Our approach to mutual fund investment activities for private clients

For more than a century, JPMorgan has successfully focused on serving the complex needs of private clients. That legacy is rooted in our ability to concentrate on the challenges facing high net worth and ultra-high net worth individuals, families and business owners, including concentrated wealth, tax issues and family governance concerns.

As a result of generations of experience focused exclusively on managing our clients' money, JPMorgan today is one of the largest asset and wealth managers in the world with assets under supervision of $1.4 trillion and assets under management of $1.1 trillion.* JPMorgan Asset Management provides investment advisory services for the JPMorgan family of mutual funds.

Key to your success and ours
We believe our investment professionals are among the best in the industry—an accomplishment that stems from our intense emphasis on hiring and nurturing talent.Working directly with a JPMorgan investment professional, with support from a team of multidisciplinary professionals, affluent clients are presented with an investment portfolio designed to deliver risk-adjusted returns to help achieve their financial goals within the parameters of their risk tolerances.

We believe these risk-adjusted returns come from a combination of consistent, strong performance and prudent diversification among and within asset classes, managers and styles.

When JPMorgan has demonstrated expertise in a particular mutual fund asset class, we prefer to invest our clients' assets in these mutual funds because of the control, compliance and oversight inherent in being a part of the same firm.

However, when JPMorgan is unable to offer demonstrated expertise in an asset class, or when we seek manager diversification, we will choose a qualified external mutual fund manager. When considering an external manager, our own investment management expertise gives us a distinct advantage as we evaluate the manager's ability to generate the desired future risk-adjusted returns.

Focus on our total relationship
JPMorgan investment professionals are not paid on a commission basis. Instead, they receive a salary plus a discretionary bonus related to their performance in serving clients, their partnership with colleagues and the financial performance of the Asset Management business. Likewise, our Investment Strategy Team, which determines asset allocation and manager selection, receives compensation based on investment performance and not revenue targets.

As a result of this compensation formula, JPMorgan encourages its professionals to focus on our total relationship with clients, as opposed to individual product sales.

Integrity above all
Our reputation for integrity spans multiple generations. And our ability to balance the interests of our clients, our colleagues and our shareholders is unfaltering and first and foremost in our way of thinking.

As J.P. Morgan, Jr. said decades ago, "First-class business...in a first-class way."

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