1. FOR PROFESSIONAL CLIENTS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION Market Insights – the only guide you’ll ever need July 2014

2. 1 Agenda Introduction to the Fusion Fund range Risk rated = JPM asset allocation How Guide to the Markets can help you help your clients Key investment themes

3. 2 Learning objectives Introduce and differentiate the Fusion Fund range Introduce the J.P. Morgan Asset Management Guide Understand a diversified approach to generating an income from clients’ portfolios Understand investing in selected companies rather than economies Holding a well-balanced portfolio Understand the ability to demonstrate to clients investment expertise, knowledge and understanding of their financial goals Create client messages to help them understand the importance of a well balancedportfolio Communicate to clients that your investment strategies are designed to take best advantage of appropriate levels of risk

4. 3 Introducing the JPM Fusion Fund range Risk graded 3-7 by Distribution Technology Whole of market and actively managed Investing in a range of active and passive funds partnering with the Private Bank’s manager selection team. Offering diversification with access to a range of asset classes with a geographical spread Typical maximum exposure to equities/equity linked securities JPM Fusion Funds IncomeConservativeBalancedGrowthGrowth Plus Distribution Technologies’ (DT) assessment is independent of J.P. Morgan published risk profiles. The DT Dynamic Planner is a risk profiling tool which positions funds within a volatility scale of 1-10. It is reviewed on a regular basis at the discretion of DT and is subject to change without notice. The DT Rating is based on DT’s investment planning assumptions, however the Fund should still be accessed through the Risk Reward Profile in the Key Investor Information Document (KIID).

5. 4 How resilient is the provider? J.P. Morgan Asset Management Amongst the global leaders in investment and wealth management with £965 billion AUM (as at 31/12/13) Over 13 years support and commitment to the IFA market Thought Leadership bringing rich insights to the adviser market J.P. Morgan Private Bank Firm of choice - Over 160 years managing investments for the world’s wealthiest individuals Global presence - Serve clients from offices in 15 countries with 5,600 employees worldwide Exceptional breadth and depth of wealth management solutions, including investing, wealth structuring, philanthropy, banking and credit

6. 5 J.P. Morgan Private Bank Firm of choice – Over 160 years managing investments for the world’s wealthiest individuals Global presence - Serve clients from offices in 15 countries with 5,600 employees worldwide Exceptional breadth and depth of wealth management solutions, including investing, wealth structuring, philanthropy, banking and credit Fund Manager Selection Team – Team of over 40 individuals based globally Source: J.P. Morgan May 2014

7. 6 Low commonality with peer group Source: February 2014 factsheets of funds. The information in this case study is intended as an example only and should not be construed as advice, it may not be suitable for your particular circumstances and if you are unsure of the suitability of any investment you should seek financial advice. Past performance is not a guarantee of the future. The opinions and views expressed here are those held by the author as at date of this document, which are subject to change and are not to be taken as or construed as investment advice. J.P. Morgan Asset Management may or may not hold positions on behalf its clients in any or all of the aforementioned securities. Competitor Versus JPM Fusion Growth Plus Henderson Multimanager Active FundOne holding MyFolio Multimanager V FundZero commonality Cazenove Multi-Manager Diversity Tactical FundOne holding F&C Navigator SelectZero commonality Jupiter Merlin GrowthZero commonality

8. 7 Fusion Funds performance Source Lipper for Investment Management. Performance information is for the C (Acc) shares for each of the Fusion Funds since inception on 18 th March 2013 and calculated on a NAV basis. Performance data is net of fees. Benchmark information taken from IPB Performance reporting. Full benchmark information can be found at http://am.jpmorgan.co.uk/investor/_documents/jpmorgan-fund-icvc-iii-pro-gben 01-04-14.pdf Volatility information taken from Lipper for IM. Data as of 18 th March 2014. Base currency of the Fusion Funds is GBP. Past performance is not an indication of future performance. * Fusion Income and Conservative sit in IMA 20-60% Shares, Fusion Balanced 40-85% Shares, Fusion Growth Plus sits in IMA Flexible Investment.http://am.jpmorgan.co.uk/investor/_documents/jpmorgan-fund-icvc-iii-pro-gben 01-04-14.pdf IncomeConservativeBalancedGrowthGrowth Plus Performance3.20%4.30%4.60%5.90%6.20% Benchmark2.86%3.60%4.32%5.50%6.33% IMA Sector*3.31% 5.07% 4.42% Volatility3.18%4.61%5.33%6.53%7.81%

9. 8 Adviser Portal: helping you deliver first class service Create bespoke reports in minutes, tailored to your clients’ investment objectives Material for prospective and existing clients Personalise reports with your own company logo and commentary Reports display market and fund commentary from the JPM Fusion Funds investment team Select from a variety of reporting frequency options Further support can be found in our detailed user-guide within the Support section of the portal www.jpmorgan.co.uk/adviserportal

10. 9 Guide to the Markets Guide to the Markets is : A collection of easy to use charts on global markets – Designed to help you explain market events and economic data to your clients supporting their investment decision making. Timely and relevant – The guide is released at the beginning of each quarter It does not offer opinions by itself, it is an illustrative tool Arms advisers with ideas and insights to be shared with their clients

11. 10 Insight materials Quarterly Perspectives Quarterly review of four key topics related to high- level macro economic themes Timely, yet also has enough shelf time to last for the full quarter Leverage slides from the Guide to help illustrate key points around each theme with clients Investment Discussions Two-page document primarily focused on specific asset classes Used to articulate and support basic investment cases Leverages slides from the Guide as examples of discussion points with end clients

12. 11 The J.P. Morgan Insights App A powerful way for you to illustrate an array of market and economic trends to clients. Inform your decisions using fully interactive content Deliver customised presentations that engage your clients Build a more meaningful client experience

13. 12 Global recovery – Insight from an alternative perspective PMI is a measure of manufacturing confidence based upon raw material inventories Heat mapping shows a picture of global recovery Developed markets particularly strong Top line – 86% of economies on positive territory Source: Markit, J.P. Morgan Asset Management. Heatmap colours are based on PMI relative to 50, which indicates expansion or contraction of the sector, for the time period shown. Expansion is percentage of 35 country universe covered by Markit with a PMI greater than 50 or a six month increase in the index greater than or equal to four. “Guide to the Markets - UK”. Data as at 31 March 2014.

14. 13 A turbo-boost for the UK market? Investment levels lagging the those seen in the previous three periods of recovery Low levels compared to pre- GFC High levels of corporate liquidity A return of investment may provide a turbo-boost to the UK market. Source: (All charts) ONS, FactSet, J.P. Morgan Asset Management. *Business investment is a sub component of gross fixed capital formation and measures investments made by businesses. **Start date for each period is peak prior to the beginning of the recession. “Guide to the Markets - UK”. Data as at 31 March 2014.

15. 14 Cyclical indicators in the US may re-accelerate The data indicated a sharp slowdown in both the housing market and the auto sector in the first quarter as the freezing weather in the US heavily disrupted parts of the economy. Toward the end of the quarter we began to witness a sharp acceleration in auto sales as pent up demand began to materialise. A key risk to consumer demand remains a rapid rise in US government bond yields and a subsequent increase in borrowing costs. Source: (Top left) BEA, FactSet, J.P. Morgan Asset Management. (Top and bottom right and bottom left) Census Bureau, FactSet, J.P. Morgan Asset Management. Capital goods orders deflated using the producer price index for capital goods. SAAR is seasonally adjusted annual rate. “Guide to the Markets - UK”. Data as at 31 March 2014.

16. 15 Emerging Markets – Is 7% Chinese GDP a concern? Chinese auto sales now outstrip the USA Continued growth trend with growth of the mass affluent middle classes in China Huge capacity for continued growth Source: (Top) BEA, China Automotive Information Network, J.P. Morgan Asset Management. (Bottom) World Bank, J.P. Morgan Asset Management. *Brazil and India as at 2009. SAAR is seasonally adjusted annual rate. “Guide to the Markets - UK”. Data as at 31 March 2014.

17. 16 Fixed Interest – The problem child? The data indicates the impact of a 1% rise in interest rates on various selected indices Poor returns in Sovereign and high grade corporate debt Diversification of client portfolios still a requirement Opportunity still remains in High Yield and EMD Source: (Both charts) Barclays, FactSet J.P. Morgan Asset Management. Fixed income sectors shown are provided by Barclays Capital and are represented by – Treasury UK: Barclays Sterling Aggregate Gilts Index; Floating Rate – Barclays US Floating Rate Notes (BBB); IG credit: Barclays Global Aggregate – Corporates Index; High yield: Barclays Global High Yield Index; EMD sovereign ($): Barclays Emerging Markets – Sovereigns index; EMD corporate ($): Barclays Emerging Markets – Corporates Index; EMD sovereign (LC): Barclays Emerging Market Local Currency Government Index. Change in bond price is calculated using both duration and convexity.

18. 17 Interest Rates and Equities With higher rates on the horizon the chart shows how rising interest rates historically relate to equity markets in the US and Europe. 10 Year Treasury yields are some way off the point at which this relationship has become negative. History points to a positive relationship potentially continuing for some time. Source: Standard & Poor’s, US Treasury, MSCI, FactSet, J.P. Morgan Asset Management. Returns are based on price index only and do not include dividends. “Guide to the Markets - UK”. Data as at 31 March 2014.

19. 18 Annual Returns and Intra-year Declines The chart shows the FTSE All Share back to 1986, the largest in- year fall and the year-end result. 3 years in 4 have finished with a positive result - sometimes even after significant in-year corrections. If equities are appropriate for clients it's important to stay invested. Source: FTSE, FactSet, J.P Morgan Asset Management. Returns are based on price only and do not include dividends. Intra-year decline refers to the largest market fall from peak to trough within a short- term period during the calendar year. Returns shown are calendar years from 1986 to 2013. “Guide to the Markets - UK”. Data as at 31 March 2014.

20. 19 How dynamic is the investment process? Source: FTSE, MSCI, Barclays, Dow Jones/UBS, FactSet, J.P. Morgan Asset Management. Returns are in base currency of the index. Annualised period covers 2004 to 2013. Govt bonds: Barclays Global Aggregate Government Treasuries; HY bonds: Barclays Global High Yield; EMD: Barclays Emerging Markets (USD); IG bonds: Barclays Global Aggregate – Corporates; Cmdty: DJ UBS Commodity; REITS: FTSE NAREIT All REITS; World ex UK: MSCI World ex UK; All share: FTSE All Share; Cash: JP Morgan Cash United Kingdom (3M). Portfolio; 20%: All Share; 10%: government bonds; 15%: IG bonds; 15%: EM equities; 10%: World ex UK equities; 10%: HY bonds; 5%: EMD; 5%: commodities; 5%: cash; and 5%: REITS. “Guide to the Markets - UK”. Data as at 31 March 2014.

21. 20 Closing comments JP Morgan Private Bank - A service usually reserved for clients with over £10m to invest. Real differentiation through fund selection and asset allocation. – Access to funds not available to retail investors. Bespoke portfolio reporting service. JPM Fusion Funds J.P. Morgan Private Bank J.P. Morgan Asset Managem ent For more information on the JPM Fusion Fund range: www.jpmorgan.co.uk/fusionfunds

22. 21 It is important to demonstrate to clients investment expertise, knowledge and understanding of their financial goals Guide to the Markets helps you to have more engaged in-depth conversations with clients around outsourced investing, helping to build stronger relationships with them Access our materials online at www.jpmorgan.co.uk/insights Closing comments

23. 22 Learning objectives Introduce and differentiate the Fusion Fund range Introduce the J.P. Morgan Asset Management Guide Understand a diversified approach to generating an income from clients’ portfolios Understand investing in selected companies rather than economies Holding a well-balanced portfolio Understand the ability to demonstrate to clients investment expertise, knowledge and understanding of their financial goals Create client messages to help them understand the importance of a well balancedportfolio Communicate to clients that your investment strategies are designed to take best advantage of appropriate levels of risk

24. 23 JPM Fusion Fund range Investment policy and risk profile Investment policy – Investment is subject to documentation (Key Investor Information Document (KIID) and Key Features and Terms and Conditions), copies of which can be obtained free of charge from J.P. Morgan Asset Management Marketing Limited. Past performance is not a guide to the future General risks – The Fund will be subject to the risks associated with the underlying funds in which it invests. Further details below. – The value of your investments and income from them may fall as well as rise and you may get back less than you originally invested. – The JPM Fusion Income Fund charges the annual fee of the Authorised Corporate Director (ACD) against capital, which will increase the amount of income available for distribution to Shareholders, but may constrain capital growth. It may also have tax implications for certain investors. – Underlying fund risks – JPM Fusion Funds will be exposed to the following risks through investment in the underling funds; – The value of bonds and other debt securities held in the underlying funds may change significantly depending on market, economic and interest rate conditions as well as the creditworthiness of the issuer. – Issuers of bonds and other debt securities may fail to meet payment obligations (default) or the credit rating of bonds and other debt securities may be downgraded. These risks are typically increased for high yield bonds which may also be subject to higher volatility and be more difficult to sell than investment grade bonds. – The value of equity and equity-linked securities held in the underlying funds may fluctuate in response to the performance of individual companies and general market conditions. Emerging markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement practices, poor transparency and greater financial risks. Emerging market currencies may be subject to volatile price movements. Emerging market securities may also be subject to higher volatility and be more difficult to sell than non-emerging market securities. – The underlying funds in which the Fund invests may have exposure to commodities which can be very volatile. – The value of exchange traded commodities will reflect the price of the underlying commodity or basket of commodities which can be very volatile. – Unregulated collective investment schemes are subject to less onerous regulatory supervision than regulated schemes and may be higher risk. – To the extent that any underlying assets of the Fund are denominated in a currency other than Sterling and are not hedged back to Sterling, movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to minimise the effect of currency fluctuations may not always be successful. Please refer to the Fund's prospectus or Key Investor Information Document (KIID) for more information relating to the Fund.

25. 24 Important information For Professional Clients only – not for Retail use or distribution. There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management will continue to be employed by J.P. Morgan Asset Management or that the past performance or success of any such professional serves as an indicator of such professional's future performance or success. This document has been produced for information purposes only and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P.Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the product(s) or underlying overseas investments. Both past performance and yield may not be a reliable guide to future performance. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment product(s), there can be no assurance that those objectives will be met. Guide to the Market slides are shown for illustrative purposes only. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co and its affiliates worldwide. You should note that if you contact J.P. Morgan Asset Management by telephone those lines may be recorded and monitored for legal, security and training purposes. You should also take note that information and data from communications with you will be collected, stored and processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy Policy which can be accessed through the following website http://www.jpmorgan.com/pages/privacy. http://www.jpmorgan.com/pages/privacy Investment is subject to documentation which is comprised of the Prospectus, Key Investor Information (KIID) and either the Supplementary Information Document (SID) or Key Features/Terms and Condition, copies of which can be obtained free of charge from JPMorgan Asset Management Marketing Limited. Issued by JPMorgan Asset Management Marketing Limited which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 288553. Registered address: 25 Bank St, Canary Wharf, London E14 5JP. UKCN00940-0914