Navigating the concentrated market rally

The stronger start to the year for MSCI World was also historically narrow in scope, with the vast majority of returns driven by just seven stocks in the US. At this point, investors may be looking for opportunities in equities beyond just the market leaders of 2023, especially given many other areas of the market and regions still look attractive from a valuation perspective. Should market returns be more muted going forward, investors will continue to seek high levels of income, particularly in ways that do not mean taking on too much volatility or too little liquidity.

As an equity options-based solution comprised of a high-quality equity portfolio and selling index call options, JEPG* provides a way for investors to meet income and total return at lower risk versus traditional equity strategies.

A conservative equity ETF seeking income as the outcome, balanced with an attractive total return

 JEPG* is a highly liquid ETF offering an active solution with daily transparency at a low cost. The strategy combines equities with options to strike a balance across yield, capital growth and risk. JEPG* seeks to deliver a significant portion of the returns associated with the MSCI World Index with less volatility, in addition to monthly income.

JEPG* applies a time-tested process which is also used for the largest active ETF in the world for an underlying US equities portfolio instead of global equities. Here’s how it works: We use fundamental bottom-up research to build a higher-quality, lower-beta portfolio of Global large cap equities with less volatile earnings and share prices. We then sell index options against that long-only portfolio and use the premiums to generate income, in addition to the dividends from the underlying equities we hold. The result is a conservative equity income strategy designed to reduce downside exposure by forgoing some upside participation.

With JEPG*, investors receive:

• Fully active, broadly diversified equity portfolio: Leverages 80+ research analysts and an over 30-year proprietary process to find attractive stocks across sectors.
• Innovative income: Avoids the duration risk of higher- yielding bonds and the quality risk of higher-yielding stocks and extended fixed income sectors.
• Unique options strategy: Sells call options every week to adapt to changing market conditions. When volatility spikes and interest rates rise, for example, JEPG* has the potential to provide higher income when investors most need the cushion against fluctuating prices.
• 100% payouts: Distributes all monthly net income from dividends and options premium in distributing share classes (dist).

JPMorgan Global Equity Premium Income Active ETF at a glance

Four ways to build stronger portfolios with JEPG*

1. Add to income portfolios to achieve consistent, attractive yields regardless of what happens with interest rates or equity dividends.
2. Replace or complement higher-yielding bonds with a strategy offering no duration or credit risk and comparable, if not higher, income potential in exchange for taking on some equity risk.
3. Deploy excess cash for investors looking to ease back into equities with about one-third less volatility.
4. De-risk equity portfolios by locking in gains from existing strategies and reinvesting the proceeds in a more conservative alternative.

With an uncertain path for fixed income and equity market returns ahead, now is the time to be creative and active in your search for yield and total return. Discover how JEPG* can help you solve for both market participation and income without sacrificing quality, liquidity or long-term growth potential.

Investment Objective and Risk Profile

JPMorgan ETFs (Ireland) ICAV – Global Equity Premium Income UCITS ETF*

Investment objective

The objective of the Sub-Fund is to provide income and long-term capital growth.

The risk indicator assumes you keep the product for 5 year(s). The risk of the product may be significantly higher if held for less than the recommended holding period. In the UK, please refer to the synthetic risk and reward indicator in the latest available key investor information document.

Risk profile

• The value of your investment may fall as well as rise and you may get back less than you originally invested.
• The value of equity securities may go down as well as up in response to the performance of individual companies and general market conditions, sometimes rapidly or unpredictably. If a company goes through bankruptcy or a similar financial restructuring, its shares in issue typically lose most or all of their value.
• The value of FDIs can be volatile. This is because a small movement in the value of the underlying asset can cause a large movement in the value of the FDI and therefore, investment in such instruments may result in losses in excess of the amount invested by the Sub-Fund.
• While the Sub-Fund uses an FDI overlay strategy which is intended to provide income, there is no guarantee that the derivative strategy will achieve this. The Sub-Fund may forego some capital apprecia- tion potential, while retaining the risk of loss should the price of the underlying decline.
• Selling call options will create exposure for the Sub-Fund, as it may have to deliver the underlying securities or their value and, should the market move unfavourably, this may result in an unlimited loss.
• REITs and real estate related investments are subject to the risks associated with the ownership of real estate which may expose the relevant Sub-Fund to increased liquidity risk, price volatility and loss- es due to changes in economic conditions and interest rates.
• Since the instruments held by the Sub-Fund may be denominated in, or have exposure to, currencies other than the Base Currency, the Sub-Fund may be affected unfavourably by exchange control regulations or fluctuations in currency rates. For this reason, changes in currency exchange rates can affect the value of the Sub-Fund’s portfolio and may impact the value of the Shares.
• The Distributing Share Classes give priority to dividends, rather than to capital growth, and may at times distribute capital gains.
• Further information about risks can be found in the “Risk Information“ section of the Prospectus.

*Includes management fees and other administrative and operating costs.

*FOR BELGIUM ONLY: Please note the acc share class of the ETF marked with an asterisk (*) in this page are not registered in Belgium and can only be accessible for professional clients. Please contact your J.P. Morgan Asset Management representative for further information. The offering of Shares has not been and will not be notified to the Belgian Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten/Autorité des Services et Marchés Financiers) nor has this document been, nor will it be, approved by the Financial Services and Markets Authority. This document may be distributed in Belgium only to such investors for their personal use and exclusively for the purposes of this offering of Shares. Accordingly, this document may not be used for any other purpose nor passed on to any other investor in Belgium.

For Professional Clients / Qualified Investors only – not for Retail use or distribution.

This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a 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 research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. 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 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. 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 products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, there can be no assurance that the investment objectives of the investment products will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. As the product may not be authorised or its offering may be restricted in your jurisdiction, it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Shares or other interests may not be offered to or purchased directly or indirectly by US persons. All transactions should be based on the latest available Prospectus, the Key Information Document (KID) and any applicable local offering document. These documents together with the annual report, semi-annual report, instrument of incorporation and sustainability-related disclosures, are available in English from JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, your financial adviser or your J.P. Morgan Asset Management regional contact or at www.jpmorganassetmanagement.ie. A summary of investor rights is available in English at https://am.jpmorgan.com/lu/investor-rights. J.P. Morgan Asset Management may decide to terminate the arrangements made for the marketing of its collective investment undertakings. Units in Undertakings for Collective Investment in Transferable Securities (“UCITS”) Exchange Traded Funds (“ETF”) purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them. In Switzerland, JPMorgan Asset Management Switzerland LLC (JPMAMS), Dreikönigstrasse 37, 8002 Zurich, acts as Swiss representative of the funds and J.P. Morgan (Suisse) SA, Rue du Rhône 35, 1204 Geneva, as paying agent. With respect to its distribution activities in and from Switzerland, JPMAMS receives remuneration which is paid out of the management fee as defined in the respective fund documentation. Further information regarding this remuneration, including its calculation method, may be obtained upon written request from JPMAMS. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

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