JPMorgan SmartRetirement SM

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1 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE JPMorgan SmartRetirement SM Target date strategies designed to address retirement investment realities

2 HELPING ADDRESS THE RETIREMENT CHALLENGES OF TODAY With people living and working longer than ever, the retirement of yesterday may no longer meet the reality of today, and retirement plans and investment solutions must keep pace. At J.P. Morgan, we offer a wide range of insights and tools to help defined contribution plan sponsors and advisors assist plan participants in achieving adequate levels of income in retirement. This includes new and powerful solutions backed by the resources of a global financial leader with more than 800 investment professionals and more than $1.7 trillion in assets. 1 CROSS-ASSET SOLUTIONS FROM J.P. MORGAN The Multi-Asset Solutions Group is part of the Global Investment Management Solutions Group, which oversees more than $135 billion in multi-asset solutions worldwide. 1 The Group leverages its specialized investment expertise, together with the vast resources of J.P. Morgan Asset Management and its partners and affiliates, to provide customized solutions across asset classes for institutions, third-party intermediaries and individuals. The Group blends its experience in capital markets investing, strategic and tactical asset allocation, portfolio construction and risk management with one of the industry s broadest product offerings to develop and implement optimal portfolio solutions for a wide range of client needs. 1 J.P. Morgan Asset Management, as of 9/30/14. J.P. MORGAN SMARTRETIREMENT SM TEAM NAMED 2014 MORNINGSTAR U.S. ALLOCATION FUND MANAGER OF THE YEAR. Morningstar Awards Morningstar, Inc. All Rights Reserved. The 2014 U.S. Allocation Fund Manager of the Year was awarded to the SmartRetirement team for the management of the JPMorgan SmartRetirement Target-date Series (Institutional Shares).

3 An integrated approach to target date designs At J.P. Morgan, the focus of our SmartRetirement Target Date strategies is on retirement outcomes helping as many participants as possible achieve the income-replacement levels they need to enjoy comfortable and secure post-employment lifestyles. We seek to achieve these outcomes with consistent performance through and across market cycles, using a four-pronged approach: Multi-faceted risk management: designed to help minimize the uncertainty of investing for a lifetime Strategic asset allocation: glide path design that incorporates a deep understanding of participant savings and investing behavior Manager selection: selection and monitoring of best-in-class managers and investment strategies, while keeping our outcome-oriented goals in sight Tactical asset allocation: flexibility to tactically deviate from the strategic asset allocation strategy when untapped opportunities and/or unanticipated risks present themselves. RISK MANAGEMENT Multi-faceted approach to risk management STRATEGIC ASSET ALLOCATION Participant behavior informs glide path design INTEGRATED EXECUTION Resources and flexibility to add/remove underlying managers MANAGER SELECTION Proven, disciplined and repeatable process of tactical asset allocation TACTICAL ASSET ALLOCATION J.P. MORGAN ASSET MANAGEMENT 1

4 RISK MANAGEMENT Helping to minimize the uncertainty of investing for a lifetime A DYNAMIC APPROACH TO RISK MANAGEMENT Over the course of their working lives, plan participants are exposed to a broad range of risks that may impact their ability to reach their retirement goals. In our opinion, the most prudent goal of a target date fund is to deliver safe levels of retirement income to as many participants as possible as they enter retirement. Market event, longevity, inflation and interest rate risk management are all important inputs for this goal, but they should be managed collectively through a dynamic risk management approach. The findings of our current research highlight a single conclusion: Dynamically managing risk across all stages of the glide path can enhance protection against the one risk that truly matters whether participants will be able to afford to retire. MARKET RISK Risk of drawdown as one approaches retirement Risk of outliving savings LONGEVITY RISK Participantexperienced risks EVENT RISK Risk of severe loss due to a single extreme market event Risk that value of principal will be eroded by inflation INFLATION RISK INTEREST RATE RISK Risk that fixed income securities will lose value if rates rise 2 TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

5 Strategic glide path design that begins with understanding participant behavior STRATEGIC ASSET ALLOCATION INPUTS TO STRATEGIC ASSET ALLOCATION Our strategic asset allocation process uses broad diversification to strengthen the risk/ reward profile of our portfolios throughout the entire glide path. Multiple inputs are incorporated in the design of the JPMorgan SmartRetirement glide path. Specifically, our strategic asset allocation process follows three key steps: ANALYZE: the investment implications of certain participant behaviors, such as saving and withdrawal patterns, on plan design REVIEW: long-term capital market return assumptions TEST: strategic asset allocation and glide path design across thousands of scenarios that simulate the effects of different market conditions BEHAVIORAL INSIGHTS AND ANALYSIS While many of the target date strategies used throughout the retirement industry have been built on common assumptions about participant behaviors, J.P. Morgan s strategies are created by applying research after analyzing more than 10 years of actual savings and investing habits of retirement plan participants. 1 COMMON TARGET DATE INDUSTRY ASSUMPTIONS PARTICIPANT BEHAVIOR FINDINGS 1 Participants get a raise every year. On average, participants get raises every other year. Contribution rates start at 6% and increase year by year, reaching 10% of salary by age 35. On average, contribution rates start at 5% and increase slowly, reaching 8% by age 44 and 10% not until age 59. Participants don t borrow from their 401(k) accounts. 19% of participants borrow, on average, 22% of their account balances. 100% of participants remain in the plan three years after retirement. Only 17% of participants remain in the plan three years after retirement. 1 J.P. Morgan Retirement Research Data, J.P. MORGAN ASSET MANAGEMENT 3

6 STRATEGIC ASSET ALLOCATION A dynamic approach to glide path design By carefully analyzing actual patterns in such areas as salary increases, contributions, loans and withdrawals, we are able to make better, more informed decisions about how the strategic asset allocation of our target date strategies may impact participants over their entire lives. For instance, we developed the glide path for each of the JPMorgan SmartRetirement strategies by carefully analyzing how three things asset class diversification, portfolio efficiency and risk exposure may impact participants retirement income security. And by continually revisiting our glide path assumptions to account for changes in participant behavior, capital markets and regulations, we are better able to position our funds to benefit from shifting conditions through and across market cycles PERCENTAGE OF PORTFOLIO ALLOCATION Longest time horizon (Through age 40) 90.5% exposure to high-risk/reward assets maximizes accumulation potential Broader diversification seeks to reduce expected volatility TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

7 Our glide path is continually reexamined; strategic or tactical changes are made based on changes in participant behavior or market conditions 65.5% 62.5% Bonds Stocks The middle years (Ages 41-65) Start reducing portfolio risk Accelerate risk reduction 5 10 years before retirement Begin shifting focus to liquidity and inflation risks At and in retirement (Age 66 and after) Fully diversified asset allocation seeks to maximize expected return for a relatively low level of risk Strategic asset allocation remains static 34.5% 37.5% Stocks Bonds AGE 65 J.P. MORGAN ASSET MANAGEMENT 5

8 MANAGER SELECTION An extensive toolbox to drive strong performance BEST-IN-CLASS STRATEGIES Members of J.P. Morgan s GIM Solutions Multi-Asset Solutions are responsible for identifying best-in-class strategies across each of the strategic asset classes used as part of the glide path for the JPMorgan SmartRetirement strategies. We employ a disciplined process to continually monitor our underlying holdings. Strategies are added and removed, not just based on performance, but also on our view of market opportunities and risks. Manager research helps the team identify suitable investment strategies and determines implementation and rebalancing parameters. MANAGER SELECTION Quantitative research allows for continuous in-depth analysis of global markets to seek to create optimal portfolios, taking into account a variety of market environments. Qualitative research seasoned investors provide insights to identify structural anomalies for opportunistic positioning during market shifts. 6 TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

9 Exploiting market inefficiencies to uncover new opportunities TACTICAL ASSET ALLOCATION UNTAPPED OPPORTUNITIES Market events may have an unexpected impact on portfolios. As a result, a portfolio manager may need to make tactical deviations from the strategic asset allocation to take advantage of particular opportunities and mitigate certain risks. In the last few years, JPMorgan SmartRetirement strategies have benefited from a number of market inefficiencies that have allowed for tactical deviations Overweighted the fixed income allocation to combat falling equity prices during the financial crisis Increased the allocation to high yield bonds to provide higher returns when credit markets were in flux Increased the allocation to U.S. and emerging market equities to take advantage of healthier global equity markets Focused on U.S. and international developed equities to take advantage of strong global equity markets JPMorgan SmartRetirement strategies have been widely recognized for their strong, consistent returns: Strong mutual fund track record, with four- or five-star overall ratings by Morningstar for the institutional share class of each of our 2015 to 2050 retirement year funds Consistently recognized by Morningstar as a top target date fund series Recipient of 2013 Lipper Fund Awards for delivering consistently strong, risk-adjusted performance JPMorgan SmartRetirement team awarded 2014 Morningstar U.S. Allocation Fund Manager of the Year INDUSTRY RECOGNITION J.P. MORGAN ASSET MANAGEMENT 7

10 A range of options to meet client needs STANDARD AND CUSTOM SOLUTIONS At J.P. Morgan, we offer both active and passive-blend packaged strategies, as well as glide path solutions that can be customized to meet the unique needs of our clients. PACKAGED GLIDE PATH Employ J.P. Morgan s proprietary glide path Leverage your plan s current investment managers MODIFIED GLIDE PATH Eliminate or add asset classes to J.P. Morgan s proprietary glide path Adjust the risk/reward parameters and/or end point Leverage your plan s current investment managers COMPLETE CUSTOMIZATION Design glide path to address specific plan demographics Specify risk/reward parameters Specify end point Leverage your plan s current investment managers Target date funds continue to grow as a popular default option for defined contribution plans. J.P. Morgan can help plan sponsors by guiding them through the selection process to determine the most appropriate solution for their plan. Our collective expertise in glide path design, portfolio construction, ongoing management and operations can help guide plan sponsors in choosing the target date strategy best aligned to their goals and objectives. 8 TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

11 A FULLY INTEGRATED TEAM STRUCTURE TO HELP DELIVER STRONGER SOLUTIONS Multi-Asset Solutions consist of experienced economic strategists, portfolio managers, research analysts and client service professionals. This dedicated team of multi-asset-class specialists covers all aspects of portfolio design and implementation through seamless integration across three key areas: qualitative research, quantitative research and manager research/portfolio construction. Anne Lester Managing Director Daniel Oldroyd Managing Director Michael Schoenhaut Managing Director Katherine Santiago Executive Director Eric Bernbaum Vice President Joined firm and industry in 1992 Joined firm and industry in 2000 Joined firm and industry in 1997 Joined firm and industry in 2005 Joined firm and industry in 2008 All portfolios are overseen by the Americas Chief Investment Officer, Jeff Geller. LEVERAGING J.P. MORGAN S VAST RESOURCES AND EXPERTISE Members of Multi-Asset Solutions benefit from real-time access to J.P. Morgan s global team of portfolio managers, research analysts and product specialists, each of whom provides informed investment management expertise and/or execution capabilities. With access to more than 220 investment strategies from traditional equity and bond funds to alternative investments the Multi-Asset Solutions team has an extensive tool box of resources and a range of underlying platforms, strategies, styles and processes. The Multi-Asset Solutions team has been committed to developing retirement multi asset solutions for plan sponsors for over 40 years. There can be no assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM 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 9

12 Communicating effectively to participants SMARTRETIREMENT COMMUNICATIONS Our SmartRetirement materials can help educate participants on four important topics: WHAT THEY ARE HOW THEY WORK WHO SHOULD INVEST HOW TO SELECT For many participants, the prospect of digesting investment information and choosing how to allocate their strategies across their plan s different investment options can be overwhelming. According to recent research from J.P. Morgan s Plan Participant Survey, almost three-quarters of respondents don t take the time to read all of the investment information that is provided. Participants may also struggle with taking it all in, with 45% of them saying they are getting more information than they can absorb. 1 J.P. Morgan has developed a unique suite of resources to help participants better understand the benefits of target date investing. Designed with a fresh, creative approach that builds on best practices in retirement communications, the easy-tounderstand design helps plan sponsors effectively educate participants. COMMUNICATIONS MATERIALS INCLUDE: Introducing the JPMorgan SmartRetirement Funds Target date funds designed with you in mind. WEBSITE: An animated glide path video describing what the funds are and how the glide path works Interactive buttons help participants select a fund based on their birth date Custom pages for each strategy so participants understand where they are today and where they are going PARTICIPANT PRESENTATION: An efficient and easy way to educate participants on the SmartRetirement strategies. 1 J.P. Morgan Plan Participant Survey Findings, TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

13 Guarantees *As of December 31, 2013 IMPROVED UNDERSTANDING Our program provides a variety of benefits for both plan sponsors and plan participants: Information can be leveraged to complement the existing communications efforts of any retirement plan Materials address the needs of the two main types of plan investors: delegators and do-it-yourselfers The program has the potential to increase the general level of participant understanding of target date funds over time Individuals who are defaulted into target date strategies can gain a better understanding of what they have been invested in JPMorgan SmartRetirement Funds AN INVESTMENT IN A SMARTRETIREMENT FUND DOES NOT GUARANTEE A SPECIFIC OUTCOME UPON REACHING THE TARGET DATE. A SHARES Target date funds designed with you in mind Each JPMorgan SmartRetirement Fund is a well-diversified, professionally managed, automatic investment option designed to care for all of your retirement plan assets. Each fund has a date in its name the fund s target date designed to be the approximate retirement year when withdrawals begin. For many people, that date is the year they turn 65. WELL DIVERSIFIED This team has dedicated itself to developing and implementing the mix of stocks and bonds that their research shows is most likely to By selecting a SmartRetirement Fund, you re automatically invested in help you get to retirement. more than 15 underlying funds. The two primary investments or asset classes are bonds and stocks. AUTOMATIC BONDS provide moderate long-term returns and lower potential overall risk than stocks. Commonly referred to as fixed income, Did you know that the younger you are, the more money you should bonds are loans by a corporation or government. have in stocks? And that the closer you are to retirement, the more you should have in bonds? Those simple investment principles require STOCKS have the highest long-term return potential and the investors to make changes in their investments over time. Investing in highest potential risk. Stocks represent ownership in a company. a SmartRetirement Fund means that the professionals are responsible How these two asset classes are combined is called asset allocation. for shifting from stocks to bonds as the fund approaches its target date. It s their job to make adjustments on a regular basis. PROFESSIONALLY MANAGED When you invest in a SmartRetirement Fund, you re tapping into the expertise of more than 90 investment professionals at J.P. Morgan.* EACH FUND AUTOMATICALLY CHANGES TO BECOME MORE CONSERVATIVE AS YOU APPROACH YOUR TARGET RETIREMENT DATE 100% Cash alternatives Treasury inflation protected 90% securities (TIPS) TARGET DATE 80% U.S. bonds High yield bonds 70% Emerging markets bonds 62.5% BONDS U.S. large cap stocks 60% 37.5% STOCKS U.S. small/mid cap stocks 50% Real Estate Investment Trusts (REITs) 40% International stocks 30% Emerging markets stocks Global natural resources 20% Commodities 10% 0% AGE ONE-PAGE PROFILE: Overview of the glide path asset allocation and management process Designed to couple with an initial or annual QDIA notice, which includes required information about the funds for participants Available for each share class Is Good, Good Enough? There are times in life when good will do. But when it comes to the important things, like family, health and our future, good just doesn t seem good enough. The same is true when it comes to investing for retirement. Doing better than good requires time and expertise. KNOW WHAT YEAR YOU TURN 65? BROCHURE: Introducing the JPMorgan SmartRetirement Funds Target date funds designed with you in mind. For investors who are short on time or expertise. Each fund is a well-diversified, professionally managed and automatic investment option designed to care for all of your retirement plan assets. Each fund has a date in its name the fund s target date designed to be the approximate retirement year when withdrawals begin. For many people, that date is the year they turn 65. YEAR YOU WERE BORN YEAR YOU WILL BE = Overview of the SmartRetirement strategies, how they work, who they may be right for and how to select the appropriate strategy Introducing two ways to invest ABC Company understands that planning and saving for your future is one of the best things you can do to ensure you re able to live the lifestyle you want in retirement. Therefore, an overarching goal of ours is to provide you with a retirement program that can help you better prepare. As part of this commitment, we continually look to enhance our program. We re excited to announce a change to the Plan s available investment options, which we believe will help simplify your retirement investment decisions. Effective January 1, 2014, the Plan will offer two ways to invest. Also, a series of target date retirement funds, the JPMorgan SmartRetirement Passive Blend Funds, will be added to the investment lineup. On January 31, 2014, your existing balances and future contributions will automatically transfer to the JPMorgan SmartRetirement Passive Blend Fund named for the year closest to when you turn 65 and may begin withdrawing from your account, unless you make a different investment election during the re-election window described to the right. The plan offers you two ways to invest simply choose the one that s right for you. If you would like your current account balance and future contributions invested in the new JPMorgan SmartRetirement Passive Blend Funds, there is nothing you need to do at this time. After the stock market closes on January 31, your current account balance and future contributions will automatically be invested in the JPMorgan SmartRetirement Passive Blend Fund dated closest to the year you turn age 65, unless you make a different investment election between January 1 and January 31. If you wish to choose different investments, you will need to log on to or call XXX-XXX-XXXX to make your selection before the end of the election period. The election period is between X a.m. Eastern time ( ET ) on January 1, 2014 and X ET on January 31, OPTION 1: DO-IT-FOR-ME Designed for people who want help with selecting their investment strategy and prefer to leave most of the ongoing investment decisions to experienced investment professionals. This approach consists of a series of target date funds JPMorgan SmartRetirement Passive Blend Funds. OPTION 2: DO-IT-YOURSELF Designed for people who want to take a more hands-on approach in selecting their own mix of funds. You choose any combination of the Plan s investment options. After you create your portfolio mix, be sure to monitor and make adjustments to your portfolio as your circumstances change. RE-ENROLLMENT NEWSLETTER: The tailored newsletter effectively explains to participants the two ways to invest: selecting target date funds or choosing to create a mix from the plan s core investment lineup J.P. MORGAN ASSET MANAGEMENT 11

14 Seeking a smoother, more dependable road to retirement J.P. Morgan s SmartRetirement Target Date strategies seek to provide security and comfort for plan sponsors and their participants. Our approach to target date investing seeks to provide a simplified way for participants to invest in well-diversified, professionally managed portfolios as they prepare for a financially secure retirement. We take a holistic, outcomes based approach to prioritizing and mitigating risk on the journey to retirement. SMARTRETIREMENT OBJECTIVE AND PHILOSOPHY To get the maximum number of participants to a comfortable income replacement level during retirement. * To have a fiduciary mindset and put clients first To seek to deliver a glide path with lower levels of volatility at retirement without sacrificing return To build and maintain a diversified portfolio to help increase the probability of successful outcomes *Model based on 70% - 80% income replacement during retirement For more information about JPMorgan SmartRetirement strategies, please contact your J.P. Morgan representative. The manager seeks to achieve the stated objective. There can be no guarantee the objective will be met. 12 TARGET DATE STRATEGIES DESIGNED TO ADDRESS RETIREMENT INVESTMENT REALITIES

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16 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE J.P. MORGAN ASSET MANAGEMENT 270 Park Avenue New York, NY Contact JPMorgan Distribution Services, Inc. at for a fund prospectus. You can also visit us at Investors should carefully consider the investment objectives and risks as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. Past performance is no guarantee of future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. *THE SMARTRETIREMENT MUTUAL FUNDS WERE LAUNCHED MAY 15, Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Source: Morningstar; as of 12/31/14. Past performance is no guarantee of future results. JPMorgan SmartRetirement Income Fund received a Morningstar rating of 4 stars. Overall rating Institutional Shares; as of December 31, 2014; Retirement Income Category; 259 funds. Three year rating 3 stars; 259 funds. Five year rating 4 stars; 235 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2015 Fund received a Morningstar rating of 4 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 141 funds. Three earrating 4 stars; 141 funds. Five year rating 4 stars; 124 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2020 Fund received a Morningstar rating of 5 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 193 funds. Three year rating 5 stars; 193 funds. Five year rating 5 stars; 164 funds. 10 year period not yet rated JPMorgan SmartRetirement 2025 Fund received a Morningstar rating of 5 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 143 funds. Three year rating 5 stars; 143 funds. Five year rating 5 stars; 111 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2030 Fund received a Morningstar rating of 5 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 193 funds. Three year rating 5 stars; 193 funds. Five year rating 5 stars; 164 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2035 Fund received a Morningstar rating of 5 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 143 funds. Three year rating 5 stars; 143 funds. Five year rating 5 stars; 111 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2040 Fund received a Morningstar rating of 4 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 192 funds. Three year rating 5 stars; 192 funds. Five year rating 4 stars; 163 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2045 Fund received a Morningstar rating of 4 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 134 funds. Three year rating 5 stars; 134 funds. Five year rating 4 stars; 110 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2050 Fund received a Morningstar rating of 4 stars. Overall rating Institutional Shares; as of December 31, 2014; Target Date Category; 165 funds. Three year rating 5 stars; 165 funds. Five year rating 4 stars; 127 funds. 10 year period not yet rated. JPMorgan SmartRetirement 2055 Fund contains less than three years of history and is not rated by Morningstar. TARGET DATE FUNDS: The JPMorgan SmartRetirement Funds are target date 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. Fixed income investing is subject to interest rate risks. Bond prices and other fixed income product prices generally fall when interest rates rise. International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations. The risks associated with foreign securities are magnified in countries in emerging markets. These countries may have relatively unstable governments and less-established market economies than developed countries. Emerging markets may face greater social, economic, regulatory and political uncertainties. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries. Securities rated below investment grade are called high-yield bonds, non-investment grade bonds, below investment-grade bonds, 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, there is a greater risk that the fund s share price will decline. 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 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. JPMorgan Chase & Co., April 2015 SR-BRO-ACTIVE