9/30/81: 15.84% Real yield average: 2.46% Real 10-year Treasury yield 12/31/15: 0.25% -5%

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1 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE INVESTMENT INSIGHTS Building better fixed income portfolios 1Q 2016 PLEASE VISIT jpmorganfunds.com for access to all of our Insights publications. Get more from your fixed income portfolio Interest rates are near their 60-year lows. rates and real yields (i.e., yields after inflation) on some fixed income investments are close to zero. For both institutional and individual investors, asset allocation remains a primary driver of investment returns. Even in a low rate environment, bonds provide needed income and can reduce overall portfolio volatility. Nevertheless, low rates, global uncertainty and the potential for inflation create challenges for fixed income investors: Producing enough income Hedging against possible losses if bond rates rise Combating the erosion of purchasing power over time 1Q 2016 Appropriately diversified fixed income investors can access total return opportunities while maintaining the income potential and diversification benefits that bonds have historically provided. 20% 9/30/81: 15.84% 15% 10% 5% Nominal yield average: 6.23% Nominal 10-year Treasury yield 12/31/15: 2.27% 0% Real yield average: 2.46% Real 10-year Treasury yield 12/31/15: 0.25% -5% Source: Federal Reserve, BLS, J.P. Morgan Asset Management. Data as of 12/31/15. For illustrative purposes only. Past performance is not indicative of future returns. Real 10-year Treasury yields are calculated as the daily Treasury yield less year-over-year core inflation for that month except for June 2015, where real yields are calculated by subtracting out May 2015 year-over-year core inflation. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Investments in fixed income securities are subject to interest rate risk. If rates increase, the value of the investment generally declines.

2 INVESTMENT INSIGHTS THE IMPACT OF RISING RATES CAN VARY GREATLY While bonds will likely be adversely impacted by rising rates, the impact won t be uniform across all bond types. Different bond market sectors, structures and maturities respond differently to changing interest rates. For example, high-yield bonds tend to be less sensitive to rates than U.S. Treasuries. The same is true for shorter-term bonds. That s why diversification can help manage risk and reduce the overall impact rising rates might have on your bond portfolio. PRICE IMPACT OF A 1% MOVE IN INTEREST RATES -2.0% 2.0% 2 year UST 5.2% 4.9% -4.5% -4.7% 5 year UST TIPS -8.5% 9.4% 10 year UST -0.1% 0.1% Floating rate 4.3% U.S. HY 5.8% 5.7% -4.3% -5.2% -5.6% -5.3% EMD ($) U.S. Aggregate 3.7% 2.8% MBS -2.7% 1-5 year Munis -4.8% 4.6% 1-15 year Munis 8.8% -10.7% Muni HY KEY +1% -1% Source: U.S. Treasury, Capital, FactSet, J.P. Morgan Asset Management. Fixed income sectors shown above are provided by Capital and are represented by U.S. Aggregate; TIPS: U.S. Treasury Inflation Protected Notes (TIPS); Floating Rate: FRN (BBB); High Yield: Corporate High Yield Index; EMD ($): Emerging Markets (USD); MBS: MBS Index; Municipals: U.S. 1-5 Year Blend (1-6) Municipal Bond Index, U.S Blend (1-17) Municipal Bond Index, Municipal High Yield Index. Data as of 12/31/15. This chart is for illustrative purposes only. UNCORRELATED ASSETS CAN IMPROVE PORTFOLIO RETURNS AND LOWER VOLATILITY Core bonds both taxable and tax-exempt have typically had little or no correlation to major equity markets. That is, equity and bond prices have tended not to move in the same direction at the same time. In addition, core bonds have historically been less volatile than stocks. All other things being equal, lower volatility in and of itself can improve overall portfolio returns. As a result, combining a broad mix of stocks with strategically diversified fixed income investments can improve a portfolio s balance of return opportunity and expected risk. High-quality bonds have negative correlations to equities CORRELATION TO THE S&P S&P BC Muni 1 17 BC Agg BC US Treasury BC EMD BC US HY Commodity Index Source: Standard & Poor s, Capital Inc., MSCI Inc., DJ UBS, J.P. Morgan Asset Management. Data as of 12/31/15. Correlation to Core Bonds as represented by the U.S. Aggregate Index. Indexes used: U.S. Equities: S&P 500 Index; Corporate High Yield: Corporate High Yield; EMD: Capital Emerging Market Index; Municipal Bonds: Blend 1-15 Year (1-17 Y); TIPS: U.S. Treasury Inflation Protected Notes (TIPS); Treasuries: U.S. Treasuries. All correlation coefficients calculated based on monthly total return data for period 12/31/03 to 12/31/15. This chart is for illustrative purposes only. 2 ALLOCATION SOLUTIONS EVOLVING YOUR FIXED INCOME STRATEGY

3 DIVERSIFICATION MAY HELP REDUCE RISK AND PROVIDES ACCESS TO BROADER OPPORTUNITIES The performance of individual fixed income sectors can be volatile. As with stocks, a portfolio concentrated in one specific bond sector can lead to a bumpy ride. Diversification helps lower portfolio volatility and can reduce the impact of credit, rate and other risks. By allowing access to broader opportunities, diversification can also increase income and improve portfolio performance. For example, a diversified portfolio outperformed taxable core bonds over the past 10 years. Fixed income sector returns GTM U.S. INVESTORS CAN BENEFIT FROM DIVERSIFICATION WITHIN FIXED INCOME Cum. Ann. 39 EMD USD EMD LCL. EMD LCL. Treas. High Yield EMD LCL. TIPS EMD USD High Yield Muni Muni EMD USD EMD USD 10.2% 15.2% 18.1% 13.7% 58.2% 15.7% 13.6% 17.4% 7.4% 8.7% 3.8% 114.0% 7.9% EMD LCL. High Yield TIPS MBS EMD USD High Yield Muni EMD LCL. MBS Corp. MBS High Yield High Yield Fixed income 6.3% 11.8% 11.6% 8.3% 29.8% 15.1% 12.3% 16.8% -1.4% 7.5% 1.5% 101.3% 7.2% Asset EMD USD Treas. EMD LCL. EMD USD Treas. High Yield Corp. EMD USD EMD USD Muni Muni Alloc. Agg 3.1% 9.9% 9.0% 5.2% 22.0% 12.2% 9.8% 15.8% -1.5% 7.4% 1.2% 70.6% 5.5% Asset Asset TIPS Muni Corp. Corp. Corp. Corp. MBS Treas. Corp. Corp. Alloc. Agg Alloc. 2.8% 5.7% 7.0% 1.5% 18.7% 9.0% 8.1% 9.8% -1.9% 6.1% 0.8% 70.2% 5.5% Asset Asset Asset Asset Asset Asset Asset Treas. MBS MBS Alloc. Alloc. Alloc. Alloc. Alloc. Agg Agg Agg Alloc. Alloc. 2.8% 5.2% 6.9% 0.1% 14.7% 7.9% 8.1% 7.4% -2.0% 6.0% 0.5% 69.4% 5.4% Asset Asset Asset Muni Muni TIPS TIPS TIPS Muni EMD LCL. EMD LCL. Alloc. Agg Agg Alloc. Alloc. 2.7% 4.7% 6.7% -2.4% 11.4% 6.5% 7.8% 7.0% -2.2% 5.5% -0.3% 62.0% 4.9% High Yield Agg EMD USD Corp. Muni TIPS EMD USD Muni Treas. Treas. Corp. MBS MBS 2.7% 4.3% 6.2% -4.9% 9.9% 6.3% 7.3% 5.7% -2.7% 5.1% -0.7% 61.4% 4.9% MBS Corp. Corp. EMD LCL. Treas. MBS EMD USD TIPS TIPS Agg Agg Agg Agg 2.6% 4.3% 4.6% -5.2% 5.9% 5.9% 6.2% 4.2% -5.3% 3.6% -1.4% 59.3% 4.8% Agg Treas. Muni EMD USD MBS MBS High Yield MBS TIPS High Yield High Yield Treas. Treas. 2.4% 3.1% 4.3% -12.0% 5.9% 5.4% 5.0% 2.6% -8.6% 2.5% -4.5% 54.8% 4.5% Corp. TIPS High Yield High Yield Treas. Muni EMD LCL. Treas. EMD LCL. EMD LCL. EMD LCL. TIPS TIPS 9 1.7% 0.4% 1.9% -26.2% -3.6% 4.0% -1.8% 2.0% -9.0% -5.7% -14.9% 51.2% 4.2% Source: Capital, FactSet, J.P. Morgan Global Economic Research, J.P. Morgan Asset Management. Source: Past performance Capital, is not FactSet, indicative J.P. of Morgan future returns. Global Economic Fixed income Research, sectors J.P. Morgan shown above Asset Management. are provided by Capital unless otherwise noted and Past are represented performance by is not Broad indicative Market: of future returns. Capital Fixed U.S. income Aggregate sectors Index; shown MBS: above Fixed are Rate provided MBS by Index; Corporate: Capital unless U.S. Corporates; otherwise noted Municipals: and are represented by Broad Market: Muni Bond Capital 10-Year U.S. Aggregate Index; High Index; Yield: MBS: U.S. Fixed Corporate Rate MBS High Index; Yield Corporate: Index; Treasuries: U.S. Corporates; Global Municipals: U.S. Treasury; Muni Bond TIPS: 10-Year Global Index; Inflation-Linked High Yield: - U.S. U.S. Corporate TIPs; High Yield Index; Emerging Debt USD: J.P. Morgan EMBIG Diversified Index; Emerging Debt LCL: J.P. Morgan EM Global Index. The Asset Allocation portfolio Treasuries: assumes the Global following U.S. Treasury; weights: TIPS: 20% Global in MBS, Inflation-Linked 20% in Corporate,15% - U.S. TIPs; in Emerging Municipals, Debt 5% USD: in J.P. Emerging Morgan Debt EMBIG USD, Diversified 5% in Emerging Index; Emerging Debt LCL, Debt 10% LCL: in J.P. Morgan EM Global Index. The High Asset Yield, Allocation 20% in Treasuries, portfolio assumes 5% in TIPS. the following Asset allocation weights: portfolio 20% in MBS, assumes 20% in annual Corporate, rebalancing. 15% Municipals, 5% in Emerging Debt USD, 5% in Emerging Debt LCL, 10% in High Yield, Guide 20% to the in Treasuries, Markets U.S. 5% in Data TIPS. are Asset as of allocation December portfolio 31, assumes annual rebalancing. Guide to the Markets U.S. Data are as of December 31, This commentary is intended solely to report on various investment views held by J.P. Morgan Asset Management. Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. These views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. The information is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Past performance is no guarantee of future results. Please note that investments in foreign markets are subject to special currency, political and economic risks. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. J.P. MORGAN ASSET MANAGEMENT 3

4 INVESTMENT INSIGHTS TAXABLE STRATEGY FIND THE APPROPRIATE MIX FOR YOUR FIXED INCOME PORTFOLIO Institutional investors tend to broadly diversify their fixed income portfolios. Individual investors, who have historically diversified their equity risk, also need to ensure that their fixed income investments are appropriately diversified. When considering the right mix of investments, it s important to: Think strategically about augmenting your core bond holdings with complements and extended sectors Adjust allocations to reflect your market and interest rate outlook Consider your goals and risk tolerances An appropriately diversified fixed income portfolio can potentially deliver better results and help investors achieve their goals with the right balance of market risk and opportunity. Core Core Complements Extended Core bonds provide income and diversification to stocks, but rising rates and low yields present challenges. Active management mitigates risk by selecting bonds with the optimal mix of yield and return potential versus credit risk and duration. Strategies that seek returns uncorrelated to traditional bond markets and/or benefit from the impact of inflation can hedge downside risk and reduce volatility. Extended sectors can provide income and the potential for returns but can also be volatile. Corporate high yield bonds and bank loans typically outperform during periods of rising rates and economic growth but require frequent evaluation. Global bonds provide additional diversification and access to growth. EXTENDED SECTORS Seeks income and total return Emerging markets CORE COMPLEMENTS Seeks reduced correlations to core holdings Sector-specific CORE HOLDINGS Seeks lower volatility and diversification to equities [Mortgage-backed, corporates, governments, etc.] High-quality -/short-term TOP-DOWN BOTTOM-UP Shown for illustrative purposes only. Because everyone s circumstances are unique, these models can provide a framework for discussion between you and your financial advisor. They should not be taken as one-size-fits-all investment advice. Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss. 4 ALLOCATION SOLUTIONS EVOLVING YOUR FIXED INCOME STRATEGY

5 PORTFOLIO ALLOCATIONS ARE DEPENDENT ON THE INTERACTION OF SEVERAL FACTORS Goals Interest rate and inflationary environment Risk tolerance Time horizon Are you seeking capital preservation, income or a combination of both? Will, when and how fast will rates change? How much risk are you willing to accept? Are you focused on the short term or long term? INTEREST RATE ENVIRONMENTS RANGE-BOUND SLOW RISE RAPID RISE GOALS CAPITAL PRESERVATION INCOME Extended 25 35% Complements 10 20% Core 50 60% Extended 20 30% Complements 10 20% Extended 30 40% Complements 15 25% Core 40 50% Extended 25 35% Complements 25 35% Extended 35 45% Complements 20 30% Core 30 40% Extended 25 35% Complements 45 55% Core 55 65% Core 35 45% Core 15 25% Shown for illustrative purposes only. Because everyone s circumstances are unique, these models can provide a framework for discussion between you and your financial advisor. They should not be taken as one-size-fits-all investment advice.

6 J.P. MORGAN FUNDS MAY ENHANCE TAXABLE FIXED INCOME PORTFOLIOS HIGH YIELD FUND A OHYAX SELECT OHYFX EMERGING MARKETS DEBT FUND A JEDAX SELECT JEMDX Designed to deliver high income from a portfolio of belowinvestment-grade securities. Invests primarily in a diversified portfolio of belowinvestment-grade debt securities. Dedicated team of credit analysts combines bottom-up security with rigorous credit-risk analysis and top-down insights on economic trends. Provides less interest rate sensitivity while navigating changing economic environments. Designed to deliver total return from a portfolio of emerging market debt instruments. Invests primarily in debt securities from emerging market issuers, denominated in local currencies. Seeks individual fixed income investments that should perform well over market cycles. Maintains duration similar to the JPM Emerging Markets Bond Index, and may hedge non-dollar investments back to USD through derivatives. FLOATING RATE INCOME FUND A JPHAX SELECT JPHSX GLOBAL BOND OPPORTUNITIES FUND A GBOAX SELECT GBOSX Designed to deliver positive returns with lower volatility than traditional bonds across all market environments. Seeks absolute returns regardless of market conditions by using an opportunistic, go-anywhere approach that includes long/short strategies. Dynamically shifts allocations across both traditional and alternative fixed income while managing duration and actively hedging. Low correlation to core bonds can reduce portfolio volatility. Global Designed to deliver total return and income from a global, diversified bond portfolio. Invests in bond and currencies sectors across developed and emerging markets without benchmark constraints. Combines insights from over 200 sector specialists with global perspectives to develop high-conviction ideas while actively managing risk. Dynamically shifts sector and duration exposure in response to changing market conditions. STRATEGIC INCOME OPPORTUNITIES FUND A JSOAX SELECT JSOSX UNCONSTRAINED DEBT FUND A JSIAX SELECT JSISX Designed to deliver current income and reduce interest rate sensitivity through a portfolio of floating-rate instruments. Invests primarily in below-investment-grade floating rate securities. Utilizes value-oriented, fundamental bottom-up credit analysis to identify opportunities across sectors, industries and structures. Disciplined approach to manage fluctuations in interest rates. Core complement Designed to deliver attractive returns while mitigating downside risk relative to traditional bond markets. Seeks attractive returns, with a focus on downside protection, by using a flexible approach that allows the fund to shift portfolio allocations in changing market conditions. Experienced management team combines local insights with global perspectives to develop high conviction ideas. Broad opportunity set and low correlation to core bonds can reduce portfolio volatility. INFLATION MANAGED BOND FUND A JIMAX SELECT JRBSX TOTAL RETURN FUND A JMTAX SELECT JMTSX Designed to deliver inflation-protected total return. Invests in a core portfolio of bonds in combination with inflation swaps. Actively manages inflation swaps and makes tactical trades to deliver returns. Complements traditional fixed income by offering positive return potential in a rising interest rate and inflationary environment. Designed to deliver high total return through investing in a wide range of debt securities. Invests in a wide range of debt securities with the potential to provide high total return over time. Employs a top-down, macro-driven approach to help mitigate risks of benchmark-constrained strategies. Selects investments by analyzing the performance potential of individual securities and different market sectors. CORE BOND FUND A PGBOX SELECT WOBDX CORE PLUS BOND FUND A ONIAX SELECT HLIPX Designed to deliver total return and income from a portfolio of investment-grade bonds. Invests primarily in a diversified portfolio of term, high-quality bonds. Leverages a team of dedicated credit analysts. Implement value-driven, bottom-up security selection process with an emphasis on risk management. Designed to deliver high income from a portfolio of investment-grade and non-investment-grade securities. Invests primarily in investment-grade bonds, with the flexibility to tactically invest in high-yield and foreign debt. Combines bottom-up security selection with dynamic sector allocation. Uses macro analysis to guide yield curve positioning, duration and portfolio risk. J.P. MORGAN ASSET MANAGEMENT 6

7 INVESTMENT INSIGHTS MUNICIPAL BOND STRATEGY FIND THE APPROPRIATE MIX FOR YOUR MUNICIPAL BONDS Tax-sensitive investors who include municipal bonds in their portfolios face an additional layer of challenges: Periods of demand-supply imbalance can put pressure on yields At the same time, illiquidity risk has risen as dealer support for municipal bonds has shrunk Public sector credits are under pressure; headline risk and downgrades can be costly Because municipal bonds are typically callable, their duration can increase dramatically when rates rise Nevertheless, a prudent asset allocation combined with disciplined and experienced active management can help municipal bond investors navigate risks, generate income and access opportunities. Core Core Complements Extended Higher-quality municipal bonds can lower volatility and hedge downside credit risk. Active management mitigates risk by selecting bonds with the optimal mix of yield and return potential versus credit risk and duration. Strategies that seek returns uncorrelated to traditional municipal bond markets and/or benefit from the impact of inflation can hedge downside risk and reduce volatility. Extended sectors can provide income and the potential for returns but can also be volatile. Municipal high-yield bonds are especially prone to duration extension (i.e., interest rate risk). Corporate high-yield markets are more liquid and can have comparable after-tax yields. EXTENDED SECTORS Seeks income and total return CORE COMPLEMENTS Seeks reduced correlations to core holdings CORE HOLDINGS Seeks lower volatility and diversification to equities High-quality National and/or state-specific Intermediate-/short-term Shown for illustrative purposes only. Because everyone s circumstances are unique, these models can provide a framework for discussion between you and your financial advisor. They should not be taken as one-size-fits-all investment advice. Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss. 7 ALLOCATION SOLUTIONS EVOLVING YOUR FIXED INCOME STRATEGY

8 MUNICIPAL BOND PORTFOLIO ALLOCATIONS ARE DEPENDENT ON THE INTERACTION OF THE SAME FACTORS Goals Interest rate and inflationary environment Risk tolerance Time horizon Are you seeking capital preservation, income or a combination of both? Will, when and how fast will rates change? How much risk are you willing to accept? Are you focused on the short term or long term? INTEREST RATE ENVIRONMENTS RANGE-BOUND SLOW RISE RAPID RISE GOALS CAPITAL PRESERVATION INCOME Extended 30 40% Complements 10 20% Core 45 55% Extended 20 30% Complements 15 25% Extended 30 40% Complements 20 30% Core 35 45% Extended 25 35% Complements 30 40% Extended 35 45% Complements 20 30% Core 30 40% Extended 25 35% Complements 50 60% Core 50 60% Core 30 40% Core 10 20% Shown for illustrative purposes only. Because everyone s circumstances are unique, these models can provide a framework for discussion between you and your financial advisor. They should not be taken as one-size-fits-all investment advice.

9 J.P. MORGAN FUNDS MAY ENHANCE MUNICIPAL FIXED INCOME PORTFOLIOS HIGH YIELD FUND A OHYAX SELECT OHYFX TAX FREE BOND FUND A PMBAX SELECT PRBIX Designed to deliver high income from a portfolio of belowinvestment-grade securities. Invests primarily in a diversified portfolio of belowinvestment-grade debt securities. Dedicated team of credit analysts combines bottom-up security with rigorous credit-risk analysis and top-down insights on economic trends. Provides less interest rate sensitivity while navigating changing economic environments. Designed to deliver high level of tax exempt income while maintaining stability of principal through a portfolio of municipal securities. Invests in investment-grade municipal securities across all maturities. Uses a value-oriented approach that combines credit research with extensive risk/reward analysis. Constructed as a core fixed income holding that helps to minimize tax liability while preserving capital. TAX AWARE REAL RETURN FUND A TXRAX SELECT TXRSX TAX AWARE INCOME OPPORTUNITIES FUND A JTAAX SELECT JTASX Designed to maximize after-tax returns while minimizing the potential impact of inflation. Primarily invests in a portfolio of tax-exempt municipal securities and actively manages inflation with inflation swaps and derivatives overlay. Low correlation to traditional municipal bonds can reduce portfolio volatility and offer positive returns in rising rate environments. Generally maintains an average weighted maturity between 3 and 10 years. Designed to deliver total return with lower volatility than traditional municipal bonds across all market environments. Seeks absolute returns regardless of market conditions by utilizing a tax-sensitive, opportunistic, go-anywhere approach. Dynamically shifts allocations to capitalize on inefficiencies in the municipal bond market while managing duration and actively hedging. Low correlation to core municipal bonds can reduce portfolio volatility. TAX AWARE HIGH INCOME FUND A JTIAX SELECT JTISX MUNICIPAL INCOME FUND A OTBAX SELECT HLTAX National Designed to deliver a high level of after-tax income through investing in a portfolio of primarily municipal securities. Invests in municipal bonds, including housing authorities mortgage securities. May invest in taxable securities which will generally be high yield or loan participations. Select securities based on extensive credit research and broad diversification. National Designed to deliver current income exempt from federal income taxes by investing primarily in a portfolio of municipal securities. Invests primarily in municipal securities. Conducts an extensive risk/reward analysis of such factors as income, interest rate risk, credit risk and the transaction s legal/technical structure. Generally maintains an average weighted maturity between three and 15 years. INTERMEDIATE TAX FREE BOND FUND A JITAX SELECT VSITX SHORT-INTERMEDIATE MUNICIPAL BOND FUND A OSTAX SELECT PGUIX National Designed to deliver monthly income (excluded from gross income) and capital preservation by investing in municipal bonds. Invests primarily in municipal bonds that protect after-tax investment value. Constructed as a core fixed income holding that helps minimize tax liability while producing higher income with lower volatility. Generally maintains an average weighted maturity between three and 10 years. National short-term Designed to deliver high level of tax-exempt current income with a focus on capital preservation through investing in a portfolio of investment-grade municipal bonds. Invests primarily in investment-grade municipal bonds that are exempt from federal income taxes. Selects individual securities following risk/reward evaluation of interest rate risk, credit risk, and the complex legal and technical structure of the transaction. Generally maintains an average weighted maturity between one and five years. J.P. MORGAN ASSET MANAGEMENT 9

10 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE INVESTMENT INSIGHTS RISKS ASSOCIATED WITH INVESTING IN MUTUAL FUNDS The following risks could cause the fund to lose money or perform more poorly than other investments. For more complete risk information, see the prospectus. JPMorgan Core Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. JPMorgan Core Plus Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. JPMorgan Emerging Markets Debt Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. International investing bears greater risk due to social, economic, regulatory and political instability in countries in emerging markets. This makes emerging market securities more volatile and less than liquid developed market securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns. JPMorgan High Yield Fund Securities rated below investment grade are considered high-yield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. JPMorgan Floating Rate Income Fund Securities rated below investment grade are considered highyield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. JPMorgan Global Bond Opportunities Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. International investing bears greater risk due to social, economic, regulatory and political instability in countries in emerging markets. This makes emerging market securities more volatile and less than liquid developed market securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns. JPMorgan Inflation Managed Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Unlike conventional bonds, the principal or interest of inflation-linked securities, such as TIPS, is adjusted periodically to a specific rate of inflation. These securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. JPMorgan Strategic Income Opportunities Fund Securities rated below investment grade are considered high-yield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. International investing bears greater risk due to social, economic, regulatory and political instability in countries in emerging markets. This makes emerging market securities more volatile and less than liquid developed market securities. Changes in exchange rates and differences in accounting and taxation policies outside the U.S. can also affect returns. JPMorgan Total Return Fund Securities rated below investment grade are considered highyield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. Investments in derivatives may be riskier than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment. JPMorgan Unconstrained Debt Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Securities rated below investment grade are considered high-yield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. JPMorgan Intermediate Tax Free Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Some investors may be subject to the Federal Alternative Minimum Tax and to certain state and local taxes. JPMorgan Municipal Income Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Some investors may be subject to the Federal Alternative Minimum Tax and to certain state and local taxes. JPMorgan Tax Aware High Income Fund Tax aware strategies may reduce the amount of an investor s taxable income but will not eliminate it. These strategies may require trade-offs that reduce pre-tax income. The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans. Securities rated below investment grade are considered high-yield, non-investment grade, below investment-grade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. JPMorgan Tax Aware Income Opportunities Fund Tax aware strategies may reduce the amount of an investor s taxable income but will not eliminate it. These strategies may require trade-offs that reduce pre-tax income. Securities rated below investment grade are considered high-yield, non-investment grade, below investmentgrade, or junk bonds. They generally are rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, they tend to carry greater risk. Investments in derivatives may be riskier than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment. JPMorgan Tax Aware Real Return Fund Tax-aware strategies may reduce the amount of an investor s taxable income but will not eliminate it. These strategies may require trade-offs that reduce pre-tax income. Unlike conventional bonds, the principal or interest of inflation-linked securities, such as TIPS, is adjusted periodically to a specific rate of inflation. These securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. JPMorgan Short-Intermediate Municipal Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Some investors may be subject to the Federal Alternative Minimum Tax and to certain state and local taxes. JPMorgan Tax Free Bond Fund Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops. Some investors may be subject to the Federal Alternative Minimum Tax and to certain state and local taxes. INVESTMENT RISK DESCRIPTIONS Fixed income securities are subject to interest rate risk. If rates increase, the value of the Funds investments generally declines. The risk of defaults is generally higher in the case of sub-prime mortgagerelated and asset-backed securities that include so-called sub-prime mortgages. The structure of some of these securities may be complex and there may be less available information than other types of debt securities. These securities that may or may not be guaranteed by governments and their agencies, supranational organizations, corporations, or banks. The value of these assets will be influenced by factors affecting the assets underlying such securities. During periods of declining asset values, the asset-backed securities may decline in value. Futures contracts, swaps, options and derivatives often create leverage, thereby causing the Fund to be more volatile than it would be if it had not used derivatives. and foreign/international securities involve special risks, including economic, political and currency instability especially in emerging markets. The Funds investments in emerging markets could lead to more volatility in the value of the Funds shares. The small size of securities markets and the low trading volume may lead to a lack of liquidity, which leads to increased volatility. may not provide adequate legal protection for private or foreign investment or private property. Securities rated below investment grade (i.e., high yield or junk bonds ) are generally rated in the fifth or lower rating categories of Standard & Poor s and Moody s Investors Service. Although these securities tend to provide higher yields than higher-rated securities, there is a greater risk that the Funds share prices will decline. Short sales: There is no guarantee that the use of long and short positions will succeed in limiting the Funds exposure to domestic stock market movements, capitalization, sector swings or other risk factors. Investment in a portfolio involved in long and short selling may have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling involves certain risks, including additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale positions. Investments in equity securities may rise or fall because of changes in the broad market or changes in a company s financial condition, sometimes rapidly or unpredictably. When the value of a fund s securities goes down, an investment in a fund decreases in value. The income from municipal securities is exempt from federal income tax. The risk of a municipal obligation generally depends on the financial and credit status of the issuer. For some investors, income may be subject to the Alternative Minimum Tax. Capital gains, if any, are federally taxable. Income may be subject to state and local taxes. Contact JPMorgan Distribution Services, Inc. at for a prospectus. Carefully consider the fund s objectives, risks, charges and expenses before investing. The prospectus contains this and other fund information. Read it carefully before investing. Past performance is no guarantee of future returns. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. 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. JPMorgan Chase & Co., February 2016 II-FIXINC-ALL