Equities for Tough Times - J.P. Morgan Asset Management
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Equities for Tough Times

Funds for volatile markets should offer cushion

Consider three equity solutions designed to deliver upside participation with lower volatility on the downside.

Which equity funds can offer a smoother ride through volatile markets?

Those that keep investors invested for the long run – participating in gains while the market rises, but cushioning losses when the market falls. Compare the up and down capture ratios for these three funds to find an appropriate fit.

 


View standardized performance and fees for:
Hedged Equity Fund   Diversified Return U.S. Equity ETF   Equity Income Fund  

Aiming to mitigate losses on the downside while participating in gains on the upside


Chart source: Morningstar; J.P. Morgan Asset Management; as of 6/30/19. Up capture measures performance of the manager relative to the S&P 500 Index in down markets, while up capture measures performance of the manager relative to the S&P 500 Index in up markets. Up/down capture based on monthly return data from fund inception for Hedged Equity Fund I shares (12/13/13) and JPUS (9/29/15) and fund manager inception (1/1/05) for Equity Income Fund I shares. Minimum eligibility requirements for the I share class apply; please see prospectus for further details. Stock market as measured by the S&P 500 Index. For illustrative purposed only. Past performance does not guarantee future results.

  JHEQX  

Hedged Equity Fund

By combining our proven equity research with a disciplined index options strategy, the Fund enables investors to participate in equity market gains, while mitigating risk in declining markets.

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  JPUS  

Diversified Return U.S. Equity ETF

JPUS tracks an index whose methodology is designed to capture market upside while providing less volatility in down markets compared to a market cap-weighted index.                                     

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  HLIEX  

Equity Income Fund

With a focus on high-quality companies with healthy and sustainable dividends, the Fund provides a conservative, lower volatility way to participate in U.S. equity markets.                              

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ETFs and mutual funds are different investment vehicles. ETFs are funds that trade like other publicly traded securities. Similar to shares of an index mutual fund, each ETF share represents an ownership interest in an underlying portfolio of securities and other instruments typically intended to track a market index. Unlike shares of a mutual fund, shares of an ETF may be bought and sold intraday.

Investing involves risk, including possible loss of principal. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. There is no guarantee the Funds will meet their investment objectives. Diversification may not protect against market loss.
Hedged Equity Fund: Utilizing a strategy with a diversified equity portfolio and derivatives, with a Put/Spread Collar options overlay, may not provide greater market protection than other equity investments nor reduce volatility to the desired extent, as unusual market conditions or the lack of a ready option market could result in losses. Derivatives expose the Fund to risks of mispricing or improper valuation and the Fund may not realize intended benefits due to underperformance. When used for hedging, the change in value of a derivative may not correlate as expected with the risk being hedged.
JPMorgan Diversified Return U.S. Equity ETF (JPUS): ETF shares are bought and sold throughout the day on an exchange at market price (not NAV) through a brokerage account, and are not individually redeemed from the fund. Shares may only be redeemed directly from a fund by Authorized Participants, in very large creation/redemption units. For all products, brokerage commissions will reduce returns. The Fund uses derivatives, which may be riskier than other types of investments and may increase the volatility of a fund. The Fund may not track the return of its underlying index for a number of reasons, such as operating expenses incurred by a fund that are not applicable to an index, and the time difference between calculating the value of an index and the net asset value of a fund.
Equity Income Fund: The prices of equity securities are sensitive to a wide range of factors, from economic to company-specific news, and can fluctuate rapidly and unpredictably, causing an investment to decrease in value. There is no guarantee that companies will declare, continue to pay or increase dividends.
Index returns are for illustrative purposes only. Mutual funds and ETFs have fees that reduce their performance; indexes do not. You cannot invest directly in an index.

J.P. Morgan Investment Management Inc. (JPMIM), the adviser and an affiliate of the Fund(s), is the sponsor of the Underlying Index and FTSE International Limited, administers, calculates and governs each Underlying Index as the Benchmark Administrator.

London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®” “Russell®”, “FTSE Russell®”, are a trade mark(s) of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the Indexes for the Funds other than the BetaBuilders Funds vest in JPMIM or its licensors. Neither FTSE Russell nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No use or distribution of the indexes is permitted without JPMIM's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10- year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Rankings do not take sales loads into account.

Lipper classification averages are calculated with all eligible share classes for each eligible classification. Lipper does not guarantee the accuracy or reliability of its data. Use this data at your own risk, without any warranty, condition, or guarantee from Lipper. This is not an offer to buy or sell securities. For details, go to lipperweb.com. The performance of the Lipper Indices includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund.