PORTFOLIO INSIGHTS 2021

PRINCIPLES
FOR EFFECTIVE
PORTFOLIO
CONSTRUCTION

A DISCIPLINED APPROACH
TO BUILDING STRONGER
PORTFOLIOS
AS WE’VE TRANSITIONED INTO A NEW MARKET CYCLE, IT HAS NEVER

BEEN MORE IMPORTANT TO BUILD PORTFOLIOS THAT HAVE GREATER

POTENTIAL TO CAPTURE OPPORTUNITIES, WEATHER DOWNTURNS AND

ACHIEVE LONG-TERM GOALS. THIS BOOKLET PROVIDES THE

ESSENTIALS OF PORTFOLIO CONSTRUCTION; WITHIN IT YOU WILL

DISCOVER KEY STRATEGIES AND A SYSTEMATIC FRAMEWORK TO BUILD

PORTFOLIOS THAT HELP SOLVE INVESTOR NEEDS.

LET’S SOLVE IT.

PRINCIPLES
FOR EFFECTIVE
PORTFOLIO
CONSTRUCTION
1 START WITH AN ASSET ALLOCATION PLAN

2 DIVERSIFY TO SMOOTH OUT THE RIDE

3 REBALANCE TO STAY THE COURSE

4 USE THE 4 Ps FRAMEWORK TO SELECT INVESTMENTS

5 CHOOSING THE APPROPRIATE INVESTMENT IS KEY

6 LOOK BEYOND TOTAL RETURNS

7 PUT IT ALL TOGETHER

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

1 START WITH AN ASSET ALLOCATION PLAN

Begin at the end—What’s the goal?

A portfolio should be a reflection of each investor’s unique goals.

• What are they trying to accomplish?

• When will they need the money?
• How much risk are they willing to take to achieve their objectives?

Asset allocation has historically been the primary driver of a portfolio’s performance and risk.
Answering these questions will determine how to properly allocate across asset classes and
help investors achieve their goals.

4 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 Building a strategic asset allocation model

What are your goals? When will you need the money?

COLLEGE RETIREMENT
STRATEGIC ASSET
ALLOCATION MODELS*
BUYING HOME EQUITY / FIXED INCOME

20-80 50-50 80-20

RETURN 5.74% 7.53% 9.15%

RISK 4.43% 7.91% 11.67%

What is your risk tolerance level?

LOW HIGH

*10-year historical results as of 12/31/2020. Source: Bloomberg Barclays, Merrill Lynch, Morgan Stanley, MSCI, Russell, J.P. Morgan Asset Management Multi-Asset Solutions. U.S. large cap: Russell
1000 Growth Index® & Russell 1000 Value Index®; U.S. mid/small cap: Russell 2500 Index®; U.S. REITs: Morgan Stanley REIT Index; developed markets equity: MSCI® EAFE Index; emerging markets
equity: MSCI Emerging Markets IndexSM; U.S. investment grade: Bloomberg Barclays U.S. Aggregate Index; U.S. high yield: Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond
Index; emerging markets debt: J.P. Morgan EMBI Global Index. The model performance shown is hypothetical and for illustrative purposes only and does not represent the
performance of a specific investment product. The performance presented does not reflect the deduction of expenses associated with a fund, such as investment management fees and fund
expenses, including sales charges if applicable. Past performance is no guarantee of future results. For illustrative purposes only.

5 DISCIPLINED APPRO AC H TO BUILDING S TR ONGER PORTFOLI OS

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

2 DIVERSIFY TO SMOOTH OUT THE RIDE

Diversification works
The last 15 years have provided a volatile and tumultuous ride for investors, with a global
financial crisis, numerous geopolitical conflicts, a global pandemic and two major market
downturns.

Yet despite these difficulties, a well-diversified portfolio of stocks and bonds has weathered the
market ups and downs. Utilizing a balanced asset allocation can smooth out the ride for clients,
which will help keep them invested. And the key to any good investment plan is being able to
stay invested, to ultimately achieve your long-term goals.

Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.

6 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 The power of diversification
2006 - 2020
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ann. Vol.
EM Fixed EM Small Small EM Large Small Large EM
REITs REITs REITs REITs REITs REITs Cash
Equity Income Equity Cap Cap Equity Cap Cap Cap Equity
35.1% 39.8% 5.2% 79.0% 27.9% 8.3% 19.7% 38.8% 28.0% 2.8% 21.3% 37.8% 1.8% 31.5% 20.0% 9.8% 23.3%

EM High Small Fixed High Large Large Large High DM Fixed EM Small
Comdty. Cash REITs REITs
Equity Yield Cap Income Yield Cap Cap Cap Yield Equity Income Equity Cap
32.6% 16.2% 1.8% 59.4% 26.9% 7.8% 19.6% 32.4% 13.7% 1.4% 14.3% 25.6% 0.0% 28.7% 18.7% 8.9% 23.1%

DM DM Asset DM EM High EM DM Fixed Fixed Large Large Small Large High Small
REITs
Equity Equity Alloc. Equity Equity Yield Equity Equity Income Income Cap Cap Cap Cap Yield Cap
26.9% 11.6% -25.4% 32.5% 19.2% 3.1% 18.6% 23.3% 6.0% 0.5% 12.0% 21.8% -4.0% 25.5% 18.4% 7.5% 22.6%

Small Asset High Large DM Asset Asset Small High DM Asset DM

REITs Comdty. Cash Comdty. REITs
Cap Alloc. Yield Cap Equity Alloc. Alloc. Cap Yield Equity Alloc. Equity
18.4% 7.1% -26.9% 28.0% 16.8% 2.1% 17.9% 14.9% 5.2% 0.0% 11.8% 14.6% -4.1% 22.7% 10.6% 7.1% 19.1%

Large Fixed Small Small Large Small High Small DM EM Asset Large Asset DM EM
Cash Comdty.
Cap Income Cap Cap Cap Cap Yield Cap Equity Equity Alloc. Cap Alloc. Equity Equity
15.8% 7.0% -33.8% 27.2% 15.1% 0.1% 16.3% 7.3% 4.9% -0.4% 11.6% 14.6% -4.4% 19.5% 8.3% 6.9% 18.8%

Asset Large Large High Asset Large Asset High Asset EM Fixed Asset Large
Comdty. REITs Cash REITs
Alloc. Cap Cap Yield Alloc. Cap Alloc. Yield Alloc. Equity Income Alloc. Cap
15.3% 5.5% -35.6% 26.5% 14.8% -0.7% 16.0% 2.9% 0.0% -2.0% 8.6% 10.4% -5.8% 18.9% 7.5% 6.7% 16.7%

High Large Asset Asset Small Asset High High Asset Small High High DM High
Cash Cash REITs
Yield Cap Alloc. Alloc. Cap Alloc. Yield Yield Alloc. Cap Yield Yield Equity Yield
13.7% 4.8% -37.0% 25.0% 13.3% -4.2% 12.2% 0.0% 0.0% -2.7% 8.3% 8.7% -11.0% 12.6% 7.0% 5.0% 12.2%

High DM DM Fixed Fixed EM Small Fixed Fixed Fixed Fixed Asset

Cash REITs Comdty. Comdty. Cash
Yield Equity Equity Income Income Equity Cap Income Income Income Income Alloc.
4.8% 3.2% -37.7% 18.9% 8.2% -11.7% 4.2% -2.0% -1.8% -4.4% 2.6% 3.5% -11.2% 8.7% 0.5% 4.5% 11.8%

Fixed Small DM Fixed Fixed EM DM EM DM DM Fixed

Comdty. Cash Comdty. Comdty. Comdty. Cash
Income Cap Equity Income Income Equity Equity Equity Equity Equity Income
4.3% -1.6% -43.1% 5.9% 6.5% -13.3% 0.1% -2.3% -4.5% -14.6% 1.5% 1.7% -13.4% 7.7% -3.1% 1.2% 3.2%

EM EM EM
Comdty. REITs Cash Cash Comdty. Comdty. Comdty. Comdty. Cash Cash Cash REITs Comdty. Cash
Equity Equity Equity
2.1% -15.7% -53.2% 0.1% 0.1% -18.2% -1.1% -9.5% -17.0% -24.7% 0.3% 0.8% -14.2% 2.2% -5.1% -4.0% 0.8%

Source: Barclays, Bloomberg, FactSet, MSCI, NAREIT, Russell, Standard & Poor’s, J.P. Morgan Asset Management.
Large cap: S&P 500, Small cap: Russell 2000, EM Equity: MSCI EME, DM Equity: MSCI EAFE, Comdty: Bloomberg Commodity Index, High Yield: Bloomberg Barclays Global HY Index, Fixed
Income: Bloomberg Barclays US Aggregate, REITs: NAREIT Equity REIT Index, Cash: Bloomberg Barclays 1-3m Treasury. The “Asset Allocation” portfolio assumes the following weights: 25%
in the S&P 500, 10% in the Russell 2000, 15% in the MSCI EAFE, 5% in the MSCI EME, 25% in the Bloomberg Barclays US Aggregate, 5% in the Bloomberg Barclays 1-3m Treasury, 5% in the
Bloomberg Barclays Global High Yield Index, 5% in the Bloomberg Commodity Index and 5% in the NAREIT Equity REIT Index. Balanced portfolio assumes annual rebalancing. Annualized
(Ann.) return and volatility (Vol.) represents period from 12/31/05 to 12/31/20. Please see disclosure page at end for index definitions. All data represents total return for stated period. The
“Asset Allocation” portfolio is for illustrative purposes only. Past performance is not indicative of future returns.
Guide to the Markets – U.S. Data are as of December 31, 2020.
7 DISCIPLINED APPRO AC H TO BUILDING STR ONGER PORTFOLI OS
 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

3 REBALANCE TO STAY THE COURSE

Stay on course; don’t “set it and forget it”

As markets shift, so do portfolio allocations. Without rebalancing, investors can gradually become
overexposed to unwanted risks. In this simple illustration, over just the 1st quarter 2020, the 60%
equity and 40% fixed income portfolio left untouched drifted to become a 51% equity and 49% fixed
income portfolio.
Create a rebalancing policy
Some portfolios are rebalanced according to a set schedule, others after major market moves and still
others when assets stray from original targets. What’s most important is creating a formal rebalancing
policy and following it faithfully.

8 DISCIPLINED APPROAC H TO BUILDING S TR ONGER PORTFOLI OS

 Rebalancing to stay the course

51%
60%
Equity
Equity
JANUARY MARCH
1st, 2020 20th, 2020
40%
49%
Bond
Bond

Rebalancing on schedule to help The 60-40 portfolio has drifted

maintain strategic allocation 9% in just one quarter

KEY TAKEAWAYS
24% of investors’ managing portfolios didn’t rebalance at all during the COVID-19 volatility1
Now is a good time to rebalance back to your strategic asset allocation and consider:
 Maintain portfolio protection – consider lower beta equities or equity alternatives
 Capitalize on the volatility – consider asset classes that may be undervalued like value and international equities

Source: J.P. Morgan Asset Management. Stocks measured by MSCI ACWI, bonds measured by Bloomberg Barclays U.S. Aggregate Bond Index. Indices are used for illustrative purposes only, are
unmanaged, include the reinvestment of dividends, and do not reflect the impact of management or performance fees. Indices do not represent actual individual accounts. One cannot invest
directly in an index. Past performance is no guarantee of future results.
1 BlackRock Investments, LLC, May 2020.

9 DISCIPLINED APPROAC H TO BUILDING S TR ONGER PORTFOLI OS

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

4 USE THE 4 Ps FRAMEWORK TO SELECT INVESTMENTS

There are many factors to consider

A framework for selecting investments based on the four Ps can help you better understand
what you own and what you should expect:

1. People—Who’s managing the strategy? What are their experiences and capabilities?
2. Philosophy—What is the strategy trying to achieve? For example, is it seeking
long-term growth? Current income? A combination of both?
3. Process—How does the strategy pursue its objectives and invest shareholder money?
4. Performance—When would this strategy likely underperform/outperform? How much
risk was taken relative to returns?

10 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 The four Ps framework to select investments

What is the process for identifying and selecting investments for your portfolios?

PEOPLE PHILOSOPHY

Who manages the strategy? What are the core investment beliefs?
How long has the current team been in place? What does the strategy seek to do?
What is the team’s experience? How clearly is the investment philosophy
conveyed?
What are the team’s capabilities and resources?
Is this a benchmark-aware or -agnostic
MANAGER approach?
SELECTION
PERFORMANCE PROCESS

What are the appropriate ways to evaluate How does the team invest to meet its
performance? objective?
Is the track record lined to the team and process? What is the strategy’s investment style?
What are the key return/risk drivers? What are the portfolio characteristics?
When would this strategy likely under/outperform? What is the risk management approach?

For illustrative purposes only.

11 DISCIPLINED APPRO AC H TO BUILDING STR ONGER PORTFOLI OS

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

5 CHOOSING THE APPROPRIATE INVESTMENT IS KEY

Big gaps between top and bottom performers

Given the wide array of approaches available, mutual funds and ETFs in the same category may deliver
vastly different results. This chart shows average annual returns for the top performers, bottom
performers and largest market cap-weighted passive option within each investment category.

In the large growth category, for example, the gap between the top and bottom performers was a
sizable 4.36% difference in annual return. Compounded over time, this can have a big impact on a
portfolio’s dollar value and a client’s ability to achieve their goals.

12 DISCIPLINED APPROACH TO BUILDING STR ONGER PORTFOLI OS

 There can be a huge separation between top and bottom performers
15-year portfolio return dispersion*

13.43%
♦ 10th percentile
13%  90th percentile
 Market cap-weighted ETF
11%

9.84%
9% 9.07% 9.32%
8.65% 8.90%
8.52%

7%
6.28% 6.25% 6.41%
5.56%
5%
4.72%
3.93%
3.40%
3%

1%
Large Value Large Growth Mid-Cap Blend Small-Cap Blend Foreign Large Emerging Options-based
Blend Markets
Source: Morningstar as of 12/31/2020. *Represents average annual portfolio return dispersion between the 10th and 90th percentile over a 15-year period for each Morningstar category
including mutual funds and ETFs. The ETFs listed above are the largest by AUM within their category. World Allocation not shown as it does not currently have any prevalent ETFs with
significant AUM. ETF 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.
ETFs and Mutual Funds are different investment vehicles. ETFs are funds that trade like other publicly traded securities. Similar to shares of an index mutual fund, each ETF share represents an
ownership interest in an underlying portfolio of securities and other instruments typically intended to track a market index. Unlike shares of a mutual fund, shares of an ETF may bought and
sold intraday. This information is shown for illustrative purposes only, does not reflect actual investment results, is not a guarantee of future results and it not a recommendation. The
performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. 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 original cost. Current performance may be higher or lower than the performance data shown.

13 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

6 LOOK BEYOND TOTAL RETURNS

Dig deeper into performance

Of the four Ps, investors tend to focus most closely on performance. But evaluating performance
involves much more than simply looking at recent returns. Other factors to consider include
consistency, risk and performance relative to benchmarks and peers.

This page summarizes the ABC’s of investment selection, a simple framework that can be used to gain a
deeper understanding of performance. Along with guidance from a financial professional, they can
help investors assess investments, compare similar strategies and make informed decisions.

14 DISCIPLINED APPROACH TO BUILDING STR ONGER PORTFOLI OS

 The ABC’s of investment selection

Clients

A B C
COST RETURN CONSISTENCY RISK
NET EXPENSE RATIO ALPHA/EXCESS BATTING AVERAGE CAPTURE RATIOS
Cost of ownership for a Reflects a fund’s total Measures the manager’s Percentage of the
Mutual Fund or ETF return above or below a ability to meet or beat the benchmark’s return that
benchmark benchmark consistently was “captured” in rising
and falling markets

A Investment delivers positive excess returns above the benchmark

B Investment has a batting average of 50% or great

C Investment has a positive spread between up/down capture ratio

This information is shown for illustrative purposes only, does not reflect actual investment results, is not a guarantee of future results and is not a recommendation.

15 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 PRINCIPLES FOR EFFECTIVE PORTFOLIO CONSTRUCTION

7 PUT IT ALL TOGETHER

The whole is greater than the sum of its parts

Portfolio construction and investment selection is an ongoing process. To build a portfolio that can
withstand market ups and downs, all six components in the process must work together to achieve the
desired result. Investors should also understand how these six components inform the overall process
and the essential roles they play in building stronger portfolios.

16 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

 Portfolio construction process

START
with an asset allocation plan

LOOK DIVERSIFY
beyond total returns to smooth out the ride

CHOOSING REBALANCE
the appropriate investment is key to stay the course

USE THE 4Ps

framework to select investments

This information is shown for illustrative purposes only, does not reflect actual investment results, is not a guarantee of future results and is not a recommendation.

17 DISCIPLINED APPROACH TO BUILDING STR ONGER PORTFOLI OS

 Methodology

J.P. Morgan Multi-Asset Solutions Model Portfolios

J.P. Morgan Multi-Asset Solutions Model Portfolios Asset Class Underlying Asset Class Indices
J.P. Morgan Model Portfolios are designed to help investors make thoughtful, well-informed
U.S. Large Cap Growth Russell 1000 Growth
decisions in creating multi-asset portfolios. They are based upon our Multi-Asset Solutions
research team’s asset allocation views, which are the product of a rigorous and disciplined U.S. Large Cap Value Russell 1000 Value
process that integrates:

Equities
U.S. Mid/Small Cap Russell 2500
 Qualitative insights that encompass macro-thematic insights, business cycle views, non-
US REITs MSCI US REIT
systematic inputs and market dislocations
 Quantitative analysis that considers market inefficiencies, intra- and cross-asset class Developed Mkts Equity MSCI EAFE
risk-return models, relative value, market directional strategies and systematic factor
analysis Emerging Market Equity MSCI EM
 Strategy Summits and ongoing dialogue in which research and investor teams debate,
U.S. Investment Grade Bloomberg Barclays US Aggregate Bond
challenge and develop the firm’s asset allocation views
Bloomberg Barclays US Corp High Yield 2% Issuer
U.S. High Yield
These views are translated into two series of risk-based model portfolios, one version Cap

Fixed Income
focusing on traditional asset classes and another that includes alternative strategies. Further Emerging Markets Debt JPM EMBI Global Diversified
they range from conservative to aggressive allocations (see following pages for model
portfolio allocation details). Muni Investment Grade Bloomberg Barclays Municipal
Muni High Yield Bloomberg Barclays High Yield Muni
The J.P. Morgan Multi-Asset Solutions Model Portfolios are updated on a quarterly basis and
are rebalanced on a monthly basis. Each portfolio is constructed using a blend of the TIPS Bloomberg Barclays US Treasury US TIPS
underlying asset class indices shown in the table on the right for performance. Additionally
Cash USTREAS T-Bill Auction Ave 3 Mon
Indices or ETFs may be used for portfolio-level data.
Equity Alternatives HFRX Equity Hedge Index

Alternative
Fixed Income Alternative Barclays US Aggregate Bond

Core Diversifiers HFRX Global Hedge Fund Index

18 DISCIPLINED APPROACH TO BUILDING S TR ONGER PORTFOLI O S

 Methodology

Underlying asset class indices

The performance of the indices does not reflect the deduction of expenses associated with a Bloomberg Barclays US Corp High Yield 2% Issuer Capped – Index is an unmanaged
fund, such as investment management fees. By contrast, the performance of the Funds/models index that tracks the performance of fixed rate non-investment grade debt that are dollar
reflect the deduction of fund expenses, including sales charges if applicable. Total return denominated and non-convertible with a maximum allocation of 2% to any one issuer.
figures assume the reinvestment of dividends. Investors cannot invest directly in an indices.
JPM EMBI Global Diversified – Index is an unmanaged index that tracks performance of
Russell 1000 Value – Index is an unmanaged index that measures the performance of the U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-
companies within the Russell 1000 with lower price-to-book ratios and lower forecasted growth sovereign entities. The index caps maximum weight to any country in the index at 10%.
values.
Bloomberg Barclays US Municipal – Index is an unmanaged index composed of USD-
Russell 1000 Growth – Index is an unmanaged index that measures the performance of the denominated long-term tax exempt bonds with a minimum credit rating of Baa. The index
companies within the Russell 1000 with higher price-to-book ratios and higher forecasted has four main sectors: state and local general obligation bonds, revenue bonds, insured
growth values. bonds and pre-refunded bonds.
Russell 2500 – Index is an unmanaged index that measures the performance of the small to Bloomberg Barclays High Yield Municipal – Index is an unmanaged index that tracks the
mid-cap segment of the U.S. equity universe, commonly referred to as "smid" cap. The Russell high yield portion of the USD-denominated long-term tax exempt bond market. The index
2500 Index is a subset of the Russell 3000® Index. It includes approximately 2500 of the has four main sectors: state and local general obligation bonds, revenue bonds, insured
smallest securities based on a combination of their market cap and current index membership. bonds and pre-refunded bonds.
MSCI US REIT – Index is an unmanaged index that is a free float-adjusted market Bloomberg Barclays US Treasury US TIPS – Index is an unmanaged index that tracks
capitalization index that is comprised of equity REITs. The index is based on MSCI USA total returns of all publicly issued, U.S. Treasury inflation-protected securities that have at
Investable Market Index (IMI), its parent index, which captures large, mid and small cap least one year remaining to maturity, are rated investment grade and have $250 million or
securities. more of outstanding face value.
MSCI EAFE – Index is an unmanaged index. EAFE (Europe, Australia, Far East) Index (net of USTREAS T-Bill Auction Ave 3 Month – Index is an unmanaged index that measures the
foreign withholding taxes) is a free float-adjusted market capitalization weighted index that is performance of the average investment rate of US T-Bills securities with the maturity of 3
designed to measure the equity market performance of developed markets, excluding the U.S. months.
and Canada.
HFRX Equity Hedge Index – Index designed to be representative of Equity Hedge
MSCI EM – Index is an unmanaged index, (net of foreign withholding taxes) is a free float- strategies, which maintain positions both long and short in primarily equity and equity
adjusted market capitalization weighted index that is designed to measure the equity market derivative securities.
performance of emerging markets.
HFRX Global Equity Hedge Fund Index – Index designed to be representative of the
Morgan Stanley US REIT – Index is a capitalization-weighted index of the most actively traded overall composition of the hedge fund universe, including but not limited to, convertible
real estate investment trusts (REITs), designed to measure real estate equity performance. arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro,
merger arbitrage and relative value arbitrage. These strategies are asset weighted based
Bloomberg Barclays US Aggregate Bond – Index is an unmanaged index that represents
on the distribution of assets in the hedge fund industry.
securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S.
investment grade fixed rate bond market, with index components for government and corporate
securities, mortgage pass-through securities and asset-backed securities.

19 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI O S

 Methodology

*Allocation changes are expressed in percentage point terms and reflect a change in view since the prior Strategy Summit. Percents may not sum to 100% due to rounding. † Strategic
allocations shown in the left column for each model portfolio do not include this quarter’s tactical shifts. The current allocation for a given model would equal the sum of the strategic
allocation plus the tactical shift. Source: J.P. Morgan Asset Management Multi-Asset Solutions; assessments are made using data and information up to March 2021. For illustration purposes
only. Allocation percentages are subject to market and economic conditions and may be changed without notice. Diversification does not guarantee investment returns and does not
eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.

20 DISCIPLINED APPRO AC H TO BUILDING STR ONGER PORTFOLI OS

 N OT E S

21 DISCIPLINED APPRO AC H TO BUILDING S TR ONGER PORTFOLI OS

 N OT E S

22 DISCIPLINED APPROAC H TO BUILDING STR ONGER PORTFOLI OS

FOR MORE INFORMATION ABOUT THE PORTFOLIO INSIGHTS PROGRAM,
PLEASE VISIT: jpmorganfunds.com/insights
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