James ElliotChief Investment Officer for Multi-Asset Solutions International and Portfolio Manager for the Global Macro strategy

JPMorgan Investment Funds ndash Global Macro Opportunities Fund

FOCUS ON THE BIGGER PICTURE

Macro investing Managing VolatilityIn February 2018 the JPMorgan Investment Funds ndash Global Macro Opportunities Fund was able to deliver a positive return even as global equity markets suffered heavy losses James Elliot the fundrsquos co-portfolio manager talks about the benefits of the fundrsquos flexibility and broad investment toolkit as we enter a period of potentially higher volatility

APRIL 2018

The return of volatility

Around 18 months ago we started to see a synchronised upswing in global growth supported by four pillars of strength the US Europe Japan and China It became clear that the US was moving into the late part of the economic cycle

The late cycle is typically characterised by strong economic growth robust consumer and business data and low unemployment However it also brings worries about inflation and rising interest rates and with them periods of market volatilitymdashas we saw in February

Benefiting from flexibility

In this environment the fundrsquos flexibility and ability to draw on an extended toolkit of traditional and non-traditional strategies are highly beneficial allowing us to continue to invest in strategies that can do well from the strong growth backdrop while managingmdashand even benefiting frommdashvolatility

In February 2018 for example Global Macro Opportunities Fund delivered a positive return despite sharp falls on equity markets and losses on bond markets as investors began to anticipate higher inflation

We adjusted our positioning in late January to take profit from some of our equity strategies and add to our protection strategies benefiting performance in February Our ability to invest in sophisticated strategies meant we could hold a position that would benefit if market volatility increased This position was the single biggest driver of the positive return in February

Positioning for uncertainty

Importantly the return of market volatility doesnrsquot mean we think the economic cycle is nearing its end nor does it mean that risk assets such as equities cannot continue to do well

We are expecting above-trend growth this year from economies around the world both developed and emerging In the US the growth outlook remains particularly strong and inflation is building albeit gradually We expect further rate rises this year from the Federal Reserve but global monetary policy overall remains very supportive

As a result we believe the environment remains positive for equities However we do expect these periods of uncertainty to become more familiar as the very factors that underpin equity market strength fuel worries about higher interest rates

We believe the dynamic nature of the fund and its ability to use sophisticated strategies to manage volatility mean it is well-positioned for this more turbulent investment landscape relative to traditional forms of investing such as equity fixed income and balanced strategies

The JPMorgan Investment Funds ndash Global Macro Opportunities Fund reflects high conviction macroeconomic themes in a focused flexible portfolio The value of investments and any income from them may go down as well as up and investors may not get back the full amount invested

View the fundrsquos strong five-year track record and find out more about the 8 macro themes in which it currently invests Past performance is not a reliable indicator of current and future results

Important information

This is a marketing communication and as such the views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto Reliance upon information in this material is at the sole discretion of the reader Any research in this document has been obtained and may have been acted upon by JP Morgan Asset Management for its own purpose The results of such research are being made available as additional information and do not necessarily reflect the views of JP Morgan Asset Management Any forecasts figures opinions statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated JP Morgan Asset Managementrsquos own at the date of this document They are considered to be reliable at the time of writing may not necessarily be all inclusive and are not guaranteed as to accuracy They may be subject to change without reference or notification to you It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested Changes in exchange rates may have an adverse effect on the value price or income of the products or underlying overseas investments Past performance and yield are not a reliable indicator of current and future results There is no guarantee that any forecast made will come to pass Furthermore whilst it is the intention to achieve the investment objective of the investment products there can be no assurance that those objectives will be met JP Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase amp Co and its affiliates worldwide To the extent permitted by applicable law we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal poli-cies Personal data will be collected stored and processed by JP Morgan Asset Management in accordance with our EMEA Privacy Policy wwwjpmorgancomjpmpdf1320694304816pdf As the product may not be authorized or its offering may be restricted in your jurisdiction it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction Prior to any application investors are advised to take all necessary legal regulatory and tax advice on the consequences of an investment in the products Shares or other inter-ests may not be offered to or purchased directly or indirectly by US persons All transactions should be based on the latest available Prospectus the Key Investor Information Document (KIID) and any applicable local offering document These documents together with the annual report semi-annual report and the articles of incorporation for the Luxembourg domiciled products are available free of charge upon request from JPMorgan Asset Management (Europe) Sagrave rl 6 route de Tregraveves L-2633 Senningerberg Grand Duchy of Luxembourg your financial adviser or your JP Morgan Asset Management regional contact In Switzerland JPMorgan Asset Management (Switzerland) LLC Dreikoumlnigstrasse 21 8002 Zurich acts as Swiss representative of the funds and JP Morgan (Suisse) SA 8 Rue de la Confeacutedeacuteration 1204 Geneva as paying agent of the funds

This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) Sagrave rl 6 route de Tregraveves L-2633 Senningerberg Grand Duchy of Luxembourg RCS Luxembourg B27900 corporate capital EUR 10000000 This communication is issued in the UK by JPMorgan Asset Management (UK) Limited which is authorised and regulated by the Financial Conduct Authority Registered in England No 01161446 Registered address 25 Bank Street Canary Wharf London E14 5JP

ECM material ID 0903c02a820d1b02

LVndashJPM51032 | 0418

Investment Objective

To achieve capital appreciation in excess of its cash benchmark by investing primarily in securities globally using financial derivative instruments where appropriate

Risk Profilebull The value of equity securities may go down as well as up in

response to the performance of individual companies and general market conditions

bull The fund may invest in China A-Shares through the Shanghai-Hong Kong Stock Connect program which is subject to regulatory change quota limitations and also operational constraints which may result in increased counterparty risk

bull The value of debt securities may change significantly depending on economic and interest rate conditions as well as the credit worthiness of the issuer Issuers of debt securities may fail to meet payment obligations or the credit rating of debt securities may be downgraded These risks are typically increased for emerging market and below investment grade debt securities

bull In addition emerging markets may also be subject to increased political regulatory and economic instability less developed custody and settlement practices poor transparency and greater financial risks Emerging market currencies may be subject to volatile price movements

bull Emerging market and below investment grade debt securities may also be subject to higher volatility and lower liquidity than non-emerging market and investment grade debt securities respectively

bull The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency

bull The value of securities in which the fund invests may be influenced by movements in commodity prices which can be very volatile

bull Convertible bonds are subject to the credit interest rate and market risks stated above associated with both debt and equity securities and to risks specific to convertible securities Convertible bonds may also be subject to lower liquidity than the underlying equity securities

bull The fund may be concentrated in and have net long or net short exposure to industry sectors markets andor currencies As a result the fund may be more volatile than more broadly diversified funds

bull The value of financial derivative instruments can be volatile This is because a small movement in the value of the underlying asset can cause a large movement in the value of the financial derivative instrument and therefore investment in such instruments may result in losses in excess of the amount invested by the fund

bull Some financial derivative instruments traded on an exchange may be illiquid and as a result may need to be held until the contract expires This may have an adverse impact on the return of the fund

bull The possible loss from taking a short position on an asset may be unlimited as there is no restriction on the price to which the asset may rise The short selling of investments may be subject to changes in regulations which could adversely impact returns to investors

bull Movements in currency exchange rates can adversely affect the return of your investment The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful