JPM – Impact Investing – June 2018 - Text Alternative Script        

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Opinions expressed are those of the speakers and may differ from those of other JPMorgan employees and affiliates. Neither JPMorgan nor any of its affiliates can represent that the statements or opinions expressed today will materialize.

This is not an investment research video. The views and strategies described may not be suitable for all investors. This video is not intended as personal investment advice or as a solicitation or recommendation. If you are considering any investment or strategy, you should speak with your JPMorgan representative before investing. Past performance is no guarantee of future results.

Please read important information at the end of the presentation.

INVESTMENT PRODUCTS:

• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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Ms. Clemens, a woman with strawberry blonde hair and blue eyes, stands in a room with a wall-sized window. Text appears, briefly, on screen.

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Impact Investing.

Ms. Clemens:

Impact investing is investing along your mission.

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Aubre Clemens, Vice President, JPMorgan Manager Selection Due Diligence Team.

Ms. Clemens:

So, finding specific types of investment opportunities to allow you to provide funding to that mission.

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Impact Investing. Common impact investing sectors:

- Community Development;

 - Microfinance;

 - Small Business Finance;

 - Education;

 - Renewable Energy and Climate Change;

 - Sustainable Agriculture and Development;

 - Health and Wellness;

 - Natural Resources and Conservation:

 - Sustainable Consumer Products and Fair Trade.

Ms. Clemens:

They tend to be more focused on affordable housing, focused on education and healthcare, but what they are looking to accomplish is more than just your traditional return. It's also giving you that component where you actually can quantify what your money has done to provide a solution for something.

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Ms. Clemens:

Most of the impact investments are done through direct or private equity. You tend to have less liquidity with impact funds because of the time needed to be invested.  And they're usually five to 10 years long.

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Impact Investing. Shifting wealth dynamics continue to drive demand for impact investing:

 - $58.7 trillion of wealth will transfer over the next 35 years, primarily to women and millennials. Source: Center of Wealth and Philanthropy of Boston College.

 - 90% of woman believe making a positive impact on society is important. Source: Center for Talent Innovation.

 - 45% of Millennials want to use their wealth to help others, and consider social responsibility a factor in making investment decisions. Source: Spectrem Group.

Ms. Clemens:

Impact investing is growing in popularity for women as well as millennials that are looking to find ways to give back to their communities.

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Impact Investing. United Nations Sustainable Development Goals:

 - No Poverty;

 - Zero Hunger;

 - Good Health and Well-Being;

 - Quality Education;

 - Gender Equality;

 - Clean Water and Sanitation;

 - Affordable and Clean Energy;

 - Decent Work and Economic Growth;

 - Industry, Innovation, and Infrastructure;

 - Reduced Inequalities;

 - Sustainable Cities and Communities;

 - Responsible Consumption and Production;

 - Climate Action;

 - Life Below Water;

 - Life on Land;

 - Peace, Justice, and Strong Institutions;

 - Partnership for the Goals.

Ms. Clemens:

The UN established back in 2015 what they call the sustainable development goals, which have actually been great in providing some framework for our managers to quantify their impact over time.

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Ms. Clemens:

It allows them to show what they are actually being able to accomplish by investing in a specific way. So whether that be focusing on getting cars off the road, you can actually look at your carbon footprint and measure that relative to an index. For us, we're looking at the teams that have been in place. How long have they been focused on impact investing. Do they have strong performance or has it been tied to one specific company that they've owned? Or has it been more diversified across their portfolios over time? We also look to make sure that it's actually part of the culture of a firm. We want to make sure that they are doing impact because they believe in impact and that they can drive returns over time.

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IMPORTANT INFORMATION ABOUT YOUR INVESTMENTS AND POTENTIAL CONFLICTS OF INTEREST

Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “JPMorgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits JPMorgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when JPMorgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as JPMorgan Investment Management Inc.; (2) when a JPMorgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when JPMorgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when JPMorgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that JPMorgan has with other clients or when JPMorgan acts for its own account.

Investment strategies are selected from both JPMorgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward-looking views in order to meet the portfolio's investment objective.

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While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that JPMorgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude JPMorgan managed strategies (other than cash and liquidity products) in certain portfolios.

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