Investment Strategy

Investing in Europe as recession threatens and war continues

Oct 18, 2022

There are long-term investing opportunities aligned with policymakers’ priorities in energy transition, food security and defense.

War-time economics is complex, and Europe’s economy seems to be short circuiting. A perilous energy crisis has pushed inflation to record levels, is squeezing households, and threatens to worsen in the cold winter months ahead.

Import prices are soaring. Consumer confidence is the weakest it’s been since the European Union (EU) started tracking it. Business sentiment is weakening. The European Central Bank (ECB) is trying to do what it can. Governments are looking to crisis-management strategies: price caps, excess profits taxes and rationing.

Avoiding recession will be difficult. Yet profound disruption also brings investing opportunities.

Can Europe avoid a recession?

Whether or not Europe can steer clear of recession lies in how the energy crisis is managed.

The war in Ukraine and sanctions against Russia have upended Europe’s energy supplies. Russia was the continent’s traditional source for a quarter of its oil and almost 40% of its natural gas. Households and businesses need gas for heating, cooking and powering electricity. But transporting gas now is tricky, and high demand relative to limited supply has sent prices out of control.

European natural gas, even with a recent move lower, is still trading more than 60% higher* than a year ago. The EU succeeded over the summer in refilling its stockpiles of liquified natural gas (LNG), mostly from the United States, hoping to avoid rationing this winter. (Storage currently stands at average levels, meaning close to 90%.)

The real challenge will come in 2023.

Russia continues to limit the flow of natural gas to the continent—most recently through the closure of the Nord Stream 1 pipeline—and has given no indication of when the supply will resume. Despite higher LNG shipments from elsewhere, storage levels for winter 2023 are likely well short of what will be needed. Moreover, a colder than expected winter this year could draw heavily on reserves and exacerbate the shortage.

Russian natural gas exports to Europe plummeting

Sources: Bloomberg Finance L.P., EIA, CREA, JPMAM. Excludes pipelines to and through Turkey. Annual LNG data amortized daily until 2022. Data as of September 10, 2022.
This chart shows the 7-day average of Russian natural gas exports to Europe in millions of cubic meters per day from January 2019 to September 2022. In January 2019, the level is about 500 million cubic meters per day, made up of 170 million of Russian exports via Ukraine, 100 million via Yamal (Poland), 160 million via Nord Stream 1, and 60 million through liquefied natural gas (LNG). This then transitions to circa 400 in July 2019, as Nord Stream 1 annual maintenance takes its export contribution to zero. We see a series high of around 550 million at the end of 2019, largely due to a jump in exports via Ukraine to 230 million cubic meters. This then drops sharply to approximately 330 million in early 2020, as exports via Ukraine, Yamal and LNG fell. This then jumps to 490 million in late 2020 following another sharp decline in July due to the Nord Stream 1 maintenance. Since then, Russian exports to Europe have fallen quite consistently. Noticeably, there is a drop to around 200 million in January 2022, followed by a rise to around 350 million in early 2022 before a dramatic fall to just 61 million cubic meters at the end of the series. This final contribution is made up of no flows via Nord Stream 1, 43 million via Ukraine, and 18 million via LNG. Alt text: This stacked area chart shows the 7-day average of Russian natural gas exports to Europe in millions of cubic meters per day from January 2019 to September 2022.

Storage levels have improved

Sources: Bloomberg Finance L.P., Gas Infrastructure Europe. Data as of September 30, 2022.
This chart shows the European natural gas storage levels as a percentage of capacity from January 2021 to September 2022, with an estimate for capacity in October 2022. Capacity in January 2021 is at 72%, from where it falls to 30% in April 2021. There is then a steady rise through the summer to 77% in October 2021. Levels then drop through the winter to a series low of 25% in March 2022. Since then, capacity has risen to current levels of 89% at the end of the series.

The war represents a large “terms of trade” shock to the eurozone economy, in which import prices have surged disproportionately to export prices. Such large price fluctuations this winter could worsen the war’s economic fallout across the region.

Energy exporters, including the United States and Canada, should benefit. They will almost certainly be satisfying Europe’s energy needs for many years as Europe pivots away from Russian imports.

Europe is suffering a terms of trade shock as import prices surge relative to export prices

Sources: Statistical Office of the European Communities, Haver Analytics. Data as of June 30, 2022.
This chart shows terms of trade balance in the United States, Canada and Europe from December 2019 to August 2022, indexed at 100 on December 2019. Initially, the United States remains fairly flat, while Canada faces a negative shock down to 91 by May 2020, and the Eurozone rises to 106 in the same month. From there, Canada rises sharply over the next two years to a high of 120 before dipping to 117 at the end of the series (July 2022). The U.S. terms of trade steadily increases to finish at 108 in August 2022. And the eurozone gradually declines from highs of 106 in May 2020 to 89 in June 2022 to end the series.

The nearly 7% decline in the eurozone’s terms of trade since the start of the war could, in isolation, wipe away about one-third to a half of the GDP growth that would have occurred in 2022 and 2023 had the war not broken out. Risks to this projection are also skewed to the downside, particularly if the energy situation proves disorderly and disrupts European industrial sectors, particularly in Germany, where growth is more reliant on manufacturing and trade.

The challenges of monetary policy

Such a terms of trade shock pushes inflation higher, squeezes incomes and hurts a country’s reserves and external debt. Such conditions make designing policy solutions all the more challenging.

Higher energy prices have to be paid for by corporations passing on the costs to customers and governments potentially providing subsidies, caps or stimulus to help people pay the bills. But with risks skewed toward a worsening crisis, price caps and subsidies could prove insufficient. Rationing that stamps out demand may be needed to build sufficient energy supplies for next year. 

At the same time, the ECB, like the Federal Reserve, is expected to continue to tighten policy in order to have a fighting chance at price stability. Yet because the eurozone is a monetary union, there is more at risk as the ECB goes on the offensive. As credit conditions tighten, the more indebted nations, including Italy, will feel the effects more acutely than wealthier member states such as Germany.

The danger is that ECB policy will fail to transmit across all members effectively and will fragment the single market. The spread between Italian and German government debt (an indication of funding stresses in the periphery versus central Europe) is hovering around its highest levels since the depths of the COVID-19 crisis.

Emerging investment opportunities in Europe

Some investment strategies can thrive in a downturn.

The euro has depreciated meaningfully, falling 12% versus the U.S. dollar year-to-date and below parity for the first time in two decades. For example, Europe is suddenly “cheap” for American tourists. Indeed, the number of tourists visiting Europe this past summer soared to pre-pandemic levels. 

Europe is now cheap for those with dollars

The euro has depreciated meaningfully and increased risks to growth

Sources: Bruegel, Haver Analytics. Data as of August 31, 2022.
This chart shows the real effective exchange rate (REER) of the euro divided by the REER of the dollar from January 1993 to August 2022. A high figure suggests the euro is stronger relative to the dollar, while a low number denotes a stronger dollar. The series starts at 1.0, before dipping below 0.9 in January 1994 and bouncing higher again above 1.0 in July 1995. From here, there is a sharp decline to 0.6 in June 2001, followed by a strong period to a series high of 1.08 in April 2008. The EUR/USD REER then bounces between 0.9 and 1.0 until May 2014, where the series fall sharply to 0.7 by January 2016. Then, there is a move slightly higher to 0.8 in January 2021 before a sharp decline to 0.61 in August 2022.

A cheap euro should buffet Europe’s economy from the war shock in the short run, set the stage for faster growth in export sectors over the medium term, and eventually help to adjust Europe’s economy.

Given that currencies tend to “overshoot” when external shocks inflict damage on economies, now could be an opportune moment for U.S. dollar–based investors to pick up euros at historically depressed levels, or to consider investments in European real assets, such as real estate and infrastructure.

At the same time, the stresses related to the current crisis and COVID-19 aftershocks have made it difficult for many Europe-based companies to maintain their profits and service their debts. Loan defaults are already on the rise. A window appears to be opening for investors with expertise in special situations to acquire at a discount and restructure troubled credit and real estate assets. Such strategies can also generate yield in portfolios and returns with an opportunity for downside protection.   

And investing opportunities aligned with policymakers’ priorities—around themes such as the energy transition, food security and defense—could offer long-term investors growth at a time when it is scarce.

We can help

For a thoughtful analysis of how such strategies might fit into your portfolio and best align with your family’s goals, reach out to your J.P. Morgan team.

 

*As of October 6, 2022.

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

*Required Fields

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

Enter your First Name

> or < are not allowed

Only 40 characters allowed

Enter your Last Name

> or < are not allowed

Only 40 characters allowed

Select your country of residence

Enter valid street address

> or < are not allowed

Only 150 characters allowed

Enter your city

> or < are not allowed

Only 35 characters allowed

Select your state

> or < are not allowed

Enter your ZIP code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your postal code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your phone number

Tell Us More About You

0/1000

Only 1000 characters allowed

Checkbox is not selected

Your Recent History

Important Information

Key Risks

This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management 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. J.P. Morgan is committed to making our products and services accessible to meet the financial services needs of all our clients.  If you are a person with a disability and need additional support, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

General Risks & Considerations

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.

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, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan 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 J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan 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 J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.

Investment strategies are selected from both J.P. Morgan 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.

As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.

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 J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.

The Six Circles Funds are U.S.-registered mutual funds managed by J.P. Morgan and sub-advised by third parties. Although considered internally managed strategies, JPMC does not retain a fee for fund management or other fund services.

Legal Entity, Brand & Regulatory Information

In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank-managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB and JPMS and CIA are affiliated companies under the common control of JPM. Products not available in all states.

In Germany, this material is issued by J.P. Morgan SE, with its registered office at Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB). In Luxembourg, this material is issued by J.P. Morgan SE—Luxembourg Branch, with registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—Luxembourg Branch is also supervised by the Commission de Surveillance du Secteur Financier (CSSF); registered under R.C.S Luxembourg B255938. In the United Kingdom, this material is issued by J.P. Morgan SE—London Branch, registered office at 25 Bank Street, Canary Wharf, London E14 5JP, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—London Branch is also supervised by the Financial Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by J.P. Morgan SE, Sucursal en España, with registered office at Paseo de la Castellana, 31, 28046 Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE, Sucursal en España is also supervised by the Spanish Securities Market Commission (CNMV); registered with Bank of Spain as a branch of J.P. Morgan SE under code 1567. In Italy, this material is distributed by J.P. Morgan SE—Milan Branch, with its registered office at Via Cordusio, n.3, Milan 20123, Italy, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—Milan Branch is also supervised by Bank of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB); registered with Bank of Italy as a branch of J.P. Morgan SE under code 8076; Milan Chamber of Commerce Registered Number: REA MI 2536325. In the Netherlands, this material is distributed by J.P. Morgan SE—Amsterdam Branch, with registered office at World Trade Centre, Tower B, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—Amsterdam Branch is also supervised by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) in the Netherlands. Registered with the Kamer van Koophandel as a branch of J.P. Morgan SE under registration number 72610220. In Denmark, this material is distributed by J.P. Morgan SE—Copenhagen Branch, filial af J.P. Morgan SE, Tyskland, with registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—Copenhagen Branch, filial af J.P. Morgan SE, Tyskland is also supervised by Finanstilsynet (Danish FSA) and is registered with Finanstilsynet as a branch of J.P. Morgan SE under code 29010. In Sweden, this material is distributed by J.P. Morgan SE—Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 11147, Sweden, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE—Stockholm Bankfilial is also supervised by Finansinspektionen (Swedish FSA); registered with Finansinspektionen as a branch of J.P. Morgan SE. In France, this material is distributed by JPMorgan Chase Bank, N.A.—Paris Branch, registered office at 14, Place Vendome, Paris 75001, France, registered at the Registry of the Commercial Court of Paris under number 712 041 334 and licensed by the Autorité de contrôle prudentiel et de resolution (ACPR) and supervised by the ACPR and the Autorité des Marchés Financiers. In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, with registered address at rue du Rhône, 35, 1204, Geneva, Switzerland, which is authorized and supervised by the Swiss Financial Market Supervisory Authority (FINMA) as a bank and a securities dealer in Switzerland.

This communication is an advertisement for the purposes of the Markets in Financial Instruments Directive (MIFID II) and the Swiss Financial Services Act (FINSA). Investors should not subscribe for or purchase any financial instruments referred to in this advertisement except on the basis of information contained in any applicable legal documentation, which is or shall be made available in the relevant jurisdictions (as required).

In Hong Kong, this material is distributed by JPMCB, Hong Kong branch. JPMCB, Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by JPMCB, Singapore branch. JPMCB, Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by JPMCB, Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by JPMCB Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank, N.A. is a national banking association chartered under the laws of the United States, and as a body corporate, its shareholder’s liability is limited.

With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions. We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities or instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the Fund may not be publicly offered in any Latin American country, without previous registration of such fund’s securities in compliance with the laws of the corresponding jurisdiction. Public offering of any security, including the shares of the Fund, without previous registration at Brazilian Securities and Exchange Commission—CVM is completely prohibited. Some products or services contained in the materials might not be currently provided by the Brazilian and Mexican platforms.

JPMorgan Chase Bank, N.A. (JPMCBNA) (ABN 43 074 112 011/AFS Licence No: 238367) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by JPMCBNA in Australia is to “wholesale clients” only. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

JPMS is a registered foreign company (overseas) (ARBN 109293610) incorporated in Delaware, U.S.A. Under Australian financial services licensing requirements, carrying on a financial services business in Australia requires a financial service provider, such as J.P. Morgan Securities LLC (JPMS), to hold an Australian Financial Services Licence (AFSL), unless an exemption applies. JPMS is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the SEC, FINRA and CFTC under U.S. laws, which differ from Australian laws. Material provided by JPMS in Australia is to “wholesale clients” only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly, to any other class of persons in Australia. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

This material has not been prepared specifically for Australian investors. It:

  • May contain references to dollar amounts which are not Australian dollars;
  • May contain financial information which is not prepared in accordance with Australian law or practices;
  • May not address risks associated with investment in foreign currency denominated investments; and
  • Does not address Australian tax issues.

References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan team.

© 2022 JPMorgan Chase & Co. All rights reserved.

LEARN MORE About Our Firm and Investment Professionals Through FINRA Brokercheck

To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products

 

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

Equal Housing Lender Icon Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.