Chief Investment Office

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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.

Please read important information at the end.

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J.P. Morgan.

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Chief Investment Office: Managing Your Wealth.

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An executive with short salt-and-pepper hair, Richard Madigan, speaks from a spacious office with wall-sized windows overlooking Manhattan.

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Richard Madigan, Chief Investment Officer, J.P. Morgan Private Bank.

Mr. Madigan:

I'm Richard Madigan, the Chief Investment Officer of J.P. Morgan's Private Bank, and I want to share with you today how we manage our clients’ wealth.

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A video clip shows Mr. Madigan meeting with his Wealth Management team in a large conference room. Each attendee has documents, charts, and notebooks in front of them.

Mr. Madigan:

We ground our investment philosophy on four anchor pillars. The first, and probably the most important, is being a long-term investor.

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Long-Term Perspective.

Mr. Madigan:

The trick really to long-term investing is to stay invested. Holding through those cycles over a longer period generates constructive and positive returns.

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A Wealth Management specialist studies financial charts using a mobile device.

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Tactical Flexibility.

Mr. Madigan:

The second pillar is tactical flexibility, and that's taking a long-term strategic view and then overlaying how to navigate a macro-cycle, a geopolitical headline, and where we see the smartest risk and mix of risk in a portfolio.

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A montage shows the Capitol Building, a cargo ship entering a large port, and an aerial view of an expansive farm.

Mr. Madigan:

It's not timing a market; it's navigating an investment cycle, and there's a critical difference between the two.

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Specialization.

Mr. Madigan:

The third pillar is specialization, and we've made a significant shift on my team, not only in terms of bringing specialists in by asset class, but multi-asset class portfolio managers. I think the industry's getting this wrong in still anchoring around a generalist role. The world's a great deal more complicated. I think the challenge of investing and the opportunities are demanding a degree of specialization we really haven't seen in a generation.

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A montage shows Investment Managers collaborating and working individually. They look at large digital charts at their workstations. They look at data from Bloomberg Businessweek. They review printed copies of Global Equity Market information and study paper spreadsheets. They also examine multiple computer screens, displaying financial graphs.

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Asymmetric Approach.

Mr. Madigan:

The fourth pillar is an asymmetric approach to risk. And in simple terms, that really means focusing much more on trying to capture more of the upside in a market when it's going up and less of the downside in a market when it's going down.

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A video clip shows a stock market graph displaying line graphs of various investments.

Mr. Madigan:

The critical path to doing that is making sure that we're getting the right strategic asset allocation so that diversification can help and play its part.

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A video clip shows Mr. Madigan in his office studying economic reports. Then, a close-up of Mr. Madigan

Mr. Madigan:

And I think much more importantly, making sure that we compound that difference over the investment horizon of being a long-term investor.

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Chief Investment Office: The CIO Team.

Mr. Madigan:

I want to focus on the CIO team. We work with a hundred investment professionals globally. We very much focus on an institutional approach to money management, and we've made a tremendous shift into specialization and specialists.

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A montage shows Mr. Madigan and his team taking notes and exchanging ideas during a video conference.

Mr. Madigan:

We've added Asset Class Portfolio Managers as the complexity of what happens within a unique asset class becomes so much more important in driving not only the outcome of returns, but how we take risk.

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Asset Class Portfolio Managers.

Mr. Madigan:

Asset Class Portfolio Managers help me analyze the opportunities within each asset class, so there's a lot of rigor and depth in terms of how we identify opportunities and try to identify things that make the most sense to be in a portfolio and also not to be in a portfolio.

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Identify opportunities within asset classes.

Multi-Asset Class Portfolio Managers.

Mr. Madigan:

My multi-asset class portfolio management team can help me take each of those individual ideas at an asset class level and determine how it fits into a portfolio, not only in terms of how we right size it but how we actually implement that view.

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Identify opportunities across asset classes.

Portfolio Construction and Analytics.

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A multi-asset class portfolio manager looks at multiple computer screens displaying financial data… and a printed report entitled "Sector Allocation Analysis."

Mr. Madigan:

The other critical piece is focusing on portfolio analytics, portfolio construction, quantitative risk management. That's the anchor or the pillar to everything we do. We're able to size risks and portfolios and actually stress test those portfolios as well.

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Construct risk-efficient portfolios.

Manager Selection and Due Diligence.

Mr. Madigan:

Another critical team that we work with is our manager selection and due diligence teams.

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In a conference room, several business executives exchange ideas at a formal meeting.

Mr. Madigan:

That's crucial because not all investment vehicles are created equally, whether that's an active manager or whether that's a passive strategy.

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In an office with large windows overlooking a city, three portfolio managers review physical and digital documents.

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Search for and monitor strategies across asset classes.

Mr. Madigan:

Having a dedicated group of people who can understand not only how those managers generate returns with consistency but also help negotiate the fees that we're paying the least possible with regard to implementation cost, really is something that I'm path dependent on and my team is.

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Managed Solutions.

Mr. Madigan:

The Managed Solutions part of our business is really focused on innovation, and that involves portfolio specialists that help us drive not only innovation but also, communication.

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A diverse group of financial specialists participate in a lively meeting at a spacious office.

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Drive innovation and enhance the client experience.

Mr. Madigan:

That way my CIO team is focused full-time on managing your money.

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IMPORTANT INFORMATION

Key Risks

This material is for information 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”). 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 representative.

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.

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