Now newly enhanced new functionality, new analytics, more intuitive design

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1 TARGET DATE COMPASS SM EVALUATE AND SELECT TARGET DATE FUNDS WITH GREATER KNOWLEDGE AND CONFIDENCE SM Now newly enhanced new functionality, new analytics, more intuitive design

2 Target date funds have quickly become the most popular qualified default investment alternative (QDIA). Evaluating this evolving universe of funds can be a challenge for many plan sponsors because of the considerable differences among funds even those with the same target date. IN A WORLD OF EVOLVING TARGET DATE FUNDS, TARGET DATE COMPASS HELPS POINT YOU IN THE RIGHT DIRECTION. The groundbreaking introduction of Target Date Compass SM in 2008 by J.P. Morgan revolutionized the target date fund evaluation process. This first-of-its-kind tool established a new benchmark for the evaluation and selection of target date funds, helping financial advisors and plan sponsors compare funds in an objective, documented and repeatable way.

3 Why the need for a leading evaluation tool? THE USE OF TARGET DATE FUNDS CONTINUES TO GROW and now represents 70% of net flows 1 into defined contribution (DC) plans as the QDIA of choice. At the same time, research shows that 32% of plan sponsors do not fully understand the methodology used to construct their target date funds. 2 Because ERISA holds plan fiduciaries legally responsible for prudently selecting and monitoring their QDIA, the need for a premier evaluation tool has never been greater. Target Date Compass SM makes the comparisons easy. Plan decision makers simply answer the tool s five key questions and are mapped onto one of four Target Date Type SM quadrants. Once there, they can compare the funds that match their type and review a detailed report of comparative analytics. 32% of plan sponsors do not understand how their target date funds are constructed 100% are legally responsible for prudent QDIA selection THE BENEFITS OF TARGET DATE COMPASS SM Provides unbiased analytics for evaluating target date funds Helps plan sponsors make prudent, defendable QDIA choices Assists in identifying a target date fund that best aligns with the plan s goals Helps plan sponsors fulfill their fiduciary responsibilities Facilitates important discussions about plan objectives, risk tolerance, demographics and anticipated participant behaviors 1 Callan Investments Institute: DC Observer, Third Quarter J.P. Morgan Plan Sponsor Research 2013.

4 Target Date Compass SM provides an objective, documented and repeatable process. AT THE HEART OF TARGET DATE COMPASS SM is the Compass Quadrant Map. It classifies funds with similar investment orientations into four Target Date Type quadrants using two important characteristics: level of equity exposure at the target date and level of asset class diversification. Determining a plan s Target Date Type begins with a simple questionnaire. Plan decision makers answer five key questions based on the following factors to assess the level of equity exposure at the target date and asset class diversification desired in the plan: Plan goals Participants investment behaviors Approach to risk management Role of diversification Asset class preferences Plan sponsors and advisors are encouraged to regularly run the analysis to ensure that a plan s target date fund continues to align with plan objectives. DISCOVERY COMPLETE QUESTIONNAIRE DUE DILIGENCE MONITOR STRATEGIES DETERMINE TARGET DATE TYPE IDENTIFICATION TARGET DATE STRATEGIES ALIGNED TO MEET PLAN GOALS ANALYSIS COMPARE AND SELECT STRATEGIES Answers are scored to determine which Target Date Type (quadrant) best matches the goals and needs of the plan. Northwest Quadrant Northeast Quadrant Southwest Quadrant Southeast Quadrant Funds that match the plan s type are then compared using the Target Date Compass Analysis Report, and a strategy can then be selected based on the funds appropriateness for plan goals.

5 The Target Date Compass SM Analysis Report provides a detailed, unbiased comparison of your chosen funds. TARGET DATE COMPASS SM DELIVERS the objective comparisons plan sponsors need to make informed QDIA decisions. Using simple charts and streamlined content, it presents a detailed analysis of the target date funds decision makers want to compare. Reports can be customized to specific requirements. And, Target Date Compass can now be accessed on a tablet for easier access on the go. ROBUST ANALYTICS TO SUPPORT YOUR CONVERSATIONS REPORT PAGE NAME DESCRIPTION VALUE TO PLAN SPONSOR COMPASS QUADRANT MAP ASSET CLASS SUMMARY EQUITY GLIDE PATH SUMMARY Plots chosen funds on the appropriate quadrants Shows asset class exposures of each compared strategy Compares the percent of equities in each fund as it approaches the target date and beyond Presents mutual fund assets, glide path data and other fund structure information for each fund Illustrates which strategies most closely align with a plan s goals and objectives Provides insight into diversification of each strategy Helps align the right strategy with the plan s goals Provides a comprehensive picture of the funds overall size and structure CALENDAR YEAR PERFORMANCE Compares total return for multiple calendar years Shows consistency of strategy from year to year PERFORMANCE & RANKINGS GROWTH OF $10K RISK/RETURN COMPARISON RISK/RETURN STATISTICS Compares total return for 3-month, 1-year, 5-year and 10-year periods Shows the growth of $10,000 for the 2020, 2030 and 2040 funds of each compared strategy Compares the 3- and 5-year risk/return of the chosen strategies for 2020, 2030 and 2040 funds Analyzes 3- and 5-year total returns, standard deviation, Sharpe ratio and information ratio Provides confidence in the strategy s ability to deliver returns Provides a tangible illustration of the strategy s growth potential Allows plan sponsors to choose a strategy that best meets their tolerance for risk Provides a broader set of risk metrics FEE SUMMARY Compares both net and gross expense ratios Makes price comparisons quick and easy

6 An insightful approach to target date fund evaluation Plan sponsors face the critical responsibility of making target date fund decisions that will directly impact the retirement savings of plan participants. In a world of ever-evolving target date fund strategies, making such prudent decisions is not only a challenge, it is also a legal requirement. Target Date Compass SM provides the insightful approach and documented process needed to evaluate the target date fund universe. Using the program s rich metrics and easy comparisons, plan decision makers, working with their advisors, can quickly choose the funds most aligned with their goals, confidently fulfill their fiduciary responsibilities and make the best strategic choices for their participants. REGULARLY UPDATED, THIRD-PARTY DATA ENSURES OBJECTIVITY While Target Date Compass is powered by J.P. Morgan, all data for fund comparisons is populated by Morningstar, one of the most trusted providers of independent investment research. Data and calculations used to determine each company s target date fund placement on the Compass Quadrant Map are updated on a quarterly basis. NAVIGATE THE TARGET DATE FUND UNIVERSE WITH THE PROGRAM THAT PUT OBJECTIVE ASSESSMENT ON THE MAP. Contact your J.P. Morgan representative to learn more about how Target Date Compass can help inform, support and elevate your clients QDIA decision-making process.

7 TARGET DATE FUNDS: Target date funds are funds with the target date being the approximate date when investors plan to start withdrawing their money. Generally, the asset allocation of each fund will change on an annual basis, with the asset allocation becoming more conservative as the fund nears the target retirement date. The principal value of the fund(s) is not guaranteed at any time, including at the target date. Certain underlying funds of target date funds may have unique risks associated with investments in foreign/emerging market securities and/or fixed income instruments. International investing involves increased risk and volatility due to currency exchange rate changes, political, social or economic instability and accounting or other financial standards differences. Fixed income securities generally decline in price when interest rates rise. Real estate funds may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector, including, but not limited to, declines in the value of real estate, risk related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by the borrower. The fund may invest in futures contracts and other derivatives. This may make the fund more volatile. The gross expense ratio of the fund includes the estimated fees and expenses of the underlying funds. A fund of funds is normally best suited for long-term investors. IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC. J.P. Morgan Asset Management is the marketing name for the investment management businesses of JPMorgan Chase & Co. and its affiliates worldwide. Copyright 2014 JPMorgan Chase & Co. All rights reserved. Any and all information set forth herein and pertaining to the Target Date Compass and all related technology, documentation and know-how ( information ) is proprietary to JPMorgan Chase Bank, N.A. ( JPM ). U.S. Patents No. 8,255,308; 8,386,361 and patent(s) pending. RI-COMPASS ADV 0414