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A Guide to Mutual Fund Investing

Many investors turn to mutual funds to meet their long-term financial goals. They offer the benefits of diversification and
professional management and are seen as an easy and efficient way to invest in different asset classes. However, as with all
investment choices, investing in mutual funds involves certain risks, fees and expenses.

HELPING YOU REACH YOUR FINANCIAL GOALS.

IMPORTANT REMINDERS
Millions of investors find mutual funds a good option for their long-term
• Mutual funds are not banking
financial goals. Some reasons include: deposits, are not guaranteed by
hh Professional Management – The fund’s portfolio is professionally managed the Federal Deposit Insurance
by experienced money managers who research and select investments that Corporation (FDIC) or any other
are appropriate for the fund’s objective and provide full-time monitoring government agency and involve
of the performance of those investments. If changes are necessary, they’re risks including the possible loss of
some or all of your investment.
able to modify the fund’s holdings.
• Past performance is not a reliable
hh Variety – Mutual funds offer a wide range of options in terms of assets indicator of future performance.
classes and objectives. There are stock and bond funds, income and growth However, past performance can
funds or funds that try to achieve several objectives, and conservative help you assess a fund’s volatility
and more risky funds. Mutual funds provide a convenient way to create a over time.
portfolio that meets your specific investment objectives and risk tolerance. • All mutual funds have costs
that may lower your investment
hh Diversification – Depending on their specific objectives, mutual fund returns.
portfolios are generally diversified over many different companies
• The mutual funds and share classes
and industries. The concept of diversification is as simple as the time- available are limited and will
tested advice, “Don’t put all your eggs in one basket”. By spreading your change from time to time.
investments across a wide range of companies and industry sectors, you
• Before you invest, be sure to
can better protect your assets during market fluctuations. Mutual fund
read the fund’s prospectus
ownership makes it easy for an investor to maintain a diversified investment
and Statements of Additional
portfolio. Information (“SAI”) to learn about
the fund you’re considering.
hh Affordability – To invest in a diversified portfolio of individual securities
These documents have tables
could require a large investment. Many mutual funds allow investors to of contents which allow you to
purchase shares for a relatively low dollar amount for initial and subsequent easily find information about
purchases. investment objectives, risks and
tax considerations. By clearly
hh Liquidity – Investors generally may redeem their mutual fund shares for understanding the investment
any reason at the current net asset value (NAV), plus any fees and charges you’re considering, you’ll be
assessed on redemption. Liquidity can be impacted by market conditions better prepared to make a sound
investment decision.
hh Dividend Payments – A fund can earn income in the form of dividends and
• Asset allocation/diversification
does not guarantee a profit or
protect against a loss.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of the mutual fund before
investing. To obtain a prospectus, visit the fund company’s website. The prospectus contains this and other information about the
mutual fund. Read the prospectus carefully before investing.
JPMorgan Chase Bank, N.A. and its affiliates do not offer legal, tax or accounting advice. Clients are urged to consult their own legal, tax and
accounting advisors with respect to their specific situations.
JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank managed accounts
and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts,
are offered through J.P. Morgan Securities LLC (JPMS), a member of FINRA and SIPC. Annuities are made available through Chase Insurance
Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are
affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

INVESTMENT AND INSURANCE PRODUCTS ARE:

• NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF,
OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
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interest on the securities in its portfolio, which is passed on to shareholders in the form of dividends.

hh Dividend Reinvestment – You can set your account up for the automatic reinvestment of any dividends generated by your
fund, allowing you to accumulate more shares without incurring a sales charge.

hh Capital Gains Distribution – Occurs when the fund sells a security that has increased in value. At the end of each year,
most funds will distribute any capital gains (minus any capital losses) to their investors. You may also elect to have these
distributions reinvested without incurring a sales charge.

LEARNING MORE ABOUT MUTUAL FUNDS

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds and other
securities or assets in some combination depending on its investment objectives. The holdings of the mutual fund are its
“portfolio”. Each share of the mutual fund represents an investor’s proportionate ownership of the fund’s holdings and the
income or appreciation those holdings may generate. Mutual funds also have some unique characteristics that investors need
to consider before making the decision to invest:
hh Costs Despite Negative Returns – Sales charges, fees and other expenses must be paid by the mutual fund investor
regardless of how the fund performs. In addition, when shares are sold, investors may also be required to pay taxes on any
capital gains distribution they receive, even if the fund declines in value after the shares are purchased, or the shares have
been held a relatively short period of time. This is especially important at the end of the year when many funds distribute
capital gains.

hh Knowledge of Portfolio Holdings – By relying on the fund managers to manage the fund’s holdings, the individual investor
usually has little current knowledge of the exact make-up of a fund’s portfolio. Additionally, they have no direct influence on
the timing or selection of securities the fund manager buys or sells.

hh Degrees of Risk – All mutual funds carry some degree of risk. You may lose some or all of the money you invest (your
principal) because the securities held by a fund fluctuate in value on a daily basis. Any dividends or interest payments may
also fluctuate due to changing market conditions.

hh Buying and Selling Mutual Funds – Investors may purchase mutual fund shares in a number of ways. The two most common
are from the fund itself or through a Financial Advisor. The price paid for mutual fund shares is the fund’s per share net asset
value (NAV), plus any shareholder fees that the fund may impose at the time of purchase, such as sales loads. The NAV is
calculated at the end of each business day by dividing the total value of the fund’s holdings (less expenses) by the number
of shares owned by the fund’s shareholders. Purchasers of mutual funds purchase at the NAV next calculated after they
place their purchase order. Mutual fund shares are “redeemable”, meaning that investors can sell their shares back to the
fund at any time. The portfolios of mutual funds are managed by separate entities known as “Investment Advisors” that are
registered with the U.S. Securities and Exchange Commission (SEC).

Mutual funds strive to achieve a particular investment objective, such as capital appreciation or current income, over time.
Most mutual funds are generally designed for long-term investors. Therefore, they are not suitable investors seeking quick
profits or those attempting to “time the market” through active trading.
In fact, most mutual funds implement practices and procedures that protect shareholders from investors who are actively
trading shares in order to time the market. Market timing involves the rapid buying and selling of mutual fund shares in an
attempt to realize short-term profits. This excessive trading of mutual fund shares may disrupt a fund’s investment strategy.
It also may negatively influence performance results by increasing trading costs and/or causing fund managers to hold more
cash than they otherwise would prefer to hold. In order to discourage investors from using their funds to practice market
timing, a fund may:
hh Impose Redemption fees – Some mutual funds charge fees to investors who redeem their shares within a few months of
purchasing them. Usually the fund company returns the redemption fees to the fund’s portfolio to offset the costs associated
with short-term trading.
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hh Implement Trading Restrictions – Most funds limit the number of exchanges (selling shares of one fund and using the
proceeds to purchase shares of another in the same fund family) and “round-trip” transactions (a purchase followed by a
redemption) that shareholders may make within a specific time period. For example, a fund may limit shareholders to two
substantive exchanges within a 30-day period.

hh Modify exchange privileges – Most mutual fund families let their shareholders exchange shares of one fund they manage
for shares of another fund they manage with some restrictions. If this practice results in excessive trading, the fund may
modify the exchange privilege. For example, it may make exchanges into certain funds effective on a delayed basis in order
to disrupt a market timing strategy.

hh Identify and Isolate Market Timers – Some funds attempt to identify market timers by monitoring shareholder
transactions. Upon identifying market timers, the fund may restrict the timers’ trading privileges or expel them from the
fund.

DIFFERENT TYPES OF MUTUAL FUNDS

Investors today have thousands of choices when it comes to investing in mutual funds. Understanding your individual
financial goals and risk tolerance is the first step in the journey to reach your long-term financial goals. It will also help
determine which mutual funds are right for you.
Mutual funds generally fit into three main categories—money market funds, bond funds, stock funds (also called “equity”
funds). Each category has unique features, risks and rewards. In general, the higher the potential return, the higher the
potential risk of loss.
There are rules requiring a fund to invest at least 80% of its assets in the type of investments suggested by its name.
However, funds can invest up to 20% of their holdings in other types of securities. The investment parameters of what the
fund can and can’t hold are contained in the prospectus, which you should always read carefully before investing.
hh Money Market funds – In October of 2016, the U.S. Securities and Exchange Commission adopted new money market
reforms. These reforms are intended to reduce the potential risks to money market funds during periods of extreme
market stress. Under these reforms, money market funds fall into three general categories: Government, Retail and
Institutional. During periods of market turmoil, when certain triggers are met and depending into which category they fall,
money market funds could be subject to redemption gates, liquidity fees and/or floating net asset value (NAV). For more
information about money market funds and the October 2016 changes, please see page 12.

hh Bond (or Income) Funds – Generally have higher risks than money market funds, due to the fact that they typically pursue
strategies aimed at producing higher yields. Unlike money market funds, there are no laws to restrict bond funds to high-
quality or short-term investments. Because there are many different types of bonds, these funds can vary dramatically
in their risks and rewards. One of the major risks associated with bond funds is “credit risk”, or the risk that companies
or other issuers may fail to pay their debts. The credit quality of the bonds contained in a fund will have a direct impact
on their credit risk. Another risk is “interest rate risk”, or the risk that the market value of the bonds will go down when
interest rates increase. Funds that invest in longer-term bonds tend to have a higher interest rate risk and fluctuate more
dramatically in value. Interest earned on a bond fund’s portfolio is passed through to investors as dividends, which may
be taken in cash or reinvested. This component of a bond fund’s earnings (less expenses) is called its yield. The two major
factors that affect a bond fund’s yield are the quality and maturity of the bonds in the portfolio. In general, lower quality
bonds and those with longer maturities generally offer higher yields but have increased risks. The share price or NAV of a
bond fund may change based upon the market value of the bonds in the portfolio. The value of the bonds in the portfolio
may change in response to changes in interest rates. To calculate the total return of a bond fund, it is necessary to include
the change in share price along with any income earned (dividends and capital gains distributions).

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hh Stock (or Equity) Funds – Typically have higher risks and volatility than money market and bond funds. However, over the
long term, stocks have historically performed better than any other type of investment. “Market risk” is the greatest potential
risk for investors in stock funds. Stock prices can fluctuate dramatically for many reasons, such as the overall strength of the
economy or demand for particular products or services. Types of stock funds include:

hh Growth Funds focus on stocks (companies) that may not pay a regular dividend but have the potential for large growth.
There are also different types of growth funds, including small, medium and large cap funds, which will invest in the stock of
these types of companies.

hh Sector Funds may specialize in a particular industry segment, such as technology or consumer products stocks. A sector
fund concentrates its investments in one sector and involves more risks than a fund that invests more broadly.

hh Equity Income Funds invest in stocks that generally pay regular dividends.

hh Index Funds seek to achieve the same return as a particular market index, such as the S&P 500 Composite Stock Price Index,
by investing in all or many of the companies included in the index. It is not possible to directly invest in an index. Returns of
the fund are considered net of fees.

hh Balanced Funds – Provide investors with a combination of both stock and bond holdings in one mutual fund.

hh Unit Investment Trusts (UITs) – Type of investment company that buys and holds a generally fixed portfolio of stocks, bonds
or other securities meaning, unlike mutual funds, the portfolios won’t be regulatory. “Units” in the trust are sold to investors
who receive a share of principal and dividends or interest. UITs have a stated termination date. Like mutual funds, UITs may
charge an initial sales charge and a deferred sales charge. The UIT’s prospectus contains information about the portfolio of
securities within the UIT and the sales charges.

hh Exchange Traded Funds (ETFs) – Type of investment company that offers investors a proportionate share of a portfolio of
stocks, bonds or other securities. Like individual equity securities, ETFs are traded on a stock exchange and can be bought
and sold throughout the trading day through a broker dealer. Many ETFs attempt to track various stock market sectors,
international indices and bond indices. Recently, additional types of ETFs, including leveraged ETFs and actively managed
ETFs have been introduced. Since ETFs trade on an exchange, like stocks, the value is determined by the prices buyers and
sellers are willing to pay and may be different from the NAV of the underlying securities or investments. Therefore, ETFs may
trade at a premium or discount to the NAV.

hh Non-Traditional Funds – Non-traditional funds are mutual funds or ETFs that pursue alternative investment strategies. While
traditional funds generally focus their investment strategies on long-term buy-and-hold stock and bond investing, non-
traditional funds generally employ more complex trading strategies, such as selling securities short in anticipation of a drop
in their price, using leverage, and purchasing options and futures. Some non-traditional funds also focus their investment
strategies on investing in gold, commodities (such as copper and oil) or real assets such as real estate. These strategies have
generally been associated with alternative investment products such as hedge funds.

MUTUAL FUND FEES AND EXPENSES

Running any business involves costs, and mutual fund companies are no exception. Transaction costs, advisory fees,
marketing and distribution expenses (12b-1 fees) are just a few of the costs associated with running a mutual fund. These
costs are passed to investors in the form of fees and expenses. It’s important to clearly understand these fees, because they
will impact your investment returns.
hh Sales Charge (Load) – Paid when you initially purchase mutual fund shares. Usually associated with A shares, this charge is
also known as a “front-end load”. A portion of this is usually paid to the broker selling the shares. Sales charges reduce the
amount of your initial investment, as they are deducted from your initial investment purchase.

hh Contingent Deferred Sales Charge (Load) – Paid when you sell mutual fund shares. Usually associated with B or C shares,
this charge is also known as a “back-end load”. The amount will depend on how long you own the shares, and may decrease
to zero if a B share held as a long-term investment. This may also be paid when selling shares purchased without a front-end
load because the purchase was more than $1 million.

hh Exchange Fee – Paid when shareholders exchange (transfer) to another fund within the same fund group.

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hh Management/Investment Advisory Fees – Paid out of the fund’s assets to the fund’s Investment Advisor for investment
portfolio management and administrative fees that are not included in the “Other Expenses” category.

hh Distribution/Service Fees (12b-1 Fees) – Paid by the fund from fund assets to cover the costs of marketing and selling fund
shares and/or to cover the costs of providing shareholder services, such as advertising, printing and mailing of prospectuses,
phone centers and more. The broker dealer receives these fees, which are also called “trails”, and a portion of them is paid to
a Financial Advisor.

hh Other Expenses – Expenses not included under “Management/Investment Advisory Fees” or “Distribution/Service Fees”,
such as custodial expenses, legal and accounting expenses, transfer agent and administrative expenses.

hh Total Annual Fund Operating Expenses (Expense Ratio) – A line on the fee table that provides the total of a fund’s annual
operating expenses, as a percentage of the fund’s average net assets. Annual operating expenses include the ongoing costs
of running the fund, and the fund company pays these expenses from the fund’s assets before it distributes any earnings
to shareholders. Included among the annual operating expenses of all mutual funds is the investment advisory fee, which
the fund pays to the Investment Advisor for managing the portfolio. In some cases, the Investment Advisor may enter into
revenue-sharing arrangements with firms that distribute the fund. The Investment Advisor finances these arrangements
out of its investment advisory fee and must disclose the details of such arrangements in the prospectus or Statement of
Additional Information (SAI).

hh Revenue sharing – Paid by some funds, their Investment Advisors, distributors or other entities to brokerage firms, or
other distributors of mutual funds, based on the amount of the fund’s shares sold by the distributor. This revenue is paid in
addition to sales loads and 12b-1 fees described in the prospectus. Some mutual fund advisers, distributors or other entities
make payments to J.P. Morgan Securities LLC (JPMS) based on the amount of the fund’s shares sold by JPMS or owned by
JPMS’ clients. A Financial Advisor does not get paid a portion of this revenue.

The fund prospectus is a valuable tool that will provide you with information on the various fees. Each fund prospectus is
required to provide a “fee table” near the front of the prospectus that can help you compare the costs of different funds.

BUYING, SELLING & EXCHANGING

Mutual fund shares can be purchased and sold on any business day. Mutual funds are priced once each day at a time specified
in the prospectus, usually 4:00 pm ET, which is the close of business on the New York Stock Exchange. When your purchase or
sale order is received before the established cut-off time, your transaction will receive the price calculated for that day.
hh Purchasing Mutual Fund Shares – When you buy shares, you pay the current NAV per share plus any fee the fund may
assess at the time of purchase, such as a sales charge or other type of purchase fee.

hh Selling Mutual Fund Shares – When you sell your shares, the fund will pay you the current NAV minus any fee the fund
assesses at the time of redemption, such as a deferred (or back-end) sales charge or redemption fee.

hh Exchanging Shares – Many mutual fund companies have several different types of funds in which to invest. Most offer
exchange privileges within their family of funds, allowing shareholders to transfer their holdings from one fund to another
within the family, without incurring an additional sales charge, as their investment objectives or risk tolerance change.
Exchanges may have tax consequences. Even if the fund doesn’t charge you for the exchange, you’ll be liable for any gain on
the sale of your original shares or, depending on the circumstances, eligible to take a loss.

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UNDERSTANDING SHARE CLASSES

The share classes described below are the most common share classes within in the industry, however some firms may
offer different share classes. Be sure to consult the Fund’s prospectus to understand all share class options available before
investing. Different share classes provide you with choices for how you wish to pay for your investment. Many mutual funds
make more than one share class available to investors. Each share class invests in the same portfolio of securities and has the
same investment objective and policies; however, each share class has different sales charges and expenses. This multi- class
structure allows investors to select a fee and expense structure that is most appropriate for their individual investment goals.
Here is a brief description and comparison of the share classes commonly available to individual investors.

hh Class A Shares
In general, Class A shares include a front-end sales charge (or load) that’s included in the purchase price of the shares and is
determined by the amount you invest. The more you invest, the lower your purchase cost as a percentage of your investment.
Many mutual fund families offer volume discounts known as “breakpoints” based upon the amount of investment.
Information regarding a mutual fund’s breakpoints may be found in the prospectus. For long term investors, Class A shares
generally represent the least costly method to purchase mutual funds. Class A shares usually have lower 12b-1 fees (annual
marketing or distribution fees) than other share classes offered by the fund. Many mutual funds provide that purchases of $1
million or more of Class A shares will not be subject to a front-end sales charge. However, the purchaser will incur a deferred
or back-end sales charge if any of the shares are sold within a specified time period, generally 12-18 months. In addition,
certain investors may be entitled to a sales charge or load waiver based, for example, on account type or employment
affiliation.

hh Class B Shares
Class B shares usually do not contain front-end loads, but rather include back-end sales charges or Contingent Deferred Sales
Charges (CDSC). If you sell the shares within a specified number of years, you pay the sales charge, which usually declines over
time. The 12b-1 fees associated with Class B shares generally are higher than those imposed on Class A shares. Most fund
companies automatically will convert your Class B shares to Class A shares once you’ve held the Class B shares for a specified
number of years. From that point forward, you’ll benefit from the lower 12b-1 fees of the Class A shares. Additionally, higher
total fund expenses will result in lower dividend distributions than Class A shares.

hh Class C Shares
Class C shares generally do not include front-end sales charges, but they do contain higher 12b-1 fees and may have a sales
charge if you sell within the first year. In addition, 12b-1 fees never convert to a lower amount and higher total fund expenses
will result in lower dividend distributions than Class A shares.

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SHARE CLASS SUMMARY

SALES CHARGE 12B-1 FEES BREAKPOINT POTENTIAL CONSIDER FOR

Class A shares Paid at the time of Typically lower than B or Volume discounts called Large, long-term
investment. C share classes. “breakpoints” (or sales investments
charge waivers) may be
available.
Class B Shares Deferred until shares Typically higher than A No volume discounts are Small, long-term
are sold. Charged shares, but may convert available. investments
decreases over several to A share 12b-1 fee
years until it goes to after a specified period
zero. of time.
Class C Shares If imposed, is usually Typically higher than No volume discounts are Short-term investments
charged only if shares Class A shares and available.
are sold within the first never converts to Class
year holding period. A shares.

The fee table in each fund’s prospectus shows the fees and expenses paid by each class of shares. In addition, FINRA provides
an online Fund Analyzer to help you understand the impact that fees and expenses can have on your investment. You may use
the analyzer to compare different share classes or different mutual funds.
Go to: http://apps.finra.org/fundanalyzer/1/fa.aspx

MAKING THE MOST OF MUTUAL FUND CLASS A SHARE DISCOUNT OPPORTUNITIES

Mutual funds that charge front-end sales charges, also known as sales loads, may offer a reduced sales charge when an
investment of a certain amount is made; this is commonly called a “breakpoint”. Usually, there are several breakpoints
available based on an escalating purchase amount; the larger the breakpoint, the lower the sales charge. Each fund company
establishes its own formula for how they will calculate whether an investor is entitled to receive a breakpoint and establishes
its own rules for sales charge waivers. It’s important to read the prospectus to learn how a particular fund establishes
eligibility.
Depending on a fund’s procedures, breakpoints can be met by aggregating positions of the mutual fund a client or certain
family members already own; this is called Rights of Accumulation (“ROA”). A breakpoint can also be met over time, instead of
at the initial purchase, if the client commits to buying addition shares to meet the requirement by providing a Letter of Intent
(“LOI”). If this commitment isn’t met, the fund will charge the pre-breakpoint sales charge.

INSTITUTIONAL, RETIREMENT, NO-LOAD AND OTHER SHARE CLASSES

Institutional, retirement, no-load and certain other fund shares are generally available only through asset-based fee advisory
programs. In these programs, you typically pay an annual fee based on a percentage of the value of the assets held in your
account, including the value of the fund shares. These programs provide features and benefits that may not be available in
a traditional brokerage account that charges transaction fees. The total cost of purchasing and holding mutual fund shares
through an asset-based fee advisory program may be more or less than investing in mutual fund shares in a traditional
brokerage account that is serviced by a Financial Advisor. Certain No-Load funds may also be available (with or without a
transaction fee) on Self-Directed / No-Advice platforms.
A mutual fund’s breakpoint schedule and waiver eligibility rules can be found in the fund’s prospectus or SAI.

TAX CONSEQUENCES
Mutual funds have different tax consequences than many other investments. When you purchase and hold mutual fund
shares, you will owe income tax on any ordinary dividends in the year you receive or reinvest them. Additionally, the law
requires mutual funds to distribute capital gains to shareholders when they sell securities for a profit that can’t be offset by a
loss. You may have to pay taxes on the fund’s capital gains for that year even if you still own the shares. Then, when you sell
your shares, you will owe taxes on any capital gain you received on the sale.

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When you invest in a tax-exempt fund, such as a municipal bond fund, some or all of your dividends will be exempt from
Federal (and sometimes state and local) income tax. You will, however, owe taxes on any capital gains realized by the fund
and on the sale of your shares. Anytime you receive a capital gains distribution, you will usually owe taxes—even if the fund
has had a negative return from the point during the year when you purchased your shares.
Consider contacting the fund to learn when it makes distributions so you won’t pay more than your fair share of taxes.
Mutual funds are required to disclose after-tax returns in the “Risk/Return Summary” section of their prospectuses.
Since J.P. Morgan Securities LLC doesn’t provide tax or legal advice, we encourage you to consult your tax advisor for
more information on the tax consequences of mutual fund investing.

SOURCES OF FUND INFORMATION

hh The Prospectus
When you’re considering the purchase of mutual fund shares, you should always review the fund’s prospectus before you
invest. The prospectus is the fund’s selling document and it contains the following information:
– fund investment objectives/goals
– strategies for achieving those goals
– principal risks of investing in the fund
– fees and expenses
– past performance
The prospectus also provides information on the fund’s managers and Investment Advisors and describes how to purchase
and sell fund shares. The SEC requires funds to include specific categories of information in their prospectuses and to
present key data (such as fees and past performance) in a standard format so that investors can more easily compare
different funds.

hh Statement of Additional Information (SAI)

The SAI explains a fund’s operations in greater detail than the prospectus. It includes the fund’s financial statements and
details about the history of the fund, fund policies on borrowing and concentration, the identity of officers, directors
and persons who control the fund, investment advisory and other services, brokerage commissions, tax matters and
performance such as yield and average annual total return information. The mutual fund is typically required to send you an
SAI anytime you request one, and the back cover of a fund’s prospectus should contain information on how to obtain the SAI.

hh Shareholder Reports
A mutual fund must also provide shareholders with annual and semi-annual reports within 60 days after the end of
the fund’s fiscal year and 60 days after the fund’s fiscal mid-year. These reports contain a variety of updated financial
information, a list of the fund’s portfolio securities and other information.
You may obtain any of these documents by:
– Calling or writing to the fund (all mutual funds have toll-free telephone numbers).
– Visiting the fund’s website.
You can obtain additional information about mutual funds at the educational websites of the U.S. Securities and Exchange
Commission (www.SEC.gov), the Financial Industry Regulatory Authority (www.FINRA.org), the Securities Industry
Association (www.SIA.com) and the Investment Company Institute (www.ICI.org).

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MUTUAL FUND GLOSSARY

1. 12b-1/Distribution Fees – Fees paid by the fund out of fund assets to cover the costs of marketing and selling
fund shares and sometimes to cover the costs of providing shareholder services. “Distribution fees” include fees
to compensate brokers and others who sell fund shares and to pay for advertising, the printing and mailing of
prospectuses to new investors and the printing and mailing of sales literature. “Shareholder Service Fees” are fees paid
to persons to respond to investor inquiries and provide investors with information about their investments.

2. Breakpoints – Mutual funds that charge front-end sales loads may charge a lower sales load for larger investments. The
investment levels required to obtain a reduced sales load are commonly referred to as “breakpoints”.

3. Classes – Different types of shares issued by a single fund, often referred to as Class A shares, Class B shares, etc. Each
class invests in the same “pool” (or investment portfolio) of securities and has the same investment objectives and
policies. But each class has different shareholder services and/or distribution arrangements with different fees and
expenses and therefore different performance results.

4. Contingent Deferred Sales Charge (CDSC) – Type of back-end load, the amount of which depends on the length of time
the investor held his or her shares. For example, a contingent deferred sales load might be (X)% if an investor holds his
or her shares for one year, (X-1)% after two years, and so on until the load reaches zero and is eliminated completely.

5. Exchanges – Mutual fund companies may offer exchange privileges within their family of funds, allowing shareholders to
transfer their holdings from one fund to another within the family.

6. Expense Ratio – Fund’s total annual operating expenses (including management fees, 12b-1 fees and other expenses)
expressed as a percentage of average net assets.

7. Investment advisor/Manager – Person who manages portfolios of securities, including mutual funds.

8. Investment Company – Company (Corporation, Business Trust, Partnership or Limited Liability Company) that issues
securities and is primarily engaged in the business of investing in securities. The three basic types of investment
companies are open-end mutual funds, closed-end funds and unit investment trusts (UITs).

9. Letter of Intent (LOI) – Investing an amount greater than the fund’s breakpoint within a designated period (usually 13
months) makes you eligible to receive a breakpoint discount on the sales charge as if the purchases had been made in a
single lump sum.

10. Management/Advisory Fee – Fee paid out of a fund’s assets to the fund’s Investment Advisor or its affiliates for
managing the fund’s portfolio. Also includes any other management and administrative fees payable to the fund’s
Investment Advisor or its affiliates that are not included in the “Other Expenses” category. A fund’s management fee
appears as a category under “Annual Fund Operating Expenses” in the Fee Table.

11. Mutual Fund – Common name for an open-end investment company. Like other types of investment companies, mutual
funds pool money from many investors and invest the money in stocks, bonds, short-term money-market instruments
or other securities. Mutual funds continuously issue redeemable shares that investors purchase directly from the fund
(or through a broker for the fund) instead of purchasing from investors on a secondary market.

12. Net Asset Value (NAV) – Value of the fund’s assets minus its liabilities. SEC rules require funds to calculate the NAV at
least once daily. To calculate the NAV per share, the fund’s liabilities are subtracted from its assets and then divided by
the number of shares outstanding. NAV is usually calculated at the close of the New York Stock Exchange (4 pm ET).

13. No-Load Fund – Fund that does not charge any type of sales load. Not every type of shareholder fee is a “sales load”,
however, and a no-load fund may charge fees that are not sales loads. (No-load funds also charge operating expenses.)

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14. Operating Expenses – Costs a fund incurs in connection with running the fund, including management fees, 12b-1 fees and
other expenses.

15. Portfolio – Individual’s or entity’s combined holdings of stocks, bonds or other securities and assets.

16. Prospectus – Written document that contains information about the mutual fund’s costs, investment objectives, risks and
performance. Prospectuses may be obtained from the mutual fund company (through its website or by phone or mail).

17. Rights of Reinvestment (Reinstatement) – Allows clients to reinvest proceeds from a redemption, dividend payment or
capital distribution back into the same fund or fund family’s shares without a sales charge or to recoup all or part of any
sales charge paid (i.e., contingent deferred sales charge (“CDSC”) on such shares with other holding privileges, provided the
reinvestment occurs within the period of time stated in the prospectus (e.g., 60 days of the redemption).

18. Related Accounts – Used in factoring breakpoint discounts, and defined differently by each mutual fund, related accounts
are those owned by family members in the same household (i.e., spouse and minor children).

19. Rights of Accumulation (ROA) – Privilege that allows you to combine your family’s existing account balances and with new
share purchases to qualify for breakpoint discounts.

20. Sales Charge (or “Load”) – Amount that investors pay when they purchase (front-end load) or redeem (back-end load)
shares in a mutual fund, similar to a commission.

21. Shareholder Service Fees – Fees paid to persons to respond to investor inquiries and provide investors with information
about their investments. See also “12b-1 fees”.

22. Statement of Additional Information (SAI) – Conveys information about an open- or closed-end fund that is not
necessarily needed by investors to make an informed investment decision, but that some investors find useful. Although
funds are not required to provide investors with an SAI, they must send the SAI upon request and without charge. Also
known as “Part B” of the fund’s registration statement.

23. Total Annual Fund Operating Expense – Total of a fund’s annual fund operating expenses, expressed as a percentage of
the fund’s average net assets, which can be found in the fund’s fee table in the prospectus.

Investing involves market risk, including the possible loss of principal. There is no guarantee that investment objectives will be
achieved. Asset allocation/diversification does not guarantee a profit or protect against a loss.
Investors should carefully consider the investment objectives and risks, as well as charges and expenses of the fund
before investing. To obtain a prospectus, visit the fund company’s or insurance company’s Web site. The prospectus
contains this and other information about the fund. Read the prospectus carefully before investing.
The information expressed is being provided for informational and educational purposes only and is not intended to
provide, and should not be relied on for accounting, legal or tax advice. It is not intended to provide specific advice or
recommendations for any individual. You should carefully consider your needs and objectives before making any decisions.

Important information about your investments and potential conflicts of interest

Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an
actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P.
Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P.
Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge
fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2)
when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan
receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives

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payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment
products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other
clients or when J.P. Morgan acts for its own account.
Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process
by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we
believe fit our asset allocation goals and forward looking views in order to meet the portfolio’s investment objective.
As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies
will be high (in fact, up to I00 percent) in strategies such as, for example, cash and high-quality fixed income, subject to
applicable law and any account-specific considerations.
While our internally managed strategies generally align well with our forward looking views, and we are familiar with the
investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan
receives more overall fees when internally managed strategies are included.

Important information about exchange traded funds

ETFs are marketable securities that are interests in registered funds, and are designed to track, before fees and expenses, the
performance or returns of a relevant basket of assets, usually an underlying index. Unlike mutual funds, an ETF trades like
a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs
typically have higher daily liquidity and lower fees than mutual fund shares.
ETFs do not fully replicate their underlying indices and may hold securities different from those included in their underlying
indices. Physical replication and synthetic replication are two of the most common structures used in the construction of
ETFs. Physically replicated ETFs buy all or a representative portion of the underlying securities in the index that they track.
In contrast, some ETFs do not purchase the underlying assets but gain exposure to them by use of swaps or other derivative
instruments.
In addition to the general risks of investing in funds, there are specific risks to consider with respect to an investment in
these passive investment vehicles. ETF performance may differ from the performance of the applicable index for a variety of
reasons. For example, ETFs incur operating expenses and portfolio transaction costs not incurred by the benchmark index,
may not be fully invested in the securities of their indices at all times, or may hold securities not included in their indices.
In addition, corporate actions with respect to the equity securities underlying ETFs (such as mergers and spin-offs) may
impact the variance between the performances of the funds and applicable indices. Passive investing differs from active
investing in that managers are not seeking to outperform their benchmark. As a result, managers may hold securities that are
components of their underlying index, regardless of the current or projected performance of the specific security or market
sector. Passive managers do not attempt to take defensive positions based upon market conditions, including declining
markets. This approach could cause a passive vehicle’s performance to be lower than if it employed an active strategy.
ETF shares are bought and sold in the secondary market at market prices. Although ETFs are required to calculate their
net asset values (NAV) on a daily basis, at times the market price of an ETF’s shares may be more than the NAV (trading at a
premium) or less than the NAV (trading at a discount). Given the differing nature of the relevant secondary markets for ETFs,
certain ETFs may trade at a larger premium or discount to NAV than shares of other ETFs depending on the markets where
such ETFs are traded. The risk of deviation from NAV for ETFs generally is heightened in times of market volatility or periods
of steep market declines. For example, during periods of market volatility, securities underlying ETFs may be unavailable
in the secondary market, market participants may be unable to calculate accurately the NAV per share of such ETFs and
the liquidity of such ETFs may be adversely affected. This kind of market volatility may also disrupt the ability of market
participants to create and redeem shares in ETFs. Further, market volatility may adversely affect, sometimes materially,
the prices at which market participants are willing to buy and sell shares of ETFs. As a result, under these circumstances,
the market value of shares of an ETF may vary substantially from the NAV per share of such ETF, and the Client may incur
significant losses from the sale of its ETF shares. In addition, for all of the foregoing reasons, the performance of any ETF may
not correlate with the performance of its underlying index as well as the NAV per share of such ETF.
Trading in the shares of one or more ETFs may be halted due to market conditions or for reasons that, in the view of the
exchange on which such shares are traded, make trading in such shares inadvisable. In addition, trading in the shares of ETFs
may be subject to trading halts caused by extraordinary market volatility pursuant to the relevant exchange’s “circuit breaker”
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rules. If a trading halt or unanticipated early closing of an exchange occurs, it may not be possible to purchase or sell shares
of an ETF. There can be no assurance that the requirements of an exchange necessary to maintain the listing of an ETF will
continue to be met or will remain unchanged. While shares of ETFs are generally listed on an exchange, there can be no
assurance that active trading markets for the shares of any ETF will be maintained.

Important information and changes about Money Market Mutual Funds (October 2016)
In October 2016, money market fund reforms adopted by the U.S. Securities and Exchange Commission went into effect.
These reforms are intended to reduce the potential risks to money market funds during periods of extreme market stress.
Money market funds fall into three general categories: Government, Retail and Institutional. During periods of market
turmoil, when certain triggers are met and depending into which category they fall, money market funds could be subject to
one or more of the following:
hh Redemption Gates: Retail and Institutional money market funds may place temporary limits on your ability to redeem
shares for up to 10 business days in a 90-day period. These redemption gates are designed to ensure orderly redemptions
during extreme market stress. This means that, if these extreme market conditions occur, you could be temporarily
prevented from selling your money market fund shares.

hh Liquidity Fees: Retail and Institutional money market funds may impose fees of up to 2% (depending on market conditions
and the fund board’s determination) on the redemption of money market fund shares. The liquidity fee would be held by
the fund to help support liquidity levels by transferring the cost of redemption from the fund to redeeming shareholders.
This means that while you could redeem your shares, the redemption of your shares would be subject to a fee. For
example, if a money market fund imposed a 1% liquidity fee, if you sought to redeem $1,000, you would be charged $10 by
the fund, so the total amount of your redemption proceeds would be $990.

hh Floating Net Asset Value (NAV): Institutional (but not Government or Retail) money market funds will be required to value
their portfolio securities using current market prices, which means that your fund shares may be priced at more or less
than $1 when the value of the securities in the fund fluctuate.

What you should know?

hh Government money market funds, which invest at least 99.5% of their assets in cash, government securities and/or
repurchase agreements collateralized with cash or government securities, are NOT subject to a redemption gate, liquidity
fee or floating NAV; however, a Government money market fund MAY reserve the ability to impose redemption gates and/
or liquidity fees as long as the fund discloses this to you.

hh Retail money market funds, the beneficial owners of which are limited to natural persons (e.g. individuals, but not
corporations), are subject to the possible imposition of a redemption gate and liquidity fee, but NOT a floating NAV.

hh Institutional money market funds, which are any funds that do not qualify as Government or Retail, ARE subject to the
possible imposition of a redemption gate and liquidity fee and ARE subject to a floating NAV.

© 2018 JPMorgan Chase & Co.

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