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Investment Strategy

How can you hedge your portfolio against uncertainty?

What if there was a way to protect your portfolio? Would you consider capping your gains in exchange for reducing potential losses? What if there was a way to protect your portfolio in a cost-effective way?

Well, there is.

In an unpredictable market environment, timing the market is nearly impossible. Instead, adopting a strategy that can help protect against  uncertainty can be invaluable. By aligning your investment approach with your goals, you may better preserve your portfolio and potentially position it for growth across various market conditions, ensuring you remain invested for the long term.

Derivatives can help investors navigate many of today’s pressing investment challenges. These contracts are not without risks, as they can be more complex than traditional investment products. They involve risks such as liquidity, counterparty and credit risks, and investors must meet suitability requirements to trade them. But working with the right investment partners can help minimize them, and we believe derivatives can be an important tool for managing your investment portfolio.

Here’s an introduction to help you consider whether, and when, derivatives might be appropriate additions to your investing toolkit to help achieve your goals.

It’s an interesting moment for derivatives

Derivatives are financial instruments that are contracts deriving value from what they’re tied to, including stocks, bonds, commodities, currencies and other tradeable things such as indexes, interest rates—and even the weather. Several factors right now are bringing derivatives to the fore:

  • Elevated interest rates: Rates are significant drivers of derivative pricing. Higher interest rates can lead to interesting derivative opportunities. (For example, one class of derivatives, structured notes, particularly benefits from high interest rates.) While rates are elevated now, that may not last. That’s why we like the timing today.
  • Strong economy in a fragile world: As our 2024 Mid-Year Outlook title says of the new environment, economic outlooks are strong, yet geopolitical risk is top of mind for investors and can hinder plans to stay invested. And we believe our clients should be fully invested. Derivatives can help hedge against uncertainty and allow for longer-term investing time horizons.
  • New accessibility: Historically, only the most sophisticated investors could purchase derivatives. Today, at a time when we think there may be particularly interesting opportunities, derivatives have also become more accessible to individual investors—and in bespoke forms.

Whatever your goals, from preserving capital to adding income and more, derivatives can be customized to help you achieve them.

What are derivatives—and how can they enhance your portfolio?

Derivatives can be traded on an exchange or in the over-the-counter (OTC) market; each offers different types of derivatives contracts. Investing in derivatives makes you a party to a binding agreement, and they are a flexible product that can be used to achieve multiple goals, but often designed to hedge against various portfolio risks or enhance potential yield.

Examples of derivatives include:

  • Forward contracts—Two sides agree in a private OTC market to buy or sell an asset at an agreed price and date in the future
  • Futures—Similar to forwards, but traded on an exchange
  • Options—Similar again, but they give the buyer the right, although not the obligation, to buy (“call”) and sell (“put”) at a predetermined price in the future. Meanwhile, the seller has the obligation to fulfill the terms if the buyer exercises the option. They can be traded on an exchange or OTC
  • Structured products—Created by pairing a fixed income instrument with a package of OTC derivatives
  • Swaps—A derivative contract where two parties agree to exchange cash flows based on the future performance of two different financial instruments for a specified period of time

When considering derivatives, you’ll want to consider your objectives, risk tolerance and need for liquidity, among other factors. Here are a few things derivatives can help you accomplish.

Hedge against portfolio risks: Derivatives can allow you to hedge against risks on both the asset and liability sides of your balance sheet. For equities, you might use derivatives to hedge against a decline in a portfolio or single stock to limit potential losses.

Another derivative, an interest rate swap, allows investors to hedge against fluctuations in interest rate movements by locking in rates or borrowing costs.

Potentially enhance risk-adjusted returns: An investment’s value can rise or fall, of course. The decision to take on full upside and downside risks can be daunting. But certain derivative strategies can be constructed to adjust that. If, say, you’re looking to reflect certain market views in your portfolio, derivatives can help create a more compelling risk/reward profile than simply holding a traditional long-only cash investment.

For example, a structured note can allow you, for a price, to cap some of your upside potential in exchange for embedding a floor, or maximum loss, on the downside.

Provide an approach to generating income: Fixed income, a common portfolio staple, has some limitations. Price and yield, for example, are set by the current market environment. You might not want what’s available. A structured note can take other assets—investment grade financials or technology stocks, for example—and turn them into income-producers.

Certain types of derivative products can allow investors to monetize the risk premium embedded in an asset class such as equities and turn it into an income generator. Its payment to the investor reflects equity market risk, plus some embedded downside protection—with the potential to pay more than public fixed income markets.

Potentially provide tax efficiency:  By incorporating derivatives into their portfolios, investors may be able to strategically manage their investments to reduce overall tax liabilities while maintaining market exposure. Leveraging derivatives in this manner can potentially lead to smarter, more tax-efficient investment outcomes and improved after-tax returns

Derivatives and structured products, like most investment products, come with a degree of risk. Before purchasing such products, make sure you understand their terms. See important disclaimers at the end of this article for more information.

A case study: Derivatives in real life

How could a strategy actually work? Among the possibilities, here is an example.

Achieving leveraged upside exposure

Tom is looking to purchase a vacation home in Switzerland, as he is an avid alpine skier. He thinks the tech sector will return more than the broad market over the short term, and wants to act on this conviction. But with his pending house purchase, he doesn’t have enough liquidity to buy stock up front, and he doesn’t want to sell holdings in his diversified portfolio.

His team helped him choose a growth-focused single tech stock poised to potentially benefit from the rollout of its new artificial intelligence (AI) enhanced product. Given the compelling outlook, he bought a call option that allowed him to potentially buy the stock if it appreciated to a specified level. He only needed to pay a small outlay (the “premium,” or the option’s price), which was less than the value of the underlying stock. His maximum loss on this position was also limited to the premium.

During the options contract, the tech stock generated positive returns on the call option, as the stock appreciated after the company’s new product rollout. This prompted Tom to exercise his contract. The call option gave Tom the extra tech exposure he wanted, did not disrupt his portfolio’s diversification, and limited his downside risk.

All derivatives and structured products offered on our platform go through J.P. Morgan’s rigorous investment strategy process. Reach out to your team to learn more about our platform and to see how our comprehensive derivatives products and strategies, suited to various needs, may enhance your portfolio.

For sophisticated investors, certain investment options can help navigate many of today’s challenges.

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Important Information

All case studies are shown for illustrative purposes only and are hypothetical. Any name referenced is fictional, and may not be representative of other individual experiences. Information is not a guarantee of future results.

Please keep in mind

This material is a product of an Associated Person on the J.P. Morgan Wealth Management Foreign Exchange, Commodity and Rates Product and Solutions group with responsibilities for the marketing and sale of swaps and OTC financial derivatives. This material is not a product of a J.P. Morgan Research Department and is not a research report and is not intended as such, although it may refer to a J.P. Morgan Research report or research analyst. This material is for the general information of our clients and is a “solicitation” only as that term is used within CFTC Rule 1.71 and 23.605 promulgated under the U.S. Commodity Exchange Act. The information contained herein is as of the date and time noted above, and J.P. Morgan does not undertake any obligation to update such information and does not warrant its completeness or accuracy. This material does not purport to contain all of the information that an interested party may desire, and may provide only a limited view of a particular market. Transactions involving securities and financial instruments mentioned herein may not be suitable for all investors. Clients should contact their salespersons at, and execute transactions through, a J.P. Morgan entity qualified in their local jurisdiction, unless governing law permits otherwise. J.P. Morgan does not provide, affirm, or opine on the tax treatment of specific securities or derivatives transactions in existence or of a hypothetical nature. For tax‐related advice, clients should consult an independent tax advisor. All questions related to swaps and OTC financial derivatives referenced in these materials must be directed to jpm_pb_fxc@jpmorgan.com.

This information is intended to be a high-level overview of potential hedging strategies that can be executed through OTC options to achieve specific goals. These strategies may not be suitable for all investors. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument. In discussion of options and option strategies, results and risks are based solely on the hypothetical examples cited; actual results and risks will vary depending on specific circumstances. Investors are urged to consider carefully whether option or option-related products in general, are suitable to their needs. For a complete discussion of risks associated with any investment, please review offering documents and speak with your investment specialists.

This material is intended to help you understand the financial consequences of the concepts and strategies discussed here in very general terms. However, the strategies found herein often involve complex tax and legal issues. Only your own attorney and other tax advisors can help you consider whether the ideas illustrated here are appropriate for your individual circumstances.

Please note that these marketing materials discuss trading over-the-counter (OTC) options. In any OTC transaction with JPMorgan, the client will hold counter-party risk. Additionally, the potential may exist for the transactions discussed in the presentation to be executed in the listed market. Several considerations should be taken into account including strategy, size of position, level of customization, term of transaction and cost. Please consult with your JPMorgan team for more information. Not all option strategies are suitable for investors; certain strategies may expose investors to significant potential losses. We have generally summarized the risks of selected derivative strategies. For additional risk information, please call your JPMorgan team for a copy of “Characteristics and Risks of Standardized Options” or visit: http://www.optionsclearing.com/about/publications/character-risks.jsp. We advise investors to consult their tax advisors and legal counsel about the tax implications of these strategies. Please also refer to option risk disclosure documents. Note: This information is intended to be a high-level overview of potential hedging strategies that can be executed through OTC options to achieve specific goals. These strategies may not be suitable for all investors. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

J.P. Morgan Chase &Co. and its affiliates and/or subsidiaries do not practice law, and do not give tax, accounting or legal advice. We will, however, be pleased to consult with you and your legal and tax advisors as you move forward with your own planning. Additionally, please read the Important Information pages at the end of this presentation.

Key Risks:

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. Not all option strategies are suitable for all investors. Certain strategies may expose investors to significant potential risks and losses. For additional risk information, please read the “Characteristics and Risks of Standardized Options” : http://www.optionsclearing.com/about/publications/character-risks.jsp. We advise investors to consult their tax advisors and legal counsel about the tax implications of these strategies. Investors are urged to carefully consider whether options or option-related products or strategies are suitable for their needs.

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.
  • Liquidity: Unwinds may be provided at JPMorgan discretion. However, the proceeds of an unwind may fall short of the expected payout at maturity given the same underlying value.
  • Returns: The proceeds may depend on many variables including, but not limited to, the level and implied volatility of the underlying asset. The return may be positive, negative, or zero.
  • Holding period: The derivative position may be held to maturity or closed out prior to maturity. Held to maturity or closed out prior to maturity, the net return to investors may be positive, negative or zero.
  • Legal & tax: This material is distributed with the understanding that it is not rendering accounting, legal or tax advice. Consult your legal or tax advisor concerning such matters.
  • Performance: Past performance is no guarantee of future results. Options related disclosures: If the information contained herein regards options related strategies, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the Option Clearing Corporation’s Characteristics and Risks of Standardized Options, please contact your J.P. Morgan Representative or visit the OCC’s website at https://www.theocc.com/about/publications/characterrisks.jsp
  • Counterparty credit: All payments are subject to J.P. Morgan counterparty credit.
  • Foreign exchange: Holders of foreign securities can be subject to foreign exchange risk, exchange rate risk and currency risk, as exchange rates fluctuate between an investment’s foreign currency and the investment holder’s domestic currency. Conversely, it is possible to benefit from favorable foreign exchange fluctuations.
  • 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 analyze products based on their individual circumstances and taking into account such factors as their investment objectives, tolerance for risk and liquidity needs.

Structured product involves derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. The most common risks include, but are not limited to, risk of adverse or unanticipated market developments, issuer credit quality risk, risk of lack of uniform standard pricing, risk of adverse events involving any underlying reference obligations, risk of high volatility, risk of illiquidity/little to no secondary market, and conflicts of interest. Before investing in a structured product, investors should review the accompanying offering document, prospectus or prospectus supplement to understand the actual terms and key risks associated with each individual structured product. Any payments on a structured product are subject to the credit risk of the issuer and/or guarantor. Investors may lose their entire investment (i.e., incur an unlimited loss). The risks listed above are not complete. For a more comprehensive list of the risks involved with this particular product, please speak to your J.P. Morgan representative. If you are in any doubt about the risks involved in the product, you may clarify with the intermediary or seek independent professional advice. The risks listed above are not complete. For a more comprehensive list of the risks involved with this particular product, please speak to your J.P. Morgan representative. If you are in any doubt about the risks involved in the product, you may clarify with the intermediary or seek independent professional advice.

In actual transactions, the client’s counterparty for OTC derivatives applications is JPMorgan Chase Bank, N.A. and its affiliates.

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.

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.

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. Insurance products 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 JPM. Products not available in all states.

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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 Belgium, this material is distributed by J.P. Morgan SE—Brussels Branch with registered office at 35 Boulevard du Régent, 1000, Brussels, Belgium, 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 Brussels Branch is also supervised by the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) in Belgium; registered with the NBB under registration number 0715.622.844. In Greece, this material is distributed by J.P. Morgan SE—Athens Branch, with its registered office at 3 Haritos Street, Athens, 10675, Greece, 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—Athens Branch is also supervised by Bank of Greece; registered with Bank of Greece as a branch of J.P. Morgan SE under code 124; Athens Chamber of Commerce Registered Number 158683760001; VAT Number 99676577. In France, this material is distributed by J.P. Morgan SE—Paris Branch, with its registered office at 14, Place Vendôme 75001 Paris, France, authorized by the Bundesanstaltfür Finanzdienstleistungsaufsicht(BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB) under code 842 422 972; J.P. Morgan SE—Paris Branch is also supervised by the French banking authorities the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF). 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., 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.

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.

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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. Insurance products 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 for key important J.P. Morgan Private Bank information 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

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