J.P. Morgan: A global asset management leader

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J.P. Morgan: A global asset management leader

  1. 1. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE J.P. Morgan: A global asset management leader J.P. Morgan Asset Management is one of the world’s leading Global leadership investment management firms. With more than $1.2 trillion in • #4 largest mutual fund firm in the U.S.1 global assets under management,* we offer a comprehensive • Ranked third in long-term net mutual array of product solutions and services to institutional investors, fund flows in 20092 investment advisors, sovereigns and central banks, and affluent • #1 largest international AAA-rated liquidity fund complex3 individuals around the world. We strive to provide investment • Largest hedge fund manager in the opportunities that respond to the diverse needs of our global world4 clientele. • #3 largest U.S. institutional private equity manager1 Our investment management presence in 23 countries includes 44 offices worldwide, served • #1 largest U.S. institutional real estate equity manager1 by nearly 700 investment professionals.** We can offer investors the breadth and depth of our • Manages well over 100 mutual funds, global research capabilities, along with the discipline of our methodology and our heritage as as well as separately managed an industry leader and innovator. accounts and retirement products • Disciplined investment approaches, tested and refined over a century of J.P. Morgan Asset Management: Assets market cycles BY CLIENT SEGMENT BY ASSET CLASS** 1 Pensions & Investments, May 2009 2 Strategic Insights, 2010 3 iMoneyNet, December 2009 4 Pensions & Investments, March 2010 n $709B: Institutional n $591B: Money market n $540B: Retail, Private Bank, n $339B: Equities and multi-asset * Based on AUM for the asset management Private Wealth Management n $226B: Fixed income [J.P. Morgan Asset Management, PB, and Bear Stearns Private Client Services PWM, Bear Stearns PCS] division of n $ 93B: Alternatives JPMorgan Chase & Co. as of December 31, 2009. ** As of December 31, 2009. Investment performance *** Source: J.P. Morgan Asset Management, ratings based on Lipper Analytical Services as of December 31, 2009 for the 82% of mutual funds in 1st and 2nd quartiles of their Lipper categories over five years*** Select shares. 67% of mutual funds in 1st and 2nd quartiles of their Lipper categories over three years*** 61% of mutual funds in 1st and 2nd quartiles of their Lipper categories over one year*** Insight + Process = ResultsSM
  2. 2. 5% U.S. large cap 2% U.S. multi-cap 1% U.S. small cap 2% International equities 88% Fixed income 2% Cash Envestnet Model Portfolios CG J.P. Morgan Funds in ... Conservative allocation Moderate conservative allocation 5% U.S. large cap 21% U.S. large cap 14% U.S. large cap 2% U.S. multi-cap 10% U.S. multi-cap 6% U.S. multi-cap 1% U.S. small cap 4% U.S. small cap 3% U.S. small cap MG 2% International equities 5% U.S. large cap 3% REITs 1% REITs 21% U.S. large cap 88% Fixed income 6% International equities 12% International 10% U.S. multi-cap equities 2% U.S. multi-cap 48% Fixed income 68% Fixed income 21% Cashlarge cap 2% U.S. 1% U.S. small cap 4% U.S. small cap 2% Cash 2% Cash 3% REITs 10% U.S. multi-cap 2% International equities 88% Fixed income cap 4% U.S. small 12% International equities 3% REITs 2% Cash 48% Fixed income MG 12% International equities 2% Cash 48% Fixed income TARGET ALLOCATIONS TACTICAL Cash 2% BANDS TARGET ALLOCATIONS TACTICAL BANDS MG Equity/Fixed income: 10/90 Stock/bond: +/- 4% Equity/Fixed income: 30/70 Stock/bond: +/- 4% Intra equity: +/- 5% MG Intra equity: +/- 5% Intra fixed income: +/- 5% Intra fixed income: +/- 5% M Moderate allocation Growth allocation 14% U.S. large cap 25% U.S. large cap 6% U.S. multi-cap 14% U.S. multi-cap 3% U.S. small cap 6% U.S. small cap 1% REITs 21% U.S. large cap 14% U.S. large cap 5% REITs 25% U.S. large cap G 20% International equities 10% U.S. multi-capequities 6% International 6% U.S. multi-cap 14% U.S. multi-cap 68% U.S. small cap 28% Fixed income 4% Fixed income 3% U.S. small cap 25% U.S. large cap 6% U.S. small cap 2% Cash 2% Cash 3% REITs 1% REITs multi-cap 14% U.S. 5% REITs G 12% U.S. small cap equities 6% International 6% International equities 20% International equities 48% REITs income 5% Fixed 28% Fixed income 68% Fixed income 2% Cash 2% Cash G 2% Cash 20% International equities 28% Fixed income 2% Cash MG TARGET ALLOCATIONS TACTICAL BANDS TARGET ALLOCATIONS TACTICAL BANDS Equity/Fixed income: 50/50 Stock/bond: +/- 8% Equity/Fixed income: 70/30 Stock/bond: +/- 8% Intra equity: +/- 10% Intra equity: +/- 10% Intra fixed income: +/- 10% Intra fixed income: +/- 10% AG AG J.P.AG Morgan Funds in asset allocation breakdowns 33% U.S. large cap Aggressive growth allocation 18% U.S. multi-cap 25% U.S. large cap 8% U.S. small cap 14% U.S. multi-cap 7% REITs 33% U.S. large cap 6% U.S. small cap 32% International equities 5% REITs n U.S. large cap G 18% U.S. multi-cap 2% Cash 8% U.S. small cap n International equities 33% U.S. large capequities 20% 18% International U.S. multi-cap • U.S. Equity 7% REITs • International Opportunities 28% Fixed income 8% 2% U.S. small cap Cash • Intrepid America 32% International equities • International Equity 2% Cash 7% REITs • Emerging Markets Equity 32% International equities 2% Cash n U.S. multi-cap • Growth Advantage n Fixed income • Value Advantage • Core Bond • Short Duration Bond n U.S. small cap • High Yield TARGET ALLOCATIONS TACTICAL BANDS Equity/Fixed income: 98/2 Stock/bond: +/- 8% • U.S. Small Company • Emerging Markets Debt Intra equity: +/- 10% Intra fixed income: +/- 10% n REITs n Cash • U.S. Real Estate • Money Market AG • International Realty As of 12/31/09. For illustrative purposes only. cap 33% U.S. large 18% U.S. multi-cap 8% U.S. small cap
  3. 3. J.P. Morgan strategies available at Envestnet Investment options Key investment Mutual Funds (standard & tax-sensitive) professionals* The Global Multi-Asset Group (“GMAG”) Corporate overview within JPMIM is responsible for J.P. Morgan Investment Management Inc. (JPMIM) is the asset management arm of JPMorgan all asset allocation portfolios. The Chase & Co., a publicly traded company, and operates under the J.P. Morgan Asset Management group consists of over 40 investment brand name. JPMIM offers over 200 different strategies across the full spectrum of asset professionals located around the world. classes. The senior members of GMAG each have over 20 years’ experience and AUM as of December 31, 2009: 10 years’ tenure with JPMIM. The key investment professionals responsible JPMIM had $1.2 trillion under management, of which $30.6 billion are managed by GMAG.** for the Envestnet portfolios include: Private account minimum: Michael Fredericks Minimum of $25 million to have a private account. Vice President Portfolio Manager, GMAG Over 14 years’ investment experience. Investment philosophy JPMIM’s Global Tactical Asset Allocation strategy aims to provide high risk-adjusted returns by Neill Nuttall diversifying across global asset classes as well as across a selection of managers within each Managing Director asset class. Chief Investment Officer, GMAG Over 32 years’ investment experience. JPMIM develops forward-looking capital market assumptions to determine return, volatility and Michael Schoenhaut correlation assumptions for the long term. These long-term views are combined with shorter- Vice President term quantitative model results to create a well-diversified portfolio based on risk tolerance Quantitative Portfolio Management and objectives. GMAG Over 12 years’ investment experience. JPMIM implements the recommended asset mix through funds selected from the J.P. Morgan family of funds. J.P. Morgan has over 160 products in its family of funds including behavioral finance, quantitative strategies, alpha-extension strategies, fundamental active management and enhanced index strategies. Asset allocation methodology * As of December 31, 2009. The cornerstone to J.P. Morgan’s process is long-term strategic asset allocation, which is set ** Based on AUM for the asset management annually based on 10-year forward-looking capital market assumptions. Shorter-term outlooks [J.P. Morgan Asset Management, PB, PWM, Bear Stearns PCS] division of JPMorgan are used for tactical positioning while paying close attention to the overall risk budget of the Chase & Co. as of December 31, 2009. portfolio. A combination of proprietary quantitative models and qualitative analysis using a 3-12 month outlook drives the tactical asset allocation. The quantitative models measure systematic relationships between asset classes using a variety of factors that reflect five key drivers of performance: valuation, business cycle, liquidity, risk and technical indicators. Tactical positions are carefully scaled based upon the underlying risk budget. Lower risk positions will typically be limited to 0.5% tracking error versus the strategic benchmark, while higher risk positions will typically be limited to 1.5% tracking error versus the benchmark.
  4. 4. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE J.P. Morgan Asset Management 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. 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 2010 SA-RIA-ENVEST Insight + Process = ResultsSM

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