THE INCOME SQUEEZE IS ON. Let s talk about how to find income and manage against risks to ensure your portfolio is prepared. 10YR TREASURY YIELDS 15% (1981) 6% (2008) 2% (2015) jpmorgan.com/findincome
Here are 2 considerations for finding income and managing risks in your portfolio: 1 INCOME IS HARDER TO FIND THAN IT USED TO BE 2 DIVERSIFICATION IS CRITICAL Interest rates remain near historic lows. This means income is harder to find from previously used sources such as core bonds and CD s. For example, in 2006, $100,000 invested in 6 month CDs would have generated about $5,000 per year. Today, you would only earn $130. Given low rates and potential for increases as well as volatility within some fixed income markets, it s especially important today for investors to be well-diversified within their bond allocation. Diversifying can help improve performance, generate income and reduce the impact of rising rates. REFERENCE: GTM 66 REFERENCE: GTM 41 $5,000 Diversified FI portfolios can outperform those with only core bonds 7 out of 10 past years $130 2006 2014 Diversified FI portfolios Barclays Aggregate
Let s look at a 3 tiered fixed income approach to help meet your needs: 1 BROADER SOURCES OF INCOME (Extended Sector) Investors need solutions that look across borders and asset classes to find the best sources of income. 2 MANAGEMENT AGAINST INTEREST RATE RISES (Core Complements) Given potential future rate increases, investors need solutions in their portfolio that protects against inflation and potential rising rates. 3 DIVERSIFICATION BEYOND STOCKS (Core Holdings) Because core bonds can help diversify stock market volatility, they remain an important component of a well-diversified portfolio. INCOME FRAMEWORK
When combined, these J.P. Morgan Funds can help you earn more income with less risk J.P. MORGAN INCOME BUILDER FUND Broaden sources of income (Extended Sectors). Our best ideas for finding income around the world. 40 % 20 % J.P. MORGAN STRATEGIC INCOME OPPORTUNITIES FUND Manage against interest rate rises (Core Complements). Seeks lower volatility, diversification beyond core bonds and steady, uncorrelated returns regardless of market direction. J.P. MORGAN CORE BOND FUND Diversify beyond stocks (Core Holdings). A high quality bond solution that works to reduce your overall portfolio s sensitivity to stock market volatility. 40 % INCOME FRAMEWORK
To learn more about our solutions visit jpmorganfunds.com Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. The prospectus contains this and other information about the mutual fund or ETF and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or download it from this site. Exchange Traded Funds: Call 1-844-4JPM-ETF or download it from this site. Investing involves risk, including possible loss of principal. Investment returns and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Shares are bought and sold throughout the day on an exchange at market price (not NAV) through a brokerage account, and are not individually redeemed from the fund. Shares may only be redeemed directly from a fund by Authorized Participants, in very large creation/ redemption units. Brokerage commissions will reduce returns. Opinions 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. The views and strategies described may not be suitable for all investors. 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 Funds ETF products are distributed by SEI Investments Distribution Co., which is not affiliated with J.P. Morgan Chase & Co. or any of its affiliates. SEI Investments Distribution Co. 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. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE