Portfolio Resilience

Indices

S&P 500: Standard & Poor’s 500 Index is an unmanaged broad-based index that is used as representation of the U.S. stock market. It includes 500 widely held common stocks. Total return figures reflect the reinvestment of dividends. “S&P500” is a trademark of Standard and Poor’s Corporation.

Bloomberg U.S. Aggregate: Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and nonagency).

HFRI Macro: Hedge Fund Research, Inc. Macro Index is a financial index that tracks the performance of hedge funds using macroeconomic strategies, such as interest rate changes and currency fluctuations. Compiled by Hedge Fund Research, Inc., it serves as a benchmark for evaluating macro-focused hedge funds.

Important Information

Key Risks

This material is for informational purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments involve greater risks than traditional investments and should not be deemed a complete investment program. They are not tax-efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain. The value of the investment may fall as well as rise and investors may get back less than they invested.

Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the original investment. The use of derivatives may not be successful, resulting in investment losses, and the cost of such strategies may reduce investment returns.​

GENERAL RISKS & CONSIDERATIONS

Investing in Structured Notes involves a number of significant risks. We have set forth certain risk factors and other investment considerations relating to the investment below. Not all investments are suitable (or in the best interest) for all investors. You should analyze the Structured Notes based on your individual circumstances, taking into account such factors as investment objectives, tolerance for risk, and liquidity needs.

• Fixed income: Bonds are subject to interest rate risk, credit and default risk of the issuer. Bond prices generally fall when interest rates rise.

• Equities: The price of equity securities may rise or fall due to the changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. Equity securities are subject to “stock market risk,” meaning that stock prices in general may decline over short or extended periods of time.

• No direct claim and no investment in the underlying: Investors have no claim to the underlying index or basket of securities

• Use of derivatives: The purchasing of Structured Investments involve derivatives and risk factors that may not be suitable (or in the best interest) for all investors. Before investing in a Structured Investment, investors should review the accompanying prospectus and prospectus supplement to understand the actual terms and risks associated with specific structured products. In certain transactions, investors may lose their entire investment.

• Principal at risk: Structured Products do not guarantee any return of your investment. Holders may lose 100% of their initial investment. A Structured Product may specify a level of protection at maturity, subject to the issuer’s credit risk. Notes that offer principal protection are only protected up to the specified protected amount

• Buy and hold to maturity instruments: Structured Notes are not designed to be short-term trading instruments but rather investments that should be held until maturity.

• Costs and fees: There are certain costs and fees associated with investing in Structured Notes, and you should consider these prior to investing. Details are contained in the offering material for a particular investment.

• Risk of loss: Structured Notes do not guarantee any particular return of your investment, unless the note has principal protection, subject to the issuer’s credit risk. Structured Notes may decline in value in connection with a decline in the underlying asset value.

• Liquidity risk: As Structured Notes are intended to be held to maturity, there may be no or only a very limited secondary market, which means you may be unable to sell before the product reaches maturity. Even if a secondary market can be found, the limited secondary market, a lack of liquidity and/or low trading volume in the market for the Structured Notes would decrease the market value of the Structured Notes. Thus, even if a secondary market exists, you may lose significant value if sold prior to maturity.

• Issuer credit and default risk: Structured Notes are unsecured debt obligations of the issuing company, and thus subject to credit risk and default by the issuer. A decline in the creditworthiness of the issuer may affect its ability to meet its obligations, including the issuer’s ability to pay interest and repay principal. A default by an issuer could result in the loss of some or all of the amount you invest, even for Structured Notes denoted as “principal protected.” Therefore, the financial condition and creditworthiness of the issuer are important considerations.

• ETF tracking and correlation risk: The performance and market value of an exchange traded fund ("ETF") may not correlate with the performance of the ETF’s underlying index due to factors such as, but not limited to, holding different instruments than the index, corporate actions, and transaction costs and fees. In addition, factors such as, but not limited to, market volatility and supply/demand may cause an ETF share’s market value to differ from its net asset value. These factors may materially and adversely affect the value of an ETF-linked product Volatility risk: The performance of the Structured Notes may change unpredictably. This volatility may be influenced by the market and/or external factors, including financial, political, regulatory, economic events and other conditions.

• Derivatives/hedging risk: The issuer may at any time establish, maintain, adjust or unwind hedge positions in respect of its obligations under the product, but it is not obligated to do so. Hedging activity may adversely affect the value of assets underlying the product and the performance of the product.

• No dividend or interest payments or voting rights, and tax consequences of investing in Structured Notes: Holders of a Structured Note do not have voting rights. There are no dividends or interest payments paid during the term of a Structured Note. You may, however, have to pay income taxes on any imputed annual income even though no payment is received until maturity. J.P. Morgan does not provide tax advice. You should review the issuer’s offering material and consult with your own tax advisor.

• No government or other insurance protection: The Structured Notes are not bank deposits insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC), or any other governmental agency or deposit protection fund.

• Early redemption: The Structured Notes may be redeemed before the scheduled maturity date other than as a result of being called by the issuer. Certain events that may result in an early redemption of the Structured Notes: If the Structured Notes are redeemed early following such an event, you may receive back less than your original investment. The amount payable to you on an early redemption may also factor in the issuer’s costs of terminating hedging and funding arrangements associated with the Structured Notes.

• Currency/exchange risk: Where the Structured Notes are benchmarked to a foreign currency, changes in various factors, including rates of exchange, may have an adverse effect on the value of the investment.

• Market disruption and economic factors: The trading market for the Structured Notes might be volatile and might be disrupted or adversely affected by many events. There can be no assurance that events in the United States or elsewhere will not cause market volatility or that such volatility will not adversely affect the price of the Structured Notes, or that economic and market conditions will not adversely affect the price of the Structured Notes, or that economic and market conditions will not have any other adverse effect. Market disruption can adversely affect the performance of the Structured Notes.

• In addition to the level of the underlying on any day, the value of the Structured Investment will be affected by a number of economic and market factors, including the implied volatility of the underlier, the time to maturity, dividend rates, interest rates, issuer creditworthiness and macroeconomic factors, such as financial, political, regulatory or judicial events.

• Capped returns: The return on Structured Notes may be limited by a specific maximum return, coupon or upside participation level, as defined at offering.

• Potential conflicts: When performing duties, our and JPMorgan Chase & Co.’s economic interests and your economic interests in the Structured Notes potentially could be adverse when our family of companies plays multiple roles. It is also possible that hedging or trading activities of ours or our affiliates in connection with the Structured Notes could result in substantial returns for us or our affiliates while the value of the Structured Notes decline.

• The above is not an exhaustive list of all the risks or other investment considerations relating to the product. For a complete assessment of the risks associated with this investment, you should review, with your own professional advisors where necessary, the offering circular, term sheet and other related documentation for a particular trade, which fully describe all terms, conditions and risks. Not all investments are suitable (or in the best interest) for all investors. Investors should analyse products based on their individual circumstances and taking into account such factors as their investment objectives, tolerance for risk and liquidity needs.

Private credit securities may be illiquid, present significant risks, and may be sold or redeemed at more or less than the original amount invested. There may be a heightened risk that private credit issuers and counterparties will not make payments on securities, repurchase agreements or other investments. Such defaults could result in losses to the strategy. In addition, the credit quality of securities held by the strategy may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the strategy. Lower credit quality also may affect liquidity and make it difficult for the strategy to sell the security. Private credit securities may be rated in the lowest investment grade category or not rated. Such securities are considered to have speculative characteristics similar to high yield securities, and issuers of such securities are more vulnerable to changes in economic conditions than issuers of higher-grade securities.

 

Private investments are subject to special risks. Individuals must meet specific suitability standards before investing. This information does not constitute an offer to sell or a solicitation of an offer to buy . As a reminder, hedge funds (or funds of hedge funds), private equity funds, real estate funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid, and are not required to provide periodic pricing or valuation information to investors, and may involve complex tax structures and delays in distributing important tax information. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For complete information, please refer to the applicable offering memorandum. Securities are made available through J.P. Morgan Securities LLC, Member FINRA, and SIPC, and its broker-dealer affiliates.

 

As a reminder, hedge funds (or funds of hedge funds) often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid, and are not required to provide periodic pricing or valuation information to investors, and may involve complex tax structures and delays in distributing important tax information. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For complete information, please refer to the applicable offering memorandum.

 

Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Use of leveraged commodity-linked derivatives creates an opportunity for increased return but, at the same time, creates the possibility for greater loss.​

 

Diversification and asset allocation does not ensure a profit or protect against loss

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g., equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

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