T ER P ORTF O L IO S

 INVESTMENT INSIGHTS

Growth Advantage Fund A VHIAX | SELECT JGASX
Designed to provide long-term capital growth through a portfolio
of high-growth U.S. stocks across all market capitalizations.
Invests in a portfolio of large, mid and small cap companies
with above-average growth prospects
Looks for companies with leading competitive positions,
durable business models and management that can achieve
sustained growth
Seeks to identify stocks with a history of achieving, or the
potential to achieve, above-average growth
Strategic Income Opportunities Fund A JSOAX | SELECT JSOSX
Designed to deliver high total returns by investing in a broad
range of fixed income securities.
Allocates assets among a broad range of fixed income
securities, including cash and short-term investments in an
attempt to deliver positive returns over time
Uses an opportunistic, go-anywhere approach that includes
long/short strategies
Dynamically shifts allocations across traditional and alternative
fixed income while managing duration and actively hedging

Value Advantage Fund A JVAAX | SELECT JVASX
Designed to provide long-term total return through a portfolio
of attractively valued U.S. equity securities across all market
capitalizations.
Invests in a portfolio of large, mid and small cap companies
with attractive fundamentals and valuations
Employs bottom-up stock selection based on company
fundamentals and proprietary fundamental analysis
Seeks to identify companies that appear to be undervalued
and have the potential for capital appreciation
Core Plus Bond Fund A ONIAX | SELECT HLIPX
Designed to deliver high level of current income from a portfolio
of investment grade and non-investment grade securities.
Invests primarily in investment-grade bonds, with the flexibility
to tactically add up to 35% in high-yield and foreign debt
Combines bottom-up security selection with dynamic
sector allocation
Uses macro analysis to guide yield curve positioning, duration
and portfolio risk

Global Allocation Fund A GAOAX | SELECT GAOSX
Designed to maximize long-term total return, pursuing
opportunities worldwide.
Focuses on generating total return using a global,
flexible approach
Managed by experienced Multi-Asset Solutions team
leveraging insights from J.P. Morgans asset class specialists
Pursues highest conviction ideas for total return to invest
across global equities, fixed income and alternatives while
also managing risk
Global Bond Opportunities Fund A GBOAX | SELECT GBOSX
Designed to deliver total return from a global, diversified
bond portfolio.
Invests in bond and currencies sectors across developed and
emerging markets without benchmark constraints
Combines insights from over 200 sector specialists with
global perspectives to develop high-conviction ideas while
actively managing risk
Dynamically shifts sector and duration exposure in response
to changing market conditions

RISK SUMMARY: The following risks could cause a fund to lose money or perform more poorly than other investments. For more complete risk information, see the funds prospectus.

JPMorgan Growth Advantage Fund: Small-capitalization investments typically carry more risk than investments in well-established blue-chip companies since smaller companies generally have
a higher risk of failure. Historically, smaller companies stock has experienced a greater degree of market volatility than the average stock. JPMorgan Value Advantage Fund: The prices of equity
securities are sensitive to a wide range of factors, from economic to company-specific news, and can fluctuate rapidly and unpredictably, causing an investment to decrease in value. JPMorgan Core
Plus Bond Fund: Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. JPMorgan Strategic
Income Opportunities Fund: Securities rated below investment grade are considered high yield, non-investment grade, below investment grade or junk bonds. They generally are rated in the
fifth or lower rating categories of Standard & Poors and Moodys Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk.
International investing bears greater risk due to social, economic, regulatory and political instability in countries in emerging markets. This makes emerging market securities more volatile and less
liquid than developed market securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns. JPMorgan Global Bond Opportunities
Fund: Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. International investing bears
greater risk due to social, economic, regulatory and political instability in countries in emerging markets. This makes emerging market securities more volatile and less liquid than developed market
securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns. JPMorgan Global Allocation Fund: International investing involves a
greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and differences in accounting and taxation policies
outside the U.S. can affect returns. Asset allocation does not guarantee investment returns and does not eliminate the risk of loss.

J.P. MORGAN ASSE T MA N A G E ME N T 7

 FOR INSTITUTIONAL/WHOLESALE/PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION

INVESTMENT INSIGHTS

NOT FOR RETAIL DISTRIBUTION: This communication has been prepared exclusively for institutional/wholesale/professional clients and qualified investors only as defined by local
laws and regulations.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment
product, strategy, plan feature or other purpose. Any examples used are generic, hypothetical and for illustration purposes only. Prior to making any investment or financial decisions,
an investor should seek individualized advice from personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an
investors own situation.
Investing in foreign countries involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies in foreign
countries can raise or lower returns. Also, some markets may not be as politically and economically stable. The risks associated with foreign securities may be increased in countries with less
developed markets. These countries may have relatively unstable governments and less established market economies than developed countries. These countries may face greater social,
economic, regulatory and political uncertainties. These risks make securities from less developed countries more volatile and less liquid than securities in more developed countries..
The views contained herein are not to be taken as an advice or a recommendation to buy or sell any investment in any jurisdiction, nor is it a commitment from J.P. Morgan Asset
Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any forecasts, figures, opinions or investment techniques and strategies set out are for
information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered
to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. This material does not contain sufficient
information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make
an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned
herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that
investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back
the full amount invested. Both past performance and yield may not be a reliable guide to future performance.
Futures contracts, swaps, options and derivatives often create leverage, thereby causing the Fund to be more volatile than it would be if it had not used derivatives.
All indices are unmanaged and an individual cannot invest directly in an index. Index returns do not include fees or expenses.
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2500 Index measures the performance of the small- to mid-cap segment of the U.S. equity universe, commonly referred to as smid cap. The Russell 2500 Index is a subset
of the Russell 3000 Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.
The Morgan Stanley REIT Index is a capitalization-weighted index of the most actively traded real estate investment trusts (REITs), designed to measure real estate equity performance
The MSCI EAFE (Europe, Australasia, Far East) Net Index is recognized as the pre-eminent benchmark in the United States to measure international equity performance. It comprises 21
MSCI country indexes, representing the developed markets outside of North America.
The MSCI Emerging Markets IndexSM is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
The Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable and dollar denominated. It covers the U.S. investment-grade, fixed-rate bond market,
with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities.
The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index is an issuer-constrained version of the flagship US Corporate High Yield Index, which measures the
USD-denominated, high yield, fixed-rate corporate bond market. The index follows the same rules as the uncapped version, but limits the exposure of each issuer to 2% of the total market
value and redistributes any excess market value index-wide on a pro rata basis.
The J.P. Morgan EMBI Global Index includes U.S. dollar-denominated Brady bonds, Eurobonds, traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities.
The HFRX Equity Hedge Index is designed to be representative of Equity Hedge strategies which maintain positions both long and short in primarily equity and equity derivative securities.
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies including
but not limited to, convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage and relative value arbitrage. The strategies are
asset weighted based on the distribution of assets in the hedge fund industry.
* ECB - European Central Bank; CPI - Consumer Price Index; IG - Investment Grade; EM - Emerging Markets; Fed - The Federal Reserve
1
Volatility is measured in standard deviation. Standard deviation for the model portfolio is a statistical estimate measuring how dispersed returns are around an average. Standard
deviation is not meant to be a prediction of fund or model volatility, and actual volatility of any portfolio based in whole or in part on the models shown will vary and may be higher.
2
A drawdown is the percentage change between a portfolios peak and low prices in a given time period. The max historical drawdown is the largest drawdown since the inception of
the portfolio.
3
Sharpe ratio is a measure for calculating risk-adjusted return. It is the average return earned in excess of the risk-free rate per unit of volatility.
JPMorgan Funds are distributed by JPMorgan Distribution Services, Inc. (JPMDS) and offered by J.P. Morgan Institutional Investments, Inc. (JPMII); both affiliates of JPMorgan Chase & Co.
Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMDS and JPMII are both members of FINRA/SIPC.
Copyright 2017 JPMorgan Chase & Co. All rights reserved.
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