Bottom-up, style-driven process:

We aim to exploit persistent market inefficiencies that have arisen due to human behavioural biases. Evidence shows that sustainable outperformance can be achieved by systematically investing in stocks that are attractively valued, are high quality, and have positive momentum. Combining these three styles in a single portfolio potentially further improves consistency of outperformance.

Disciplined active management:

Rigorous bottom-up stock selection is the key to our process. Our investment process is based on the rigorous application of style analysis, fundamental research and disciplined and formal risk control and execution.

Team approach:

A clear and disciplined team approach to portfolio management ensures that information on stocks is discussed openly and reflected appropriately in our portfolios. This means our clients benefit from the expertise of all our 43-strong established investment team.

Within Asset Management (“AM”), there are two distinct fixed income teams:

• Global Fixed Income, Currency and Commodities

• Global Liquidity

These fixed income teams all report into the CEO for AM, Chris Willcox. As at 30 September 2017, the combined AUM for our fixed income and liquidity groups, within AM, was USD 985.0 billion.

As at 30 September 2017, the Global Fixed Income Currency and Commodities team (“GFICC”) manage USD 476.3 billion in fixed income and currency assets. The team, led by CIO and Global Head of GFICC, Bob Michele, consists of over 200 investment professionals, operating in every major market around the world. Our globally integrated, research driven approach to investing enables us to create long-lasting value for clients. Experienced investment professionals, based in various locations across the United States, Europe, Latin America and Asia, scan the markets daily for investment opportunities. Their insights are shared across our global group in a collaborative cross-border dialogue, ensuring that the best ideas are leveraged across all of our offerings.

The team oversees a broad range of fixed income strategies, including broad market, long duration, stable value, intermediate, high yield, emerging markets debt, short and ultra short duration, global bonds, structured products, mortgages and tax-aware strategies.

J.P. Morgan Global Liquidity offers an ever expanding suite of international liquidity funds available in a range of currencies including US Dollars, Euro, Sterling, Australian Dollar, Hong Kong Dollar, Singapore Dollar and Chinese Renminbi. We provide seamless global servicing capabilities with Relationship Managers located throughout the Americas, EMEA and APAC and Service Centres in the US, Luxembourg, Hong Kong and Shanghai.

With the largest funds, the highest rankings and the consistent recognition of our industry and peers, J.P. Morgan inspires investor confidence and provides unsurpassed client experiences. With our size, large transactions can be accommodated without sacrificing daily liquidity.

Key Highlights:

1. JPM is the largest provider of Institutional Money Market Funds, managing over $490Bn in AUM as at Dec 2017

2. Our Funds are AAA-rated by at least one of the credit rating agencies (Moody’s/ Fitch/S&P)

3. Our Investment process is built upon the following core objectives:

• Capital Preservation through conservative investment approach

• Maintaining Adequate Liquidity - we offer daily T+0 access to the funds

• Offering a Competitive Yield

• Credit Risk Reduction via portfolio diversification
  

JPMAM has been managing convertible portfolios since 1995. We aim to provide our clients with a full range of investment opportunities across all major products and asset classes, and view the Global Convertibles product as an attractive investment opportunity, given its diversification and attractive risk profile and its reduced exposure to market declines in relation to equities. The asset size has progressively increased since inception in 1995 and our aim is to continue focusing on delivering excellent performance for our clients.

There are three key factors that differentiate our investment process from that of our competitors:

To make the most of convertibles, it is important to invest with a provider that has the experience and expertise to harness the investment opportunities from all over the world in a changing market environment. At JPMAM our experienced, dedicated team are real specialists in the asset classes. We have better coverage than our competitors with investment professionals located in regional markets around the world.

One of our main competitive advantages is our people and team structure. Our dedicated global convertibles team sits with Multi-Asset Solutions team and shares information. This stands out amongst our competitors who often operate on a “silo” basis, with equities, convertibles and other fixed income products being managed by entirely separate teams with no interaction, or in small teams with limited resources.

Our dedicated global convertibles team has experience in managing these specialist instruments with a strong focus on security selection and underlying equity valuation. The investment process employed has been tested and refined through market cycles and the track record of our longest running global convertible fund has allowed us to successfully launch and market the strategy all over the world.

In addition, we are very skilled at managing multi-asset portfolios. This differentiates us from most global convertibles houses, which tend to specialise within a small team or have expertise just in equities or bonds. We have brought together our multi-asset expertise in the portfolios that we manage.

J.P. Morgan Asset Management’s Multi-Asset Solutions is widely regarded as a pioneer in asset allocation. For 45 years, Multi-Asset Solutions has managed multi-asset class portfolios in a fiduciary capacity for a wide range of clients including defined contribution plans, defined benefit plans, endowments and foundations, insurance companies, official institutions, as well as financial advisors and their clients. Multi-Asset Solutions consists of over 80 investment professionals globally with over USD 250 billion in assets under management as of 31 December 2017.

We work closely with financial advisers and institutions including sovereigns, insurers and pension plans to build deeper relationships and help them achieve a range of investment goals. Multi-Asset Solutions formulates investment insights through its capital markets research, and the input of J.P. Morgan’s global network of investment professionals. These extensive resources and global perspectives support the team’s evaluation of market opportunities, inform their multi-asset investment decisions, and assist as they strive to deliver consistent, risk-adjusted investment results.

JPMAM is principally recognized for its Core Real Estate investment offering globally. The firm manages the largest open ended core US Real Estate fund in the world with gross assets of $42bn and net assets of $32bn as at 3Q2017).

In addition, JPMAM has also a strong real estate offering in the more opportunistic space, in Europe as well as in the US and Asia.

Our REIT offering is managed by Security Capital, a boutique platform with JPMorgan in the US. Security Capital has an exclusive focus on US real estate securities in all capital tranches. The team has currently $4.8bn total assets under management as of September 30 2017.

The JPM Infrastructure Strategy is a dedicated open-ended core/core+ infrastructure platform that is diversified across OECD countries and by sub-sector. As at 30 September 2017, the platform reached over USD 8.5 billion in net asset value, with 278 assets held in 17 portfolio companies across regulated utilities, transportation and power generation.

Key characteristics include:

• Strong cash yield: The Strategy is designed to deliver stable returns over a medium-term investment horizon, with the majority expected from cash yield given the Strategy’s core risk profile.

• Strategic platform investing: The Strategy utilizes a platform investment approach focusing on the middle market, facilitating access to opportunities that may otherwise be competitive.

• Active asset management: The Strategy targets majority and control positions to enable the implementation of our business plans and emphasizes governance as the centrepiece of our investment approach.

• Responsible investment: The Strategy believes that continuous improvement of our assets with respect to sustainability will ultimately improve both the environment in which those investments exist as well as asset competitiveness and value.

The Strategy has a dedicated team of over 40 professionals located in New York and London, with senior investment professionals averaging over 17 years of infrastructure experience as at 30 September 2017.

The flagship Strategy is a closed-end, global special situations credit Strategy managed by JPMAM’s GSS Group. The Strategy will principally target distressed and event-driven/stressed, investments in below-investment grade private credit across a broad range of instruments (loans, bonds, liquidation claims, re-org equity etc.), multiple geographies and industries. The Strategy is a continuation of the core investment philosophy and approach previously employed by the GSS Co-CIOs in JPMorgan’s Corporate and Investment Bank and will seek to capitalise on investment opportunities throughout the credit cycle.

The JPMAM - Private Equity Group (“PEG”), is built on continuity and experience, extending back now more than three decades. PEG consists of 48 investment professionals* and has a global footprint with locations in New York, London, Hong Kong, and New Delhi. The Group currently manages $26 billion in AUM* across separate accounts, commingled funds and focused strategies and benefits from the support and broader resources of J.P. Morgan.

PEG’s reputation and dedication to the asset class are second to none and enable the Group to obtain sizeable allocations to over-subscribed partnerships, participate in direct and secondary opportunities, and negotiate favorable terms on behalf of investors as they construct opportunistically diversified PE portfolios. The platform offers flexibility and customization to investors along with the capability to construct customized collaborative solutions. Additionally, we believe the Group is uniquely positioned due to a number of factors:

• Dedicated global professionals with deep experience: 28 year average tenure from nine founders, MDs have worked together for 19 years, and total average group tenure of 15 years*

• Ability to construct opportunistically diversified PE portfolios, track record of consistent style and approach through due diligence across multiple cycles

• Select access to oversubscribed and less available PE opportunities through extensive network and proprietary database of 9,000+ offerings*

• Alignment of interest with investors through 1.25% investment by PEG professionals**

• Strategic partner to provide broader investment support, portfolio construction and modeling, education, consolidated reporting, monitoring, and administrative and risk management expertise.

* as of December 31, 2017

** The co-investment percentage for PEG professionals is calculated across PEG’s platform of products and accounts, and may be greater or less than 1.25% for any particular one. The allocation percentage is reviewed each calendar year, and on an aggregate level it has been at or above 1% for the past 10 years and is expected to remain at or above this level going forward. The co-investment by PEG professionals in a particular product or investment may be limited or discontinued if required by law or policy.

The Absolute Return & Opportunistic Fixed Income Team manages over USD 17 billion* in Absolute Return Fixed Income strategies across Luxembourg domiciled SICAV funds and U.S. Mutual Funds. With strategy inception of 2007, the team has one of the longest track records in the non-traditional bond space and manages one of the largest absolute return funds globally. The team employs a systematic approach to hedging as well as alternative and niche market expertise to offer unique solutions for a wide range of investors.

*as of December 31, 2017

We are fortunate to be leaders in both the emerging markets equity and emerging markets debt asset classes. Ourstrength comes in part from the close co-operation between the two teams and having a dedicated portfolio manager who is responsible for building a single portfolio.

The scale and scope of our global expertise, coupled with a disciplined investment process in which we leverage local insights to better understand fundamentals, valuation, and technical drivers of each country and company, we believe, sets us apart. We believe we are uniquely able to combine macro views, security selection and risk management to deliver superior risk-adjusted returns. We can demonstrate skill over long-periods in both asset classes, through our successful track record across a range of global and regional emerging markets strategies, and through a variety of market environments.

We believe the Total Emerging Market strategy is differentiated from our peers based on the following:

Our extensive experience of investing in both emerging market equity and emerging market debt.

• JPMAM is a leading specialist in emerging markets with over 45 years of investing in EMAP equity and over 20 years of investing in emerging markets debt.

• The strategy is managed by seasoned emerging markets specialists.

• Supported by 98 investment professionals (as of 31 December 2017)

We research the full universe of opportunities with unique coverage of countries, sectors and securities.

• We conduct over 5,000 company meetings each year, covering over 40 countries and research over 1,600 securities. We believe this breadth of coverage and experience of the investment professionals affords us unique insights across the emerging markets’ capital structure.

• Global presence allows us to gain greater insight into the emerging economies within Latin America, Europe, Middle East, Africa and Asia.

A disciplined investment process with strategic asset allocation and rigorous risk control.

• Multi-dimensional, disciplined investment approach that combines country and thematic views with our best security ideas.

• Significant flexibility to move to either an 80/20 equity/debt weighting or vice versa.

• Risk management embedded in every step of the investment process.

• The strategy has historically achieved strong risk-adjusted returns.
  

In June 2016, JPMAM expanded its commitment to developing our capabilities and offerings in the traditional market cap beta, strategic beta and alternative beta space with the creation of the Beta Strategies Group under the leadership of Michael Camacho. The new group was set up to complement JPMAM’s existing franchise in the active and alternative space. Reflecting the importance of this newly created group, Michael Camacho is a member of the Global Asset Management Operating Committee and reports directly to Chris Willcox, the CEO of J.P. Morgan’s Asset Management business.

The Beta Strategies Group is responsible for managing a wide range of products across all asset classes, in both long-only and in long-short. In long-only, this includes passive replication of standard indices and replication of customised indices (developed in partnership with index providers using our research and intellectual property). We are also able to implement portfolios directly without the use of an external index provider, currently including our long-short “alternative beta” strategies where we follow a rules-based systematic approach.

Growing the Beta business within JPMAM is one of the key strategic priorities for the firm in the short-medium term. As a result, we have been beneficiaries in terms of investment into personnel and technology. Since 2016, we have significantly added to resources in the research and portfolio management team as well as to other functions such as the Beta Specialist team and the embedded technology team. Where necessary, e.g. in Strategic Beta Fixed Income and in passive Fixed Income portfolio management, we have hired externally to fill specific requirements.

Our goal is to build a very scalable platform in order to achieve our asset raising growth plans, which includes significant investment in the technology infrastructure to enable our portfolio managers and research team to benefit from state-of-the-art systems.

J.P. Morgan Asset Management (JPMAM) understands that putting our clients’ interests first means recognizing and managing investment risks and opportunities associated with Environmental, Social, and Governance factors. We have a deep understanding of investing across multiple dimensions with a goal of producing risk-adjusted returns that align with our clients’ objectives. Through our engagement and partnership with clients and various organizations, we continually increase our knowledge and views on key ESG issues and best practices.

We have been a signatory to the United Nations-supported Principles for Responsible Investment initiative since 2007 and are committed to incorporating ESG factors into our investment practices, where material and relevant.

We developed a framework to define our capabilities across four ESG categories as depicted below: ESG Integration, Best in Class, Values/Norms-Based Screen and Theme-Based/Impact Investing. Overall, we offer approximately 100 strategies totalling $250bn in assets across these four categories.

Accomplishments:

• Developed and implemented an ESG integration framework across over 50 equity strategies that share our core research process

• Embedded third-party ESG risk factors across our Equity, Fixed Income, Multi-Asset Solutions and Beta Strategies platforms with the ability to measure and report on portfolio exposures

• Launched two Sustainable Equity strategies that seek to provide strong risk-adjusted performance while emphasizing companies that are ESG leaders

• Created a proprietary tool to measure the social and environmental outcomes of the investment securities for our Municipal Income strategy and its benchmark.