growth-advantage-sma-presentation.pdf - J.P. Morgan Asset ...

J.P. Morgan Growth Advantage Managed Account

As of September 30, 2021

0

Table of Contents

Capabilities

Strategy: Growth Advantage

– Expertise

– Process

– Results

– Portfolio

Appendix

1

Strategy overview

J.P. Morgan Growth Advantage Managed Account as of September 30, 2021

Expertise

Seasoned portfolio management team focused on growth

Tim Parton, lead Portfolio Manager, has 35 years of experience and has run the strategy since its 2005 inception

Felise Agranoff, Co-Portfolio Manager, has 17 years of experience and has been a member of the team since 2006 *

Supported by a team of dedicated growth analysts with an average of 15 years of experience

Portfolio

Fundamental, bottom up approach that focuses on stocks with strong growth potential

Seeks companies whose growth is being underappreciated by the market

Anchored in large cap stocks with the flexibility to invest in the best growth companies regardless of market

capitalization

Results

Consistent & competitive results over time

Flexible, high growth approach that has generated excess returns across the market cap spectrum

Outperformed the benchmark 100% of the time and ranked in the top quartile 95% of the time over rolling 5 year

periods since inception **

*Felise Agranoff was named Co-Portfolio Manager of the portfolio in November of 2020.

**As of 9/30/2021 J.P. Morgan Growth Advantage Managed Account Strategy 5 year excess returns are versus the Russell 3000 Growth index (gross of fees) and ranked against the Morningstar Large Cap

Growth Separate Account Category. Performance shown is for the SMA Composite from 9/30/2009 to current (SMA Composite inception: 9/30/2009). Performance prior to 9/30/2009 is linked to the

institutional composite (Institutional composite inception: 9/30/2005). For net of fee performance see slide 16.

Source: J.P. Morgan Asset Management, Morningstar.

Past performance is no guarantee of future results.

2

Capabilities

3

Equities Assets Under Management

As of September 30, 2021, J.P. Morgan Asset Management’s Equity teams manage USD 769 billion.

Source: J.P. Morgan Asset Management. Data includes internal Fund of Funds and joint ventures.

USD 769bn total assets under management

Equities

USD 442bn total assets under management

U.S. Equity

U.S. EquityUSD 442bn

58%

Emerging Markets & Asia Pacific Equity

USD 185bn24%

International Equity GroupUSD 142bn

18%

CoreUSD 102bn

23%

ValueUSD 153bn

35%

StructuredUSD 70bn

16%

GrowthUSD 117bn

26%

4

Expertise

5

6

An experienced team dedicated to growth investing

As of September 2021. Years of experience: industry/firm. 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.

Eytan Shapiro

CIO Growth

Lead PM Small Cap Growth

Experience: 39/36

Lee Spelman

Head of U.S. Equity

Experience: 45/32

Portfolio Managers

Tim Parton

Lead PM

Growth Advantage

& Mid Cap Growth

Experience: 35/35

Felise Agranoff

Co-PM

Growth Advantage,

Mid & Small Cap Growth

Experience: 17/17

Dr. Matt Cohen

Co-PM Small Cap Growth

Co-PM Global Healthcare

Healthcare

Experience: 24/16

Giri Devulapally

Lead PM

Large Cap Growth

Experience: 30/18

Joe WilsonLead PM U.S. TechnologyCo-PM Large Cap GrowthTechnologyExperience: 16/7

Holly FleissCo-PM Large Cap GrowthHealthcareExperience: 17/9

Larry Lee

Co-PM Large Cap Growth

Financials/Business

Services

Experience: 28/15

Research Team

Eric Ghernati

Co-PM U.S. Technology

Mid & Small Cap

Technology

Experience: 22/2

Jason Yum

Technology

Experience: 11/<1

Minqi Xiang

Mid & Small Cap

Technology

Experience: 8/8

Sarah Dodson

Large Cap

Consumer

Experience: 12/4

Daniel Bloomgarden

Mid & Small Cap

Consumer

Experience: 25/6

Greg Madsen

Mid & Small Cap

Consumer

Experience: 9/9

Robert Maloney

Large Cap

Industrials/Energy

Experience: 21/8

Michael Stein

Mid & Small Cap

Industrials/Energy

Experience: 14/7

Josiah Hannon

Healthcare

Experience: 6/<1

Zach Venditto

Mid & Small Cap

Financials/

Business Services

Experience: 10/10

Taylor Brimberg

Consumer &

Industrials

Experience: 3/3

James Connors

Experience: 17/16

Jonathan Sherman

Experience: 24/17

Nick Cangialosi

Experience: 12/10

Doug Stewart

Experience: 11/11

Steve Lewis

Experience: 6/6

Investment Specialists

Process

7

“We focus on those market leaders whose long term

growth rates are underappreciated by the market. Flexibility

to invest in the best growth companies regardless of market

cap allows us to target higher levels of excess return.”

Investment Philosophy

The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.

Our belief set: We seek to own companies with:

The market often underappreciates the growth potential of

select high quality companies

Relaxing the market cap constraint enables a manager to

fully express conviction

Large and/or growing addressable markets

Sustainable competitive advantages and leading market

share positions

Predictable earnings

Strong management and execution

Tim Parton

Lead Portfolio

Manager

Felise Agranoff

Co-Portfolio

Manager

8

A collaborative, disciplined and repeatable process

Consultative process between

analysts and portfolio managers

– does business fit our quality criteria?

– does management check out?

– develop investment thesis

– make third party checks

– assess current fundamentals; project

earnings

– analyze cash flow and balance sheet

– ESG considerations

The portfolio managers utilize the

fundamental analysis to create a

diversified portfolio of the highest

conviction names from the Growth

team

Position sizes determined by:

– strength of conviction

– quality of business

– risk/reward

– diversification impact on portfolio

– liquidity

Typically 80-120 holdings

Security weight of +/- 5% relative to

the Russell 3000 Growth Index

The highest conviction ideas from

Large, Mid and Small Cap Growth

strategies

Which come from:

– Highly experienced in-house analysts

– Weekly quantitative screens

– Portfolio companies & industry contacts

Idea

Generation

Fundamental

Analysis

Portfolio

Construction

For illustrative purposes only.


See page 33 for a glossary of investment terms.

9

Dexcom (DXCM)

Sources: FactSet, J.P. Morgan Asset Management. Company reports. Revenue estimates shown are J.P. Morgan Asset Management estimates as of 6/30/21. The security highlighted above has been

selected based on its significance and is shown for illustrative purposes only. It should not be interpreted as a recommendation to buy or sell. It should not be assumed that other securities in the portfolio

have performed in a similar manner. Past performance is not indicative of future returns.

LARGE ADDRESSABLE MARKET

Over 34 million people in the US (~10.5%) have diabetes

and the disease accounts for over $400 billion of medical

costs annually.

An estimated 1 in 3 people anticipated to have diabetes

by 2050.

COMPETITIVE ADVANTAGE

The company introduced the G6 CGM device in 2018,

combining its industry leading accuracy with ease of use.

The company is set to release its game changing next

generation G7 CGM device in late 2021, further widening

its competitive moat.

DIFFERENTIATED PERSPECTIVE

Our extensive survey work with doctors and discussions

with managed care companies are the backbone of our

differentiated view.

Dexcom is the leading manufacturer of continuous glucose monitoring technologies (CGM) which provide an innovative

solution for patients with diabetes

Dexcom Revenues (in $MM) & Adjusted EBITDA Margin (%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

1,000

2,000

3,000

4,000

5,000

6,000

201

7

201

8

201

9

202

0

202

1E

202

2E

202

3E

202

4E

202

5E

Revenue Margins

10

Sell discipline is as important as buy discipline

Will not add to a position if fundamental issues exist

Fundamental research identifies a divergence from the original investment thesis

Valuation alone is not a good reason to own a growth stock; never too “cheap” to sell

Market expectations exceed company’s ability to deliver

Displacement by a better idea



11

Results

12

Performance



1 Please note, actual fees associated with this strategy may be lower.

Past performance is not indicative of future returns. Total returns include the reinvestment of any income.

Performance results are gross of investment management fees. The deduction of an advisory fee reduces an investor’s return. Actual account performance will vary depending on individual portfolio security

selection and the applicable fee schedule. Fees are described in Part II of the Advisor’s ADV which is available upon request. (Please see back page for additional disclosure)

The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. The Russell 3000 Growth Index measures the performance of those Russell

3000 companies with higher price-to-book ratios and higher forecasted growth rates. The returns are total returns and include the reinvestment of dividends. An individual cannot invest directly in an index.

The index is unmanaged.

As of 9/30/21 the Growth Advantage Managed Account was ranked in the Morningstar Large Cap Growth Separate Account category for the following time periods: 175 out of 527 for the one-year period,

33 out of 497 funds for the three-year period, 21 out of 459 funds for the five-year period, 8 out of 376 funds for the ten-year period and 7 out of 287 for the since inception period.

Source: J.P. Morgan Asset Management; Frank Russell Company, Morningstar. Data as of 9/30/21. Rank vs. LCG SMA Morningstar Category. Returns are Gross of fees.

*SMA Composite from 9/30/2009 to current (SMA Composite inception: 9/30/2009). Performance prior to 9/30/2009 is linked to the institutional composite (Institutional composite inception: 9/30/2005).

Market value

J.P. Morgan Growth Advantage Strategy $22,984m

STRICTLY PRIVATE / CONFIDENTIAL

13

3Q21Year to

date

One

Year

Three

Years

Five

Years

Ten

Years

Since

Inception*

JPM Growth Advantage MA (Gross)* 0.61 12.19 29.59 25.02 26.59 22.89 16.00

JPM Growth Advantage MA (Net of max. allowable fees –

300bps)1-0.15 9.66 25.70 21.27 22.80 19.20 12.53

Russell 3000 Growth Index 0.69 13.49 27.57 21.27 22.30 19.40 12.67

Excess returns (Gross) -0.08 -1.30 2.01 3.75 4.29 3.50 3.33

Morningstar % Rank (SMA LCG) -- -- 34 7 5 2 3

Annualized performance (%)

Calendar year returns performance (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

JPM Growth Advantage MA (Gross)* 26.77 -41.20 38.25 23.64 -0.26 17.43 46.10 10.60 10.37 2.51 37.56 0.39 37.41 53.66

JPM Growth Advantage MA (Net of max. allowable

fees – 300bps)1 23.09 -43.02 34.27 20.03 -3.21 14.00 41.91 7.35 7.13 -0.52 33.59 -2.59 33.45 49.25

Russell 3000 Growth Index 11.40 -38.44 37.01 17.64 2.18 15.21 34.23 12.44 5.09 7.39 29.59 -2.12 35.85 38.26

Excess returns (Gross) 15.37 -2.76 1.24 6.00 -2.44 2.22 11.87 -1.84 5.28 -4.88 7.97 2.51 1.56 15.40

Morningstar % Rank (SMA LCG) 7 79 30 15 55 34 3 59 8 74 4 32 18 6

Strong risk-adjusted returns & consistency

J.P. Morgan Growth Advantage Managed Account – Excess Returns 5YR Rolling Periods *

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5-Year Excess Ret vs. R3KG

5-Year Excess Ret Mstar % Rank

Excess Ret % % Rank

% Of Time Beating Benchmark - 5Yr: 100%

% Of Time Top Quartile - 5Yr: 95%

Source: J.P. Morgan Asset Management; Frank Russell Company, Morningstar. Data as of 9/30/21. Rank vs. LCG SMA Morningstar Category. Returns are Gross of fees. Past performance is not

indicative of future returns

*SMA Composite from 9/30/2009 to current (SMA Composite inception: 9/30/2009). Performance prior to 9/30/2009 is linked to the institutional composite (Institutional composite inception: 9/30/2005).

Net of fee performance can be found on page 13.

Since Inception as of September 30, 2021 * ReturnTracking

Error

Information

Ratio

Up Market

Capture

Down Market

Capture

JPM Growth Advantage Managed Account (Gross) 16.0% 4.3 0.8 114% 105%

Morningstar % Rank (SMA LCG) 3 42 1 3 84

14

Strategy Overview

Performance results are gross of investment management fees. Net of fee performance can be found on page 13. The deduction of an advisory fee reduces an investor’s return. Actual account

performance will vary depending on individual portfolio security selection and the applicable fee schedule. Fees are described in Part II of the Advisor’s ADV which is available upon request. (Please

see back page for additional disclosure).The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. The Russell 3000 Growth Index

measures the performance of those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth rates. The returns are total returns and include the reinvestment of

dividends. An individual cannot invest directly in an index. The index is unmanaged.

Past performance is not indicative of future returns. Total returns include the reinvestment of any income.


Positioning

The portfolio continues to exhibit a diversified and balanced posture across secular growers with underappreciated

market opportunities as well as select high quality growth cyclicals.

The team is finding exciting opportunities in companies well positioned to benefit from a strengthening economy,

particularly within industrials and financials which remain the largest overweight exposures. Elsewhere, conviction

remains high in businesses that are catering to shifting consumer preferences including those which are capitalizing

on increased demand for energy independence and resilience.

Despite being the largest sector by absolute weight, technology remains the top underweight due to the portfolio’s

lower exposure to software and mega cap companies in the sector. Consumer discretionary is also a top underweight.

Market Review

Portfolio Review

U.S. Equity markets ended 3Q roughly flat with the S&P 500 Index returning 0.58%, bringing the year-to-date return to

15.92%.

Market leadership continues to evolve, with the Russell 3000 Growth Index and Russell 3000 Value Index

outperforming at different points in time this year. However, as of the end of 3Q21 value remains slightly ahead of

growth year-to-date.

The J.P. Morgan Growth Advantage Managed Account (gross of fees) modestly underperformed the benchmark in the

third quarter of 2021, returning 0.61% vs. 0.69% for the Russell 3000 Growth Index. On a year-to-date basis, the

strategy has returned 12.19% versus 13.49% for the benchmark. Long term performance remains strong with all

trailing periods ahead of the benchmark.

For the quarter, stock selection in the telecommunications and consumer discretionary sectors were the top

detractors. Stock selection in health care followed by an overweight allocation in financials were the top contributors.

Sector positioning has been the primary detractor to performance for the year-to-date period. Stock selection and an

overweight allocation to the consumer discretionary sector was the top detractor, followed by stock selection within

energy. Stock selection in the financials and industrials sectors were the top contributors.

15

Market Environment

Source: J.P. Morgan Asset Management; Morningstar, Frank Russell Company, Standard & Poor’s. For all time periods, total return is based on Russell-style indexes with the

exception of the large blend category, which is based on the S&P 500 Index. Past performance is not a guarantee of future results.


Year To Date Index Returns

Large

Mid

Small

Value Core Growth

January 1, 2021 – September 30, 2021 shaded from best-to-worst performing index

Third Quarter 2021 Index Returns

Large

Mid

Small

Value Core Growth

July 1, 2021 – September 30, 2021 shaded from best-to-worst performing index

41%

28%24%

22%

16%13% 12% 10% 9% 7% 6% 5%

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Year To Date S&P 500 Index Sector Returns

Third Quarter 2021 S&P 500 Index Sector Returns

3% 3%2%

1%1% 1% 0%

-1%-2%

-2%

-3%-4%

Te

ch

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logy

Fin

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Utilit

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-0.8% 0.6% 1.2%

-1.0% -0.9% -0.8%

-3.0% -4.4% -5.7%

16.1% 15.9% 14.3%

18.2% 15.2% 9.6%

22.9% 12.4% 2.8%

16

SectorAvg. weight

difference

Portfolio

return

Russell 3000

Growth return

Stock

selection

Sector

selection

Total

impact

Health Care 1.92 4.08 0.58 0.43 -0.01 0.42

Financials 4.44 5.53 6.73 -0.07 0.25 0.18

Energy 0.69 -5.06 -7.70 0.04 0.01 0.04

Industrials 4.41 -2.91 -4.04 0.21 -0.21 0.00

Utilities -0.13 0.00 7.10 0.00 -0.01 -0.01

Consumer Staples -1.22 -9.51 -3.28 -0.11 0.05 -0.05

Basic Materials -0.09 -12.15 -3.90 -0.06 0.00 -0.06

Technology -7.40 3.11 2.85 0.11 -0.17 -0.06

Real Estate -1.65 -21.43 -3.23 -0.14 0.07 -0.07

Consumer Discretionary -1.15 -0.08 0.44 -0.12 -0.02 -0.14

Telecommunications 0.17 -31.77 -10.93 -0.30 -0.03 -0.32

Total 0.00 0.63 0.69 0.00 -0.06 -0.06

Top contributors Impact Top detractors Impact

Dexcom 0.26 Roku -0.35

Quanta Services 0.20 Moderna 1 -0.22

MongoDB 0.19 Global Payments -0.18

Blackstone 0.19 Jazz Pharmaceuticals -0.17

Catalent 0.16 Netflix 1 -0.15

Performance attribution: 3Q 2021

Sector attribution (%)

Stock attribution (%)


1 Was not owned during the period.

The benchmark is the Russell 3000 Growth Index. For illustrative purposes only. Data shown is reflective of the institutional representative account.

Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). The Strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage, as

applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is no guarantee of future results.


17

SectorAvg. weight

difference

Portfolio

return

Russell 3000

Growth return

Stock

selection

Sector

selection

Total

impact

Financials 3.89 33.69 22.47 0.57 0.31 0.88

Industrials 4.45 14.06 7.64 1.05 -0.30 0.75

Consumer Staples -1.85 2.71 -0.69 -0.01 0.31 0.30

Health Care -0.03 12.72 10.97 0.23 0.01 0.24

Basic Materials 0.19 25.55 2.49 0.18 -0.02 0.17

Utilities -0.19 0.00 8.64 0.00 0.02 0.02

Telecommunications -0.17 -27.90 1.79 -0.24 -0.02 -0.26

Real Estate -1.53 -26.02 15.19 -0.34 -0.01 -0.35

Technology -8.21 20.46 20.55 0.00 -0.59 -0.59

Energy 0.93 -31.52 -2.83 -0.66 0.06 -0.61

Consumer Discretionary 2.52 3.42 6.87 -0.75 -0.29 -1.04

Total 0.00 12.99 13.48 0.03 -0.52 -0.49

Top contributors Impact Top detractors Impact

Generac 0.66 Discovery Communications -0.58

Blackstone 0.49 Global Payments -0.57

Dexcom 0.33 Moderna 2 -0.42

HubSpot 0.32 Array Technologies -0.37

Apple 1 0.27 Las Vegas Sands -0.35

Performance attribution: Year to date

Sector attribution (%)

Stock attribution (%)


1 Was underweight during the period.2 Was not owned during the period.





18

Portfolio

19

Sector positioning

J.P. Morgan Growth Advantage Managed Account as of September 30, 2021 Benchmark Russell 3000 Growth Index




4.74.1

2.0

0.90.1

-0.1 -0.1

-1.1-1.9 -2.0

-6.6

Financials Industrials Health Care Energy Telecomm BasicMaterials

Utilities ConsumerStaples

Real Estate ConsumerDiscretionary

Technology

Absolute

weight (%) 7.2 17.2 12.2 1.5 0.9 0.7 0.0 1.6 0.0 19.5 39.3

Relative

weight (%)

Absolute and relative sector positions

20

Major transactions: 3Q 2021

* Position was either a new initiation or full elimination.

The benchmark is the Russell 3000 Growth Index. For illustrative purposes only. Data shown above is for a representative account for the strategy.



See pages 9-11 for a description of our buy and sell discipline.


Top Buys

EOG Resources *

Bumble *

Natera *

Top Sells

Amgen *

Las Vegas Sands *

Nike

21

Portfolio weightings


Top 10 holdingsPortfolio

weight (%)

Apple 6.49

Microsoft 6.17

Alphabet 5.61

Amazon 4.95

Facebook 3.05

NVIDIA 2.40

Tesla 2.11

Mastercard 2.10

Home Depot 1.82

PayPal 1.72

Total 36.42

Top 10 overweightsPortfolio

weight (%)

Benchmark

weight (%)

Active

position (%)

Generac 1.35 0.11 1.24

Charles Schwab 1.21 0.00 1.21

Regeneron Pharmaceuticals 1.20 0.03 1.17

Trane Technologies 1.21 0.09 1.12

Blackstone 1.45 0.35 1.10

Horizon Therapeutics 1.08 0.02 1.06

Global Payments 1.00 0.00 1.00

Quanta Services 0.99 0.00 0.99

Dexcom 1.19 0.23 0.96

Lam Research 1.31 0.36 0.95

Total 11.99 1.19 10.80

The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell.




22

Portfolio characteristics


Characteristics Portfolio Benchmark

Weighted Avg. Market Cap $628.7bn $773.4bn

Price / Earnings, 12-mth fwd1 24.6x 25.4x

EPS Growth, 12-mth fwd 18.4% 17.1%

Beta2 1.04 1.00

Tracking Error2 3.52 N/A

Turnover3 38% N/A

Active Share 56% N/A

Number of holdings 93 1,724

BARRA tilts

-0.25

-0.17

-0.14

-0.12

-0.09

-0.06

-0.02

-0.02

0.04

0.11

0.12

0.19

-0.4 -0.2 0 0.2 0.4

Profit

Size

Dividend Yield

Earnings Quality

Leverage

Growth

Earnings Yield

Residual Volatility

Momentum

Liquidity

Value

Beta

Market capitalization

49.4

9.5

30.0

10.40.7

66.1

10.0 10.9 7.9 5.0

0%

20%

40%

60%

80%

> USD 100 Bn USD 50-100 Bn USD 20-50 Bn USD 5-20 Bn < USD 5 Bn

Portfolio Benchmark

1. Excludes negatives.

2. Three-year trailing, calculated on a monthly basis.

3. Average 12-month turnover over past three years.


Source: J.P. Morgan Asset Management, Frank Russell Company, BARRA, Wilshire Atlas (excludes cash). The Strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage,

as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is no guarantee of future results.


23

Appendix

24

Environments

The opinions and views expressed here are those held by the author, which are subject to change and are not to be taken as or construed as investment advice.

Example: 2013

Higher growth stocks were generally rewarded

Mega-cap stocks lagged the market

Strong stock selection across a variety of sectors, led by health care, financials

and technology

Strong stock selection across the market cap segments

Environments in which the portfolio tends to

perform well

Environments in which the portfolio tends to

struggle

Example: 2016

Growth characteristics were not rewarded throughout the year as investors

preferred stocks with low valuations

Defensive characteristics outperformed significantly early in the year

Stock selection detracted across a number of sectors, led by health care,

technology and consumer discretionary

Company-specific fundamentals are the main driver of returns

Stocks with higher growth characteristics are being rewarded

Companies with the largest market capitalizations

underperform

Growth characteristics are not rewarded

Extremely defensive markets when the largest and/or lowest

growth companies outperform significantly


25

Investment opportunities

Source: J.P. Morgan Asset Management. The securities highlighted above have been selected based on their significance and are shown for illustrative purposes only. It should not be interpreted as a

recommendation to buy or sell. It should not be assumed that other securities in the portfolio have performed in a similar manner. The strategy is an actively managed portfolio, holdings, sector weights,

allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Data shown above is for a representative account.

Past performance is not indicative of future returns.

Industrials

High quality franchises that are well-positioned to benefit from

a rebound in economic activity

Trane Technologies, Deere, Ingersoll Rand, Zebra

Technologies

Semiconductors

The technology sector remains an underweight though we

continue to have bottom-up conviction in semiconductors due

to growth in cloud computing, AI and IoT

Lam Research, Entegris, Synopsys, Keysight

Technologies, Advanced Micro Devices

Energy Independence & Resilience

Companies that are poised to benefit from consumer demand

for backup power generation as well as the modernization of

the power grid

Generac, Quanta Services, Freeport-McMoRan,

SolarEdge, Tesla

Financials

We have exposure to steady high quality businesses with

robust tailwinds as well as secular growers within payments

Blackstone, Charles Schwab, Global Payments,

BlackRock, First Republic Bank

26

We invest where we believe the best investment opportunities exist, regardless of

market cap range


For illustrative purposes only. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. Data shown is reflective of the institutional representative account.

Source: J.P. Morgan Asset Management; Frank Russell Company. Past performance is not indicative of future returns

1% 5%

10% 8%

30%

11%

9%

10%

49%

66%

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3Q21 R3KG

Portfolio weight by market capitalization

>$100 billion ≥$50 billion & ≤$100 billion ≥$20 billion & ≤$50 billion ≥$5 billion & ≤$20 billion ≤$5 billion R3KG

27

Performance has been driven by stock selection across sectors and market caps

Annualized Attribution

September 30, 2005 through September 30, 2021

Russell Sector Stock Selection Sector Allocation Total

Health Care 0.56 0.15 0.72

Consumer Discretionary 0.65 0.06 0.71

Producer Durables 0.60 -0.02 0.58

Technology 0.39 0.02 0.41

Financial Services 0.36 -0.02 0.34

Materials & Processing 0.25 -0.02 0.23

Energy 0.10 0.06 0.16

Utilities 0.01 0.02 0.02

Consumer Staples -0.13 0.04 -0.09

Total 2.83 0.24 3.06

Market Cap Stock Selection Sector Allocation Total

> $100 Bn 1.02 -0.19 0.83

$50 Bn - $100 Bn 0.24 0.03 0.27

$20 Bn - $50 Bn 0.40 -0.05 0.35

$5 Bn - $20 Bn 1.02 -0.05 0.97

< $5 Bn 0.44 0.22 0.65

Total 3.11 -0.05 3.06

Inception date: September 30, 2005. Benchmark is the Russell 3000 Growth Index. Past performance is not indicative of future returns

For illustrative purposes only. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. Data shown above is for a representative account for the strategy.

Source: J.P. Morgan Asset Management; Frank Russell Company; Wilshire (excludes cash).


28

Some of our biggest winners started off as smaller companies

As of September 30, 2021. Data shown is reflective of the institutional representative account.

Source: J.P. Morgan Asset Management, Wilshire (excludes cash). The securities highlighted above have been selected based on their significance and are shown for illustrative purposes only. It should not

be interpreted as a recommendation to buy or sell. It should not be assumed that other securities in the portfolio have performed in a similar manner. The strategy is an actively managed portfolio, holdings,

sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.

Inception date: September 30, 2005. Benchmark is the Russell 3000 Growth Index. Past performance is not indicative of future returns

Top 5 contributors

since inceptionSector Initiation date

Initiation market cap

($bn)

Current market cap

($bn)

Tesla Consumer May 2011 3 768

Amazon Consumer April 2007 25 1,664

Generac Industrials Aug 2019 5 26

Mastercard Financials May 2006 3 343

UnitedHealth Group Health Care May 2009 34 368

29

66% 67%

6%

59%

50%

3%7%

36

69

67

0

10

20

30

40

50

60

70

80

0%

10%

20%

30%

40%

50%

60%

70%

80%% of Portfolio

% of Growth Advantage

# Common Names (RHS)

Large Cap

Growth

Growth

Advantage

Mid Cap

Growth

Growth

Advantage

Small Cap

Growth

Growth

Advantage

Growth Advantage

Unique Names

Growth Advantage leverages the best ideas across all of our growth strategies


Shown for illustrative purposes only. Past performance is no guarantee of future results.

Source: J.P. Morgan Asset Management. Data shown is reflective of the institutional representative account.

Growth Advantage portfolio overlap (market value %)

30

31

U.S. Equity has a strong commitment to fundamental research

As of September 2021. Years of experience: industry/firm. 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.

David Small Director of U.S. Research

Exp.: 21/17

Steven WhartonBanks &Capital MarketsExp.: 26/16

Larry Lee Financials / Business ServicesExp.: 28/15

Dan Percella Generalist/Banking & FinanceExp.: 19/14

Financials

David ChanPaymentsExp.: 14/4

AJ GrewalFinancial ServicesExp.: 22/3

Generalist

Graham SpenceGeneralistExp.: 20/8

Kris EricksonMediaExp.: 21/9

Ryan Vineyard Telecom & CableExp.: 17/10

Telecom & Media

Robert BowmanSemis & Tech. HardwareExp.: 28/28

Nitin BhambhaniSoftware & ServicesExp.: 28/25

Technology

Jon BrachleGeneralist/ TechnologyExp.: 14/14

Joe WilsonTechnologyExp.: 16/7

Ryan JonesTechnologyExp.: 15/6

Eric GhernatiTechnologyExp.: 22/2

REITs

Jason KoREITsExp.: 20/20

Nick TurchettaREITsExp.: 11/2

Brent GdulaInsuranceExp.: 13/13

Danielle HinesAssociate Director of U.S. Research

Exp.: 12/12

Zach VendittoFinancials/Business SvcsExp.: 10/10

Consumer

Lisa SadiogluConsumer CyclicalsExp.: 21/21

Greg FowlkesRetailExp.: 22/16

Daniel BloomgardenConsumerExp.: 25/6

Shilpee RainaGeneralist Exp.:17/17

Sarah DodsonConsumerExp.: 12/4

Dennis MorganConsumerExp.: 27/4

Greg MadsenConsumerExp.:9/9

Dr. Matt Cohen HealthcareExp.: 24/16

Laurence McGrathHealth Svcs / MedtechExp.: 24/11

Holly FleissHealthcareExp.: 17/9

Chris Carter Generalist / Health CareExp.: 15/6

Healthcare

Brittany HendersonMedtechExp.: 11/4

Bartjan van HultenPharma/BiotechExp.: 25/3

Tony LeeHealthcareExp.: 9/9

Lerone VincentBasic MaterialsExp.: 23/23

David MaccarroneEnergy InfrastructureExp.: 27/11

Leslie Rich UtilitiesExp.: 28/11

Industrials

Robert MaloneyIndustrials Exp.: 21/8

Chris CerasoAutos & TransportExp.: 21/8

Joanna ShatneyIndustrial CyclicalsExp.: 25/7

Michael SteinIndustrials Exp.: 14/7

Jeremy MillerIndustrialsExp.: 21/6

Andrew BrillIndustrialsExp.: 18/5

Larry UnreinHealthcareExp.: 12/12

Aga ZmigrodzkaEnergyExp.: 12/<1

Li BoyntonPhama/BiotechExp.: 7/4

Jason YumTechnologyExp.: 11/<1

GIPS® Report: Growth Advantage Managed Accounts Composite

As of December 31, 2019

32

Glossary of investment terms

Active share - A measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index.

Alpha - The amount of return expected from an investment from its inherent value.

Information ratio - A ratio of portfolio returns above the returns of a benchmark to the volatility of those returns.

Bottom-up investing - An investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles and market cycles.

BARRA tilts - Barra Risk Factor Analysis is a multi-factor model, created by Barra Inc., used to measure the overall risk associated with a security relative to market performance.

Beta - A measurement of volatility where 1 is neutral; above 1 is more volatile; and less than 1 is less volatile.

Down-market capture - A statistical measure of an investment manager's overall performance in down-markets.

Earnings Per Share (EPS) - The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.

Excess return – Portfolio returns achieved above and beyond the return of its benchmark.

Free cash flow yield - A financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by

taking the free cash flow per share divided by the current share price.

Fundamental analysis - Attempts to measure a security's intrinsic value by examining related economic and financial factors including the balance sheet, strategic initiatives,

microeconomic indicators, and consumer behavior.

Growth investing – Investment strategy that focuses on stocks of companies and stock funds where earnings are growing rapidly and are expected to continue growing.

Large-cap - The market capitalization of the stocks of companies with market values greater than $10 billion.

Mid-cap - The market capitalization of the stocks of companies with market values between $3 to $10 billion.

Performance attribution - A set of techniques that performance analysts use to explain why a portfolio's performance differed from the benchmark.

Price/Earnings 12-month forward - Price of a stock divided by its projected earnings for the coming year.

Small-cap - The market capitalization of the stocks of companies with market values less than $3 billion.

Tracking error - The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.

Turnover ratio - Percentage of holdings in a mutual fund that are sold in a specified period.

Up-market capture – A statistical measure of an investment manager's overall performance in up-markets.

Valuation - An estimate of the value or worth of a company; the price investors assign to an individual stock.

Value investing - A strategy whereby investors purchase equity securities that they believe are selling below estimated true value. The investor can profit by buying these securities

then selling them once they appreciate to their real value.

Weighted average market capitalization - Most indexes are constructed by weighting the market capitalization of each stock on the index. In such an index, larger companies account

for a greater portion of the index. An example is the S&P 500 Index.

33

J.P. Morgan Asset Management

Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change

without notice. We believe the information provided here is reliable. These views and strategies described may not be suitable for all investors. References to specific

securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. Past

performance is no guarantee of future results.

RISK SUMMARY: The price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or

unpredictably. These price movements may result from factors affecting individual companies, sectors or industries selected for the portfolio or the securities market as a whole, such as

changes in economic or political conditions. Equity securities are subject to “stock market risk” meaning that stock prices in general (or in particular, the prices of the types of securities

in which a portfolio invests) may decline over short or extended periods of time. When the value of a portfolio’s securities goes down, an investment in a fund decreases in value. There

is no guarantee that the use of long and short positions will succeed in limiting the Fund's exposure to domestic stock market movements, capitalization, sector-swings or other risk

factors. Investment in a portfolio involved in long and short selling may have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling involves

certain risks, including additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale positions.

There can be no assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM or that the past performance or success of any such

professional serves as an indicator of such professional’s future performance or success.

Any securities/portfolio holdings mentioned throughout the presentation are shown for illustrative purposes only and should not be interpreted as recommendations to buy or sell. A full

list of firm recommendations for the past year are available upon request.

Past performance does not guarantee future results. Total returns assumes reinvestment of any income. The deduction of an advisory fee reduces an investor’s return. Actual account

performance will vary on individual portfolio security selection and the applicable fee schedule. Fees are available upon request.

The following is an example of the effect of compounded advisory fees over a period of time on the value of a client’s portfo lio: A portfolio with a beginning value of $100 million, gaining

an annual return of 10% per annum would grow to $259 million after 10 years, assuming no fees have been paid out. Conversely, a portfolio with a beginning value of $100 million,

gaining an annual return of 10% per annum, but paying a fee of 1% per annum, would only grow to $235 million after 10 years. The annualized returns over the 10 year time period are

10.00% (gross of fees) and 8.91% (net of fees). If the fee in the above example was 0.25% per annum, the portfolio would grow to $253 million after 10 years and return 9.73% net of

fees. The fees were calculated on a monthly basis, which shows the maximum effect of compounding.

Securities may be sold through J.P. Morgan Institutional Investments Inc., member FINRA.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, JPMorgan

Chase Bank N.A., J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated , J.P. Morgan Alternative Asset Management, Inc., and J.P.

Morgan Asset Management (Canada), Inc.

This is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment

product, strategy, plan feature or other purpose. Any examples used are generic, hypothetical and for illustration purposes only. Prior to making any investment or financial decisions,

an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an

investor’s own situation.

If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.

Copyright 2021 JPMorgan Chase & Co. All rights reserved.

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