FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION. J.P. Morgan Asset Management Emerging Markets Investment Range

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1 FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION J.P. Morgan Asset Management Emerging Markets Investment Range

2 The virtuous circle of emerging market prosperity J.P. MORGAN S VIEW Investing in emerging markets, both equities and debt, can help boost riskadjusted returns, bringing powerful diversification benefits to all investment portfolios. RICHARD TITHERINGTON Chief Investment Officer, Emerging Market Equities GLOBAL GROWTH IS UNDERGOING A TRANSFORMATIONAL CHANGE, WITH MOMENTUM SHIFTING TOWARDS EMERGING MARKETS. are catching up, fast Across the emerging world, people are moving to the cities to seek higher standards of living. They are becoming part of a fast growing middle class, benefiting from higher wages, better healthcare and education, and forming a new class of urban-dwelling, sophisticated consumers. As a result of this rapid economic development, the growth of many emerging market (EM) economies is outstripping the rest of the world. According to the International Monetary Fund (IMF), 2013 was the first year in which emerging markets accounted for more than half of world GDP on a purchasing power basis. In the four years to 2013, emerging markets contributed just over half (51%) of total global GDP growth. In the next four years, from 2014 to 2017, that contribution is expected to grow to 57% 1. are driving global economic growth CONTRIBUTION TO GLOBAL GDP GROWTH 6 % 3 0 Global economic growth EM growth DM growth -3 '80 '84 '88 '92 '96 '00 '04 '08 '12 Source: IMF World Economic Outlook April 2014, J.P. Morgan Asset Management. Forecast for 2014 from the IMF World Economic Outlook April Data as at 30 June Improvements in corporate governance used to have a reputation for higher political risks and lower standards of corporate governance in the form of less-developed legal structures, excessive government involvement and a more flexible regulatory environment than their developed market counterparts. While close monitoring of both issues continues to be essential, investors can be encouraged by the progress that a number of EM countries have made in these areas in recent years. South Korea and Taiwan are frequently assessed for potential upgrade to developed market status, while financial centres in cities such as Beijing, Mumbai and Sao Paulo are starting to become serious competitors to London, Frankfurt and New York. 1 Source: International Monetary Fund World Economic Outlook, April FOLLOW THE WORLD S FASTEST GROWING MARKETS

3 The recoupling of emerging markets THE RECOVERY IN DEVELOPED MARKETS IS A RENEWED CATALYST FOR EM GROWTH. Emerging and developed markets remain intertwined Economic growth in emerging markets sharply improved after the financial crisis of 2008/09. The subsequent boom in 2010 gave rise to some of the inflationary pressures recently experienced by emerging markets. Since then we have seen a deceleration in EM growth and a drop in growth expectations. While EM growth expectations have decelerated, growth expectations for developed markets have improved. This decoupling between emerging markets and developed markets is the primary culprit behind the recent slowdown in EM profits and the decline in relative market performance. However, the relationship between developed and emerging markets continues to be mutually dependent. The current re-acceleration in developed market (DM) economies should therefore spur further EM expansion, with the recoupling of emerging and developed markets beneficial for both. An allocation to emerging markets remains crucial to long-term returns EM economies are already a significant contributor to the global economy, making up nearly 40% of world GDP in The recovery in developed markets and the recoupling of EM with DM growth should be a considerable plus point for EM economies in general, and for EM investors in particular. Nevertheless, many European investors continue to run underweight positions in both EM equities and debt. Given the generally supportive long-term economic and market backdrop, the question is not whether investors should be increasing their EM allocations, but how. Portfolio allocations do not reflect the growing importance of emerging markets to the global economy SHARE OF GLOBAL GDP 38% Emerging Markets 21% Europe ex UK 3% UK 8% Other developed 7% Japan 23% United States Source: IMF World Economic Outlook April 2014, J.P. Morgan Asset Management. Based on nominal GDP, Data as at 30 June 2014.

4 The case for investing in emerging markets INVESTORS CAN CAPTURE EM OPPORTUNITIES VIA EQUITY, DEBT, AND MULTI-ASSET FUNDS. Emerging market equities for growth and income EM companies are ideally placed to take advantage of stronger EM growth, gaining from several developments including rising consumer demand and access to larger export markets. As EM profits grow, more money is being returned to shareholders through rising dividends. EM dividend growth has outpaced developed markets in recent years, creating significant opportunities for equity income investors looking to diversify outside of the UK. Finally, new equity supply has contributed to a significant expansion of the investment universe, from just 503 companies in 2003 to 2,047 today 2. The equity universe has steadily expanded NUMBER OF COMPANIES 2,500 ADV > 2m ADV > 5m ADV > 10m ADV > 50m 2,000 1,500 1, '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Emerging market debt EM debt offers access to a wide range of sovereign and corporate issuers, and securities denominated in local currencies and US dollars. EM sovereigns and companies are increasingly able to issue local currency debt thanks to improved government finances and stronger credit ratings. The result has been a rapid expansion in EM debt opportunities as of July 2014 there are 749 EM corporate issuers and 1,737 securities in total, up from just 145 issuers and 254 securities in January EM debt therefore provides strong and liquid opportunities to achieve a higher income yield and boost portfolio diversification. Source: Factset, Bloomberg. Data as at 28th February ADV - average daily volume. Emerging market debt outstanding $ TRILLION EM corporate (USD) EM sovereign (USD) EM sovereigns (local currency) 2Q Source: J.P. Morgan Asset Management. EM Sovereign in USD is the JPMorgan EMBI Global Index. EM corporate is the CEMBI. Data as at 30 June Multi asset emerging market funds For investors seeking to capitalise on opportunities in EM equities and debt, a multi-asset fund provides access to professional asset allocation. Broadening the emerging market opportunity set by combining both equity and debt in one portfolio can potentially deliver a stable source of income and superior risk-adjusted returns over the long-term. The result is ample choice for informed investors who wish to build diversified portfolios focused on long-term capital growth and income. 2 Based on $2m average daily trading volume. Source: Factset, Bloomberg. Data as at 28th February Source: Bank of America Meryll Lynch Emerging Markets Corporate Plus Index as at July J.P. MORGAN ASSET MANAGEMENT

5 The importance of global resources OUR EM EQUITY AND EM DEBT INVESTMENT TEAMS SHARE INSIGHTS INTO COUNTRIES, SECTORS AND COMPANIES. Local expertise is crucial in emerging markets At J.P. Morgan Asset Management, we believe opportunities in emerging markets are best exploited through local knowledge. Only an experienced manager with real depth and breadth of research coverage has the ability to identify the companies offering the best long-term growth potential and the debt issuers with the strongest credit quality. J.P. MORGAN S VIEW For investors, the transformational change in EM economies is presenting compelling long-term investment opportunities that cannot be ignored. PIERRE-YVES BAREAU Chief Investment Officer, Emerging Market Debt. Our experienced EM equity portfolio managers ensure only the very best ideas of our analysts make it into our funds. Meanwhile, our EM debt team has developed an investment process that draws on a highly successful combination of quantitative analysis, fundamental / qualitative research and technical analysis to uncover the most attractive securities and strongest issuers. J.P. Morgan Asset Management in emerging markets INVESTMENT CENTRES 100 TEAM MEMBERS London: 35 (12 EMD, 23 EME) New York: 14 (8 EMD, 6 EME) Tokyo: 10 PRG Hong Kong: 28 (5 EMD, 23 PRG) Singapore: 13 (6 EME, 7 PRG) LOCAL OFFICES 35 TEAM MEMBERS Sao Paulo: 10 (6 EMD, 4 EME) Mumbai: 7 (3 EMD, 4 PRG) Taipei: 14 (2 EMD, 12 PRG) Shanghai: 1 EMD Seoul: 3 PRG Investment Centres Local Offices Emerging Market Countries Developed Market Countries EMD = EMERGING MARKETS DEBT EME = EMERGING MARKETS EQUITY PRG = PACIFIC REGIONAL GROUP Launch of EM strategies Japan Asia Equity ASEAN Equity India Equity Global EM Equity Latin America Equity EM Bond Eastern Europe Equity China Equity EM Debt Global Emerging Markets (GEM) Discovery GEM Opportunities China A-share Equity EM Local Currency Debt Africa Equity Em Corporate Debt GEM Income Total EM EM Strategic Bond Re-launch of Asia Pacific Income As at end April There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset Management or that the past performance or success of any such professional serves as an indicator of such professional s future performance or success. J.P. MORGAN ASSET MANAGEMENT

6 A true leader in emerging markets investing J.P. MORGAN ASSET MANAGEMENT DISTINGUISHES ITSELF BY THE QUALITY OF ITS INVESTMENT PROFESSIONALS AND DEPTH OF GLOBAL COVERAGE. Widely considered one of the pioneers of emerging markets investing, J.P. Morgan Asset Management launched its first emerging market equity fund back in 1971, 15 years before the asset class got its name. We were also at the forefront of investing in emerging market debt, launching the JPMorgan Funds Emerging Markets Bond Fund in Our emerging market funds, developed over a long history of emerging markets investing, are designed to meet a wide range of investor needs from broad equity funds offering growth and income to single country funds, and from external to local currency debt funds, covering both sovereign and corporate markets. equity funds income range multi asset funds debt funds Emerging Markets Fund* Emerging Markets Investment Trust 1 Emerging Market Opportunities Fund** Emerging Markets Income Fund* Global Emerging Markets Income Trust 1 Emerging Market Dividend Fund** Total Emerging Markets Income Fund** Emerging Market Corporate Bond Fund** Emerging Market Local Currency Debt Fund** Emerging Market Strategic Bond Fund** Emerging Markets Equity Fund** Emerging Markets Small Cap Fund** *These funds are part of the UK domiciled OEIC JPMorgan ICVC. 1 Part of the J.P. Morgan Investment Trust range. **These fund are part of the Luxembourg domiciled SICAV JPMorgan Funds. NEXT STEPS For further information about any of our EM investment range, visit or call FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY NOT FOR RETAIL USE OR DISTRIBUTION. This is a promotional document and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest there to. 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 J.P. 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 J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management s 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 product(s) or underlying overseas investments. Both past performance and yield may not be a reliable guide to future performance. 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 product(s), there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co and its affiliates worldwide. You should note that if you contact J.P. Morgan Asset Management by telephone those lines may be recorded and monitored for legal, security and training purposes. You should also take note that information and data from communications with you will be collected, stored and processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy Policy which can be accessed through the following website As the product may not be authorised 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 product(s). Shares or other interests 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), Investment Trust Profiles and Key Features and Terms and Conditions, copies of which can be obtained free of charge from JPMorgan Asset Management Marketing Limited. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: Registered address: 25 Bank St, Canary Wharf, London E14 5JP. LV JPM /14