JPM Fusion Fund rangeSM

Fund of funds created from a broader palette

Fusion of investment benefits

One-stop investment solutions matched to individual risk/reward preferences

Imagine that you could have one single investment that could meet your savings objectives. One that aims to bring you the best potential returns, for a level of risk that you would choose for yourself. One that opened up multiple opportunities too, by giving you exposure to a variety of asset classes likely to perform differently in various climates. One that was also managed and monitored by world-class investment managers, so you don’t have to monitor the markets or choose the most appropriate funds yourself.

This is exactly what the JPM Fusion Fund range aims to deliver. The JPM Fusion Fund range provides the benefits of a broad portfolio with the ease of a single fund which is continually monitored to keep it on track with its investment objectives.

We begin with your needsWhen you invest in the JPM Fusion Fund range, your adviser starts by building up your ‘risk profile’ – examining your personal attitude to risk and reward. With that firm foundation, you then go on to select the Fusion Fund solution that most closely matches your personal risk/reward preferences.

Using all the tools in the toolbox JPM Fusion Funds are constructed as ‘fund of funds’ solutions. This means that our investment managers choose and combine a collection of individual specialist funds which invest in different asset areas, in order to create overall investment solutions. You may also find it reassuring that this fund of funds model has been gaining widespread approval, with investment increasing by 43% over the last five years.*

What’s more, the JPM Fusion Fund range managers can call on a wide choice of established funds when creating each solution, both from JPM and third party fund providers, searching the markets to find outperforming investments that complement each other. So we can put together a comprehensive investment solution including funds that directly invest in company shares, bonds and other assets across geographic regions and investment sectors.

As a result, you can benefit from the expertise of the specialist fund managers we select. Remember, each of these has been chosen because we believe they have the best potential to unlock the wealth in their respective sectors, markets and geographic regions.

* Source: Lipper March 2013

JPM Fusion Fund range – fund of funds with different ingredients, whatever your attitude to risk

Five fund of funds options to choose from

We offer you a choice of five carefully diversified fund of funds, each strategically positioned at a key point on the risk preference spectrum. This means that you can select a solution that has a combination of assets that matches your own approach to risk and reward.

JPM Fusion Funds are whole of market which means managers can select from the best J.P. Morgan and third party funds that are available to them. These are some of the typical asset classes which JPM Fusion Funds have exposure to;

▶ Equities Company shares can pay attractive and regular dividends to shareholders. Many blue-chip companies have

strong finances and reliable profits, and often prove resilient in periods of economic weakness. In an economic recovery, these companies should make higher profits, increasing the amount they can pay to shareholders. But income can vary and prices can fall as well as rise.

▶ Fixed Income This includes both UK government bonds (gilts), other government bonds, and corporate bonds. The

managers select bonds for both stability and yield. Bonds have historically provided protection against volatility, while paying more income than cash deposits, and can provide the backbone of a more conservative portfolio.

▶ Alternatives This includes a wide range of investment types, including exchange traded commodities (ETFs).

▶ Real Estate This includes investing directly in property funds both in the UK and overseas. Widely used for capital

growth, but rental property has the potential to provide a steady income. Investing in the shares of property companies (property securities) can also offer investors a regular and attractive income. Focusing on property can lead to more volatile returns if the sector falls out of favour.

▶ Commodities Exposure to real assets such as industrial or precious metals is another way of potentially gaining from

trends in economic and population growth.

JPM Fusion Funds Profile of typical investor

JPM Fusion Income Fund The fund may suit investors looking for income with the prospect of capital growth from an exposure to multiple asset classes. Investors should have a three to five year investment horizon.

JPM Fusion Conservative Fund The fund may suit investors looking for capital growth from an exposure to multiple asset classes. Investors should have a three to five year investment horizon.

JPM Fusion Balanced Fund The fund may suit investors looking for capital growth from an exposure to multiple asset classes. Investors should have a five year investment horizon.

JPM Fusion Growth Fund The fund may suit investors looking for capital growth from an exposure to multiple asset classes with a bias towards Equities. Investors should have a five year investment horizon.

JPM Fusion Growth Plus Fund The fund may suit investors looking for capital growth from a broad exposure predominantly to Equity markets. Investors should have a five year investment horizon.

Advantage of diversification

Diversification is one of the central tenets of investing: different types of investment perform well at different times, so spreading your investments more widely has the potential to help you achieve more consistent returns. This applies not only to types of investment – shares, bonds, alternatives – but to investment regions and sectors.

With access to a wealth of investment sectors, from UK government bonds (gilts) to emerging market equities, our managers can adjust each fund of funds to provide maximum potential to maximise performance in varying market conditions, although this is not guaranteed.

Drawing on both actively managed and index-tracking fundsWhile seeking to maximise returns, the investment management team can consider both actively managed and passive (index-tracking) investments. We believe this gives us the flexibility to seek outstanding performance where we believe markets and sectors offer high potential, while also keeping costs low in markets and sectors where experience shows that index-tracking can be cost-effective.

Regular monitoring and rebalancingJPM Fusion Funds aim to meet a wide range of investment goals - including income and capital growth - with underlying fund selection adapted accordingly. Investment managers monitor and adjust funds as necessary to give the funds the best chance of meeting their investment objectives.

Active management is important as the relative performance of underlying specialist funds can change year by year. Because we aim to achieve consistent returns, we act to replace funds swiftly when we believe that performance may weaken.

Rigorous investment management that’s also flexibleWhile long-term planning is key, we also understand that major market falls or disproportionate price increases (‘bubbles’) in certain sectors can temporarily unbalance even the best strategies. This is why we can make timely, short-term adjustments in our asset allocation strategy to bridge the gap between long-term market assumptions and current market conditions.

The chart shows how we might adjust a fund of funds to reflect a dislocation such as short-term market weakness in developed economies.

Source: J.P. Morgan. * Strategic and tactical allocations are for illustrative purposes only.

From Strategic to Tactical Asset Allocation*

Strategic Tactical

Fixed Income and Cash

35%

Equities 55%

Alternative Investments

10%

Equities 50%

Alternative Investments

12%

Fixed Income and Cash

38%

JPM Fusion Fund range – fund of funds with different ingredients, first class solutions, whatever your attitude to risk

Fusion of talent

World-class investment management for our fund of funds range

Our JPM Fusion Fund range is created and managed by J.P. Morgan Asset Management combining specialist skills from J.P. Morgan Investment Management and J.P. Morgan Private Bank – drawing on 160 years’ experience in managing portfolios for wealthy individuals worldwide, across a wide spectrum of asset classes.

Identifying and controlling investment risk To give our funds every chance of growing in value in varying market conditions, we create and manage JPM Fusion Fund options with risk management in mind. This involves using strict monitoring and governance throughout the investment process. In fact, risk management is deeply embedded into every aspect of our business.

Extra levels of risk protectionTo ensure a further level of objectivity when guarding against investment risk, each JPM Fusion Fund has been risk-mapped by leading third party risk consultancies. Each fund has then been given a specific technical risk grading to help your adviser when deciding on JPM Fusion Fund range options.

Simple and tax-efficient ways to invest For maximum tax advantages, our JPM Fusion Fund range can be held in Individual Savings Accounts (ISAs) and Self Invested Personal Pensions (SIPPs).

Tax benefits and liabilities depend on individual circumstances and may change in the future.

JPM Fusion Fund range – fund of funds with different ingredients, whatever your attitude to risk

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. 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. Both past performance and yield may not be a reliable guide to future performance and you should be aware that the value of securities and any income arising from them may fluctuate in accordance with market conditions. J.P. Morgan Asset Management is the brand name for the asset management business of J.P. Morgan 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. Issued in the UK by J.P. Morgan Asset Management Marketing Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank St, Canary Wharf, London E14 5JP, United Kingdom. JPM5634 | 01/13

For more information on how the JPM Fusion Fund range could provide you with a one stop investment solution, speak to your financial adviser

Key risks

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.