1 The optional lifetime income feature refers to a guaranteed withdrawal strategy supported by insurers selected by JPMAM that is expected to provide eligible plan participants with a stream of lifetime income payments. The SmartRetirement Lifetime Income product includes a suite of target date collective investment funds that, ten years prior to the target retirement date in a fund’s name, will begin to incorporate allocations to group annuity contracts issued by unaffiliated insurers to support the optional lifetime income feature. The lifetime income feature is being designed to allow participants to spend down their investment in a fund that allocates its assets to the group annuity contracts issued by the unaffiliated insurers (the “Lifetime Retirement Income Fund”) over a period of time that is linked to average life expectancies, and then, upon satisfaction of pre-determined conditions, receive annuity payments directly from the supporting insurers. JPMAM will not guarantee the obligation of the unaffiliated supporting insurers to make annuity payments directly to the plan participant. Participants in the Lifetime Retirement Income Fund will have proportionate exposure to each supporting insurer’s group annuity contract.
2 Retirement plan participants that opt-in to the lifetime income feature will invest some or all of their in-plan assets in the Lifetime Retirement Income Fund. Any remaining in-plan assets that are not directed to the Lifetime Retirement Income Fund can remain invested in the market through a collective investment fund, which is designed to complement a lifetime income stream (the “Flexible Retirement Income Fund”).
3 A guaranteed income stream is contingent upon various factors including, but not limited to, the claims paying ability and financial strength of the issuing unaffiliated insurance company, and the participant satisfying certain pre-determined conditions, including making only the guaranteed minimum withdrawals. The withdrawal from the Lifetime Retirement Income Fund (including shifting funds from the Lifetime Retirement Income Fund to another investment) of amounts in excess of the prescribed retirement strategy may result in the forfeiture of fees paid to the unaffiliated issuing insurance companies and the reduction or forfeiture of annuity payments by the insurers. JPMAM will not guarantee the obligation of the unaffiliated insurers to make annuity payments.
4 Withdrawing more than the guaranteed minimum withdrawal amount in a calendar year (including shifting funds from the Lifetime Retirement Income Fund to another investment) may result in a reduction or forfeiture of the annuity payments to be made by insurers under the group annuity contracts.
5 The SmartRetirement Lifetime Income product includes a suite of target date collective investment funds that, ten years prior to the target retirement date in a fund’s name, will begin to incorporate allocations to the Lifetime Retirement Income Fund which in turn will invest in group annuity contracts issued by unaffiliated insurers to support the optional lifetime income feature that is part of the Spending Phase. The optional lifetime income feature’s guaranteed income stream is contingent upon various factors including, but not limited to, the claims paying ability and financial strength of the issuing unaffiliated insurance company, and the participant meeting the requirements of pre-determined conditions, including making only the guaranteed minimum withdrawals. The withdrawal of amounts in excess of the prescribed retirement strategy (including shifting funds from the Lifetime Retirement Income Fund to another investment) may result in the forfeiture of fees paid to the unaffiliated issuing insurance companies and the reduction or forfeiture of annuity payments by the insurers. JPMAM will not guarantee the obligation of the unaffiliated insurers to make annuity payments.
6 A stable value investment structure is generally a more conservative investment approach; however, there is no assurance that the fund will achieve its investment objectives.
7 JPMAM does not guarantee the suitability or potential value of any particular investment. Investing in the SmartRetirement Lifetime Income product involves risks, including possible loss of principal. The Lifetime Retirement Income Fund is subject to investment risks including but not limited to investment contract event-related risk (e.g., any event outside of the normal operation of the fund which causes a withdrawal from an investment contract may result in a negative market value adjustment) and investment contract issuer risk (e.g., if the contract issuer (i.e., the unaffiliated issuing insurer) defaults or becomes insolvent, the fund could sustain a loss if the market value of the covered assets is less than the book value of the contract, and replacement coverage is not obtained.)
8 Retirement plan participants that opt-in to the lifetime income feature will invest some or all of their in-plan assets in the Lifetime Retirement Income Fund and any remaining in-plan assets that are not directed to the Lifetime Retirement Income Fund can remain invested in the market through the Flexible Retirement Income Fund.
9 The optional lifetime income feature refers to a guaranteed withdrawal strategy supported by insurers selected by JPMAM that is expected to provide eligible plan participants with a stream of lifetime income payments. The lifetime income feature is designed to allow participants to make guaranteed minimum withdrawals from their investment in the Lifetime Retirement Income Fund over a period of time that is linked to average life expectancies, and then, upon satisfaction of pre-determined conditions, to receive annuity payments directly from the supporting insurers. JPMAM will not guarantee the obligation of the unaffiliated supporting insurers to make annuity payments directly to the plan participant. Participants in the Lifetime Retirement Income Fund will have proportionate exposure to each supporting insurer’s group annuity contract.
10 My Retirement Income Planner is an intuitive digital experience designed for educational purposes only, is not intended to provide investment advice, and should not be considered individualized investment advice. JPMAM does not guarantee the suitability or potential value of any particular investment. The material in My Retirement Income Planner does not constitute a recommendation by JPMAM, or an offer to sell, or a solicitation of any offer to buy or sell any securities, products or service. The projections or other information generated by the My Retirement Income Planner regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
11 The projections or other information generated by a participant using the My Retirement Income Planner are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
12 Retirement plan participants that opt-in to the lifetime income feature will invest some or all of their in-plan assets in the Lifetime Retirement Income Fund and any remaining in-plan assets that are not directed to the Lifetime Retirement Income Fund can remain invested in the Flexible Retirement Income Fund. Any social security benefit is estimated and based on the assumption that the participant will begin collecting their benefit at the assumed retirement age of 65 unless otherwise indicated by the participant and is dependent on various factors including, but not limited to, the amount contributed, the age that the participant began contributing and the financial strength of Social Security.
Target Date Funds: The JPMCB SmartRetirement Lifetime Income Funds (the “Funds”) are target date funds with the target date being the approximate date when plan participants expect to retire. Generally, the asset allocation of each Fund will change on an annual basis with the asset allocation becoming more conservative as each Fund nears its target retirement date. The principal value of the Fund(s) is not guaranteed at any time, including at or after the target date.
Risks Associated with Investing in the Funds: The Funds are not a complete retirement program and there is no guarantee that any of the Funds will provide sufficient retirement income to a plan participant. Meeting the retirement goals of a plan participant is dependent upon many factors, including the amount they save and the period over which they do so. Plan participants should consider their expected retirement date, individual retirement needs (i.e., how much money they expect to need), other expected income after retirement, inflation, other assets, and risk tolerance in choosing whether to invest in a Fund. The risk tolerance of plan participants may change over time and a Fund’s target allocation model may also change. It is important that plan participants periodically re-evaluate their investment in a Fund. JPMorgan Chase Bank, N.A. (“JPMAM”) seeks to achieve the Funds’ stated objectives; however there can be no guarantee the objectives will be met. Investing in these strategies carries a certain amount of risk. There can be no guarantee that investing in these strategies will prevent loss of an investment. Furthermore, the Funds may operate as a “fund of funds” and there may be additional fees or expenses associated with investing in a fund of funds strategy.
To achieve its objective, each Fund may invest in other underlying collective trust funds and exchange-traded funds, so a Fund’s investment performance is directly related to the performance of the underlying funds. The investment objective of underlying funds may differ from, and underlying funds may have different risks than, such Fund. There is no assurance that the underlying funds will achieve their investment objectives.
Material risks are associated with the Funds’ investment strategy. A summary of such risks are set forth herein, and a more comprehensive description is set forth in the Funds’ Fund Summary.
JPMAM does not guarantee the suitability or potential value of any particular investment. Investing in the SmartRetirement Lifetime Income product involves risks, including possible loss of principal. Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal.
International investing involves increased risk and volatility due to possibilities of currency exchange rate volatility, political, social or economic instability, foreign taxation and differences in auditing and other financial standards. Small-capitalization investments typically carry more risk than investments in well-established “blue-chip” companies since smaller companies generally have a higher risk of failure. Historically, smaller companies’ stock has experienced a greater degree of market volatility than the average stock. Securities rated below investment grade are considered “high-yield,” “non-investment grade,” “below investment-grade” or “junk bonds.” They generally are rated in the fifth or lower rating categories of Standard & Poor’s and Moody’s Investors Service. Although they can provide higher yields than higher rated securities, they can carry greater risk. Real estate investing may be subject to increased market risk because of concentration in a specific industry, sector or geographical sector. These risks include, but are not limited to, declines in real estate value, risks related to general and economic conditions, changes in underlying value of property owned by the trust and defaults by borrower.
Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss.
The Funds were established and maintained by JPMAM under and pursuant to the Declaration of Trust for the JPMorgan Chase Bank, N.A. SmartRetirement Lifetime Income Funds (the “Declaration of Trust”). The Funds are not required to file a prospectus or registration statement with the SEC, and accordingly, neither is available. The Funds are available only to certain qualified retirement plans and governmental plans and are not offered to the general public. Units of the Funds are not bank deposits and are not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges and expenses of the fund before investing.
JPMAM is not an insurance company or insurance producer, and makes no representations or recommendations whatsoever about any specific insurance products. Group annuities which support lifetime income payments to investors who have invested in the Lifetime Retirement Income Fund are issued by third-party insurance companies that are not affiliated with JPMAM or its affiliates. This page does not constitute a recommendation by JPMAM, or an offer to sell, or a solicitation of any offer to buy or sell any securities, product or service. The information on this page is for educational purposes only, is not intended to provide investment advice, and should not be considered individualized investment advice.
Any obligations, guarantees or benefits of the contracts are subject to the insurance companies’ claims-paying ability. The insurance companies are the only entities responsible for the obligations, guarantees and benefits associated with the group annuities, not JPMAM, JPMorgan or their affiliates. Liquidity or solvency issues of the insurance companies may affect their ability to satisfy the terms of the contracts. Any questions relating to an investor’s rights under such annuities, or the benefits, terms, or conditions thereof should be directed to the issuing insurance company. Furthermore, a plan or plan recordkeeper may not provide sufficient information about the plan’s and its participants’ investment activity in the Funds for an insurance company to accurately account for the future lifetime income interests that may be available to a plan’s participants through the Lifetime Retirement Income Fund.
JPMAM will charge an all-in management fee for managing the SmartRetirement Lifetime Income Funds, the Lifetime Retirement Income Fund and the Flexible Retirement Income Fund plus certain service fees. Additionally, individual plan participants that have elected to opt-in to the lifetime income feature will be charged a premium by the unaffiliated issuers of the group annuity contracts that support the lifetime income feature. The optional lifetime income feature’s guaranteed income stream is contingent upon various factors including, but not limited to, the claims paying ability and financial strength of the issuing unaffiliated insurance company, and the participant satisfying certain pre-determined conditions, including making only the guaranteed minimum withdrawals. The withdrawal from the Lifetime Retirement Income Fund (including shifting funds from the Lifetime Retirement Income Fund to another investment) of amounts in excess of the prescribed retirement strategy may result in the forfeiture of fees paid to the unaffiliated issuing insurance companies and the reduction or forfeiture of annuity payments by the insurers. JPMAM will not guarantee the obligation of the unaffiliated insurers to make annuity payments.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.
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