U.S. Equity: Returning shareholder value in a recovering market FOR INSTITUTIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION

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1 U.S. Equity: Returning shareholder value in a recovering market

2 U.S. Equity market overview 1

3 Despite sluggish economic growth, profits are very strong S&P 500 Earnings Per Share Operating basis, quarterly $26 $23 $20 $17 $14 2Q07: $24.06 Most recent: Adjusted after-tax corporate profits (% of GDP) $24.24 Includes inventory and capital consumption adjustments t 11% 4Q11: 10.3% 10% 9% 8% $11 $8 7% 6% 50-year avg.: 6.2% $5 $2 -$1 '02 '04 '06 '08 '10 '12. Source: (Left) Standard & Poor s, J.P. Morgan Asset Management. EPS levels are based on operating earnings per share. Most recently available is a 3Q11 99% complete estimate. (Right) BEA, FactSet, J.P. Morgan Asset Management. Data reflect most recently available as of 3/31/12. Shown for illustrative purposes only. Please see disclosure page for index definitions. 5% 4% 3% '65 '70 '75 '80 '85 '90 '95 '00 '05 '10 2

4 We see increasing signs of recovery in cyclical sectors Light Vehicle Sales Millions, seasonally adjusted annual rate Average: May 2012: 13.7 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 Manufacturing and Trade Inventories Days of sales, seasonally adjusted Apr. 2012: '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 Housing Starts Thousands, seasonally adjusted annual rate 2,400 2,000 Real Capital Goods Orders Non-defense capital goods orders ex. aircraft, $ bn, seasonally adjusted ,600 1, Average: 1,442 May 2012: '75 '80 '85 '90 '95 '00 '05 ' Average: 57.5 May 2012: 57.3 '98 '00 '02 '04 '06 '08 '10 '12 Source: (Top left) BEA, FactSet, J.P. Morgan Asset Management. (Top right) Census Bureau, FactSet, J.P. Morgan Asset Management. (Bottom left) Census Bureau, FactSet, J.P. Morgan Asset Management. (Bottom right) Census Bureau, FactSet, J.P. Morgan Asset Management. Capital goods orders deflated using the producer price index for capital goods. Data reflect most recently available as of 3/31/12. Shown for illustrative purposes only. 3

5 Valuation: U.S. equities look attractive relative to other asset classes Price-to-earnings ratio JPM normalized earnings Peak P/E: 26.2 Normalized P/E as of March 31, 2012: 12.1 Equity risk premiums vs. corporate bonds 5% ERP (BAA Corporates) Average 4% 3% 2% Average normalized P/E: 16.4 Trough P/E: 8.4 1% 0% -1% % Source: J.P. Morgan Asset Management, Bloomberg; as of 3/31/12. Shown for illustrative purposes only. Equity risk premium is equal to J.P. Morgan Asset Management dividend discount rate (DDR) on S&P 500 stocks, less current yield to maturity on 10-year U.S. Treasury bonds and BAA corporate bonds. A DDR is the discount rate that equates the present value of the estimated stream of future dividends to the current market price. The J.P. Morgan S&P 500 DDR is a bottom-up, sectorneutral and capitalization-weighted average of DDRs on large-capitalization stocks as estimated by J.P. Morgan Asset Management equity research analysts. A DDR does not represent a stock's expected actual return in any given time period. Based on the bottom-up earnings projections of S&P 500 companies for the normalized year (2012) by J.P. Morgan large-cap analysts. 4

6 Both growth stocks and income stocks look attractive Growth: While growth stocks have outperformed core/value since the peak in 2007, growth still looks cheap based on historical data Growth stocks have seen increased earnings growth as a result of innovation Growthier sectors, such as technology and consumer discretionary, appear cheap relative to history Income: The best-performing stocks over the last 20 years have been those with aboveaverage yields and below-average payouts Historically, dividend yields have been an important component of total market returns: Dividend-paying stocks have outperformed non-dividend paying stocks for 9 of the last 12 calendar years* * Source: Empirical Research; as of 12/31/11. There is no assurance or guarantee that companies that issue dividends will declare, continue to pay or increase higher dividends. 5

7 U.S. equity research: Career analysts drive our investment process Finance Consumer Helge Skibeli Director of Research Industry: 26 yrs Firm: 22 yrs James Brown (C) Basic Materials Industry: 28 yrs Firm: 25 yrs Industrials Nishesh Kumar (C) Energy Industry: 15 yrs Firm: 14 yrs Leslie Rich (C) Utilities Industry: 19yrs Firm: 2 yrs David Maccarrone (C) Infrastructure Industry: 17 yrs Firm: 1 yr Steven Lee (C) Autos & Transport Industry: 19 yrs Firm: 7 yrs David Pasquale (C) Industrial Cyclicals Industry: 15 yrs Firm: 6 yrs (C) Core; (G) Growth; (V) Value; (S) Small cap As of June 2012 Kay Herr * Associate Director of Research Industry: 17 yrs Firm: 13 yrs Tim Woods (G) Energy, Industrials, & Materials Industry: 25 yrs Firm: 4 yrs Felise Agranoff (S) Energy /Industrials, & Materials Industry: 8 yrs Firm: 8 yrs Lerone Vincent (C/V) Basic Materials Industry: 14 yrs Firm: 14 yrs Andrew Miller (C/V) Autos & Transport Industry: 7 yrs Firm: 7 yrs Patrick Parr (V) Industrial Cyclicals Industry: 15 yrs Firm: 6 yrs Don San Jose (S) Generalist/ Industrials Industry: 15 yrs Firm: 11 yrs Urmas Wompa (C) Regional Banks Industry: 28 yrs Firm: 25 yrs Steven Wharton (C) Capital Markets Industry: 16 yrs Firm: 6 yrs David Small (C) Insurance Industry: 12 yrs Firm: 7 yrs Dan Percella (S) Generalist/ Banking & Finance Industry: 10 yrs Firm: 4 yrs Technology Luke Szymczak (C) Network/Telecom Industry: 25 yrs Firm: 12 yrs Nitin Bhambhani (C) Software/Services Industry: 18 yrs Firm: 16 yrs Robert Bowman (C) Semi/Hardware Industry: 19 yrs Firm: 19 yrs Ryan Vineyard (C) Telecom Industry: 7 yrs Firm: <1 yr Jason Ko (C) REITs Industry: 10 yrs Firm: 10 yrs Julie Ho (C) REITs Industry: 7 yrs Firm: 7 yrs Andrew Brandon (C/V) Financials Industry:14 yrs Firm: 12 yrs Shilpee Raina (V) Generalist/ Financial Services Industry: 7yrs Firm: 7 yrs Larry Lee (G) IT/Business Services Industry: 19 yrs Firm: 6 yrs Greg Tuorto (S) Technology Industry: 19 yrs Firm: 4 yrs Laura Huang (C) IT Services Industry: 7 yrs Firm: 7 yrs Jon Brachle (S) Generalist/ Technology Industry: 5 yrs Firm: 5 yrs Kathleen Stack (C) Consumer Stable Industry: 34 yrs Firm: 31 yrs Scott Davis (C) Media Industry:15 yrs Firm: 6 yrs Greg Fowlkes (C) Retail Industry: 12 yrs Firm: 7 yrs Massimo Marolo (C) Retail Industry: 10 yrs Firm: 6 yrs Healthcare Dr. Scott Braunstein (C) Pharma/ Biotech Industry: 21 yrs Firm: 10 yrs Laurence McGrath (C) Health Svcs/Medtech Industry:15 yrs Firm: 1 yr Matt Perry (C) Healthcare Industry: 11 yrs Firm: 1 yr Tim Gamache (C/V) Consumer Industry: 7 yrs Firm: 7 yrs Anthony Attardo (S) Consumer Discretionary Industry: 13 yrs Firm: 13 yrs Nancy Hoch (G) Consumer Industry: 18 yrs Firm: 10 yrs Lisa S. Sadioglu (C) Consumer Cyclicals Industry: 12 yrs Firm: 12 yrs Dr. Matt Cohen (S) Health Care Industry: 12 yrs Firm: 7 yrs Holly Pippitt (G) Healthcare Industry: 8 yrs Firm: <1 yr * Kay Herr is also a co-portfolio manager for the REIT strategies 6

8 Value 7

9 Equity Income Fund employs a three-step investment approach Our bottom-up fundamental philosophy targets high-quality U.S. companies with attractive valuations and healthy dividend yields We focus on QUALITY first We target companies with durable franchises, consistent patterns of earnings, high return on invested capital (ROIC), conservative financials and strong management teams Valuation is critical to our entry and exit points Dividends enhance total return We focus on companies with attractive dividend yields and low payout ratios Our approach leads to a portfolio that has historically shown less volatility than the market with less exposure to the downside The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. There is no assurance or guarantee that companies that issue dividends will declare, continue to pay or increase higher dividends. 8

10 Historically, dividend yields have been an important component of total market returns S&P 500 returns by decade: Dividends vs. Capital appreciation 20% Dividends Capital appreciation 15% 10% 5% 0% -5% 13.9% 13.6% 12.6% 15.3% 3.0% 4.4% 1.6% 6.2% 47% 4.7% 54% 5.4% 60% 6.0% 51% 5.1% 3.3% 42% 4.2% 44% 4.4% 2.5% 1.8% 2.1% -2.7% -5.3% 5.5% 4.1% -10% 's 1940's 1950's 1960's 1970's 1980's 1990's 2000's 2010's 1926 to 2011 Source: Standard & Poor s, Ibbotson, J.P. Morgan Asset Management; as of 12/31/11. Past performance does not guarantee future results. Shown for illustrative purposes only. Please see disclosure page for index definitions. 9

11 Dividends are important, but so is the ability to pay the dividend quality matters 1 The best performing stocks over the 400% past 20 years have been those with above average dividend yields and 350% below average payout ratios Focus on payout ratio not just the company s dividend yield Low payout ratio indicates a disciplined use of capital by management Equal-weighted performance from December 31, 1990 to June 30, % Companies still have ample cash to reinvest for future business growth 150% A company s earnings stream should: High dividend yield, Low payout ratio Low dividend yield, Low payout ratio No dividend High dividend yield, High payout ratio S&P % Low dividend yield, High payout ratio 200% 100% Support the current yield even in difficult markets 50% 0% Source: Credit Suisse Quantitative Equity Research 1 US equities returned 6 percent on average since However, without dividends the annual gain drops to 1.7 percent; Treasury bonds returned 2.1 percent during the same period. According to inflation adjusted data complied by the London Business School and Credit Suisse Group AG. The charts and/or graphs shown above and throughout the presentation are for illustration and discussion purposes only. There is no guarantee that companies that can issue dividends will declare, continue to pay, or increase dividends. 10

12 We re focused on companies with durable franchises and steady patterns of earnings Broad emphasis on companies with steady state business models and growth opportunities drives attractive up/down capture ratio (2011 = 93.88%/63.44%) McDonald s and Tupperware Consumer names with strong brands, product loyalty and competitive advantages are being rewarded Emphasis on affordable luxury Hershey s and VF Corp. Attractive entry points on names that will benefit from an eventual housing recovery Home Depot The securities highlighted g above were selected based on significance and are shown for illustrative purposes p only. It is not a recommendation. 11

13 Investment Thesis: T. Rowe Price Group, Inc. Quality Attributes Durable franchise Dominant mutual fund franchise with strong performance Ability to garner assets and take market share Steady pattern of earnings Organic growth rate amongst the highest in the industry Diversified business model with international expansion Strong cash flow generation and balance sheet Business model not predicated on spread lending or availability of capital Disciplined use of capital management Solid capital position providing flexibility ygoing g forward Clare Hart anticipates management will remain opportunistic buyers of the shares Valuation Trading at a discounted P/E multiple Net cash/investments on balance sheet TROW Stock Price (5 Yr) $70 $60 $50 $40 $30 $20 $10 Attractive dividend characteristics $0 Dividend yield: 2.2% 1 year dividend growth rate: 12% Payout ratio (as a % of trailing EPS): 47% Ju un-06 Ju un-07 Ju un-08 Ju un-09 Ju un-10 Ju un-11 Ju un-12 1 Figures as of 6/30/12 Source: Bloomberg, Factset, J.P. Morgan Asset Management There is no guarantee this holdings will remain in the portfolio and holdings may change at the portfolio manager s discretion without notice. This company is shown for illustrative purposes only. Its inclusion should not be interpreted as a recommendation e o to buy or sell. 12

14 Investment Thesis: Cinemark Quality attributes Underappreciated franchise 3rd largest theatre exhibitor in the US US Box Office trends have been remarkably resilient through economic cycles Material and growing Latin American footprint represents a hidden gem within portfolio CNK Stock Price (since 4/23/07 IPO) $30 $25 Steady pattern of earnings Consistently outperforms industry with superior attendance and $20 concession trends Geographically diversified portfolio drives attractive earnings growth profile $15 Strong cash flow generation and balance sheet Attractive ti theatre t profit margins enables significant ifi cash generation $10 Ability to balance shareholder return of capital through dividends while investing in Latin America Valuation $5 On an EV/EBITDA basis its trading at a discount to historic levels & peers despite better ROIC Attractive dividend characteristics Dividend yield: 3.6% 1 year dividend growth rate: 4% Payout ratio (in terms of operating cashflow): 24% 1 Figures as of 6/30/12 Source: Bloomberg, Factset, J.P. Morgan Asset Management There is no guarantee this holdings will remain in the portfolio and holdings may change at the portfolio manager s discretion without notice. This company is shown for illustrative purposes only. Its inclusion should not be interpreted as a recommendation to buy or sell. $0 Ju un-06 Ju un-07 Ju un-08 Ju un-09 Ju un-10 Ju un-11 Ju un-12 13

15 J.P. Morgan Equity Income Fund performance As of June 30, 2012 YTD 1 year 3 years 5 years Since PM Inception 10 years PM Inception date J.P. Morgan Equity Income Fund Sel. 7.55% 7.48% 18.68% 1.62% 5.40% 6.07% December 31, 2004 Russell 1000 Value Index 8.68% 3.01% 15.80% -2.19% 2.96% 5.28% Excess vs. benchmark -1.13% 4.47% 2.88% 3.81% 2.44% 0.79% Morningstar ranking Information ratio Morningstar ranking Sharpe ratio Morningstar ranking Calendar year returns J.P. Morgan Equity Income Fund Sel. 7.6% 18.9% 17.5% -29.7% 1.6% 21.0% 6.1% Russell 1000 Value Index 0.4% 15.5% 19.7% -36.9% -0.2% 22.2% 7.1% Excess vs. benchmark 7.2% 3.4% -2.2% 7.2% 1.8% -1.2% -1.0% The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end please call As of June 30, 2012, in terms of excess returns the Equity Income Fund was ranked in the Morningstar Large Value category for the following time periods: 518 out of 1,295 for the year-to-date period, 63 out of 1,263 funds for the one year period, 36 out of 1,196 funds for the three year period, 68 out of 1,133 funds for the five year period, 74 out of 1,064 funds since PM inception period, and 110 out of 915 funds for the ten year period. As of June 30, 2012, in terms of information ratio the Equity Income Fund was ranked in the Morningstar Large Value category for the following time periods: 63 out of 1,263 funds for the one year period, 48 out of 1, funds for the three year period, 69 out of 1,133 funds for the five year period, 74 out of 1,064 funds since PM inception period, and 140 out of 915 funds for the ten year period. As of June 30, 2012, in terms of Sharpe ratio the Equity Income Fund was ranked in the Morningstar Large Value category for the following time periods: 76 out of 1,263 funds for the one year period, 24 out of 1,196 funds for the three year period, 79 out of 1,133 funds for the five year period, 64 out of 1,064 funds since PM inception period, and 110 out of 915 funds for the ten year period. The J.P. Morgan Equity Income Fund was ranked in the Morningstar Large Cap Value Universe Past performance does not guarantee future results. Total returns assumes reinvestment of any income. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges or redemption fees. Performance may reflect the waiver of a portion of the Fund's advisory or administrative fees for certain periods since the inception date. If fees had not been waived, performance would have been less favorable. 14

16 Historically, our approach is challenged in high-beta markets, as it was in : Low-quality, high-beta stocks drove market returns beginning March 9, 2009 Calendar year returns JPM Equity Income Fund (Select Shares) 7.6% 18.9% 17.5% -29.7% 1.6% Russell 1000 Value Index 0.4% 15.5% 19.7% -36.9% -0.2% Excess Return vs. Russell 1000 Value Index 7.2% 3.4% -2.2% 7.2% 1.8% The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end, please call Source: J.P. Morgan Asset Management; Frank Russell Company 15

17 Equity Income had top-quintile performance coupled with bottom-quintile volatility JPMorgan Equity Income Fund had top-decile performance coupled with bottom-decile volatility 25% 20% Standard Deviation over trailing five years 16.54% 20.00% 20.39% Key takeaways: 15% 10% 5% Offered less volatility than both its peers and the benchmark Lower volatility: 8 th percentile standard deviation for trailing 5 years* 0% 100% 80% 60% 40% 20% 0% JPMorgan Equity Income Fund Morningstar LCV Average Russell 1000 Value Index Down Capture over trailing five years 95.46% 73.11% JPMorgan Equity Income Fund Morningstar LCV Average In down markets, the Fund declined only 73.11% as much as the declining overall market, indicating relative outperformance Better downside capture: 8 th percentile downside capture for trailing 5 years** Consistent performance: 1 st percentile batting average for trailing 5 years*** 100% 80% 60% 40% 20% 0% Batting average over trailing five years 67% JPMorgan Equity Income Fund 48% Morningstar LCV Average Demonstrated the Fund s ability to meet or beat the market on a consistent basis Source: J.P. Morgan Asset Management, Morningstar; as of 6/30/12. Past performance is no guarantee of future returns. Performance is annualized, net of fee for Select Shares in the Morningstar Large Value Category. For the trailing five-year period, 1,170 total funds are measured. For the since inception period, 1,073 total funds are measured. * Risk is measured by standard deviation, which is a gauge of the variance of a manager's return over its average or mean. Statistically, it is the square root of the variance. ** Down capture measures performance of the manager relative to the index in down markets. *** Consistency is measured by batting average, which is calculated by dividing the number of quarters (or months) in which the manager beats or matches the index by the total number of quarters (or months) in the period. **** PM inception is August

18 Results: Excess returns As of March 31, 2012 JPM Equity Income Fund (Select: HLIEX) Morningstar Overall Rating Value 1 yr 3 yrs 5 yrs 10 yrs SI* Select Russell 1000 Value Index Excess JPM U.S. Equity Fund (Select: JUESX) Morningstar Overall Rating Core JPM Large Cap Growth Fund (Select: SEEGX) Morningstar Overall Rating Growth JPM Mid Cap Value (Select: JMVSX) Morningstar Overall Rating Mid Value Select S&P 500 Index Excess Select Russell 1000 Growth Index Excess Select Russell Mid Cap Value Index Excess JPM Value Advantage Select (Select: JVASX) Russell 3000 Value Index Morningstar Overall Rating Excess Mid Value The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end, please call Source: Morningstar. Morningstar Ratings as March 31, 2012, for funds with greater than three-year track record. Past performance is no guarantee of future results. Different share classes may have different ratings. JPMorgan Equity Income Fund: 5 star Overall Rating (Select Shares); Large Value Category; 1,098 funds.three-year period, 5 stars; 1,098 funds. Five-year period, 5 stars; 973 funds. Ten-year period, 4 stars; 570 funds. JPMorgan U.S. Equity Fund: 4 star Overall Rating (Select Shares); Large Blend Category; 1,578 funds. Three-year period, 3 stars; 1,578 funds. Five-year period, 5 stars; 1,387 funds. Ten-year period, 4 stars; 843 funds. JPMorgan Large Cap Growth Fund: 5 star Overall Rating (Select Shares); Large Growth Category; 1,459 funds. Three-year period, 5 stars; 1,459 funds. Five-year period, 5 stars; 1,266 funds. 10-year period, 4 stars; 816 funds. JPMorgan Mid Cap Value Fund: 5 star Overall Rating (Select Shares); Mid-Cap Value Category; 353 funds. Three-year period, 4 stars; 353 funds. Five-year period, 4 stars; 309 funds. 10-year period, 5 stars; 153 funds. JPMorgan Value Advantage Fund: 4 star Overall Rating (Select Shares); Mid-Cap Value Category; 1,459 funds. Three-year period, 5 stars; 353 funds. Five-year period, 4 stars; 309 funds. 10-year period for all share classes is not yet rated. Ratings reflect risk-adjusted d performance. Please see disclosure page for index definitions. iti 17

19 Next steps We believe equities offer attractive opportunities The market environment should favor fundamental research and active management Bottom line We want to be a critical component of your equity allocation and We want to be your most important asset manager and advisor 18

20 J.P. Morgan Asset Management Contact JPMorgan Distribution Services at for a fund prospectus. You can also visit us at Investors should carefully consider the investment objectives and risks as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing. This document is intended solely to report on various investment views held by 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 but should not be assumed to be accurate or complete. The 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. Please note that investments in foreign markets are subject to special currency, political and economic risks. RISKS ASSOCIATED WITH INVESTING IN THE FUND JPMorgan Equity Income Fund 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 Fund s 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 fund invests) may decline over short or extended periods of time. When the value of a fund s securities goes down, an investment in a fund decreases in value. The Fund may invest in derivatives, which may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the Fund s original investment. Many derivatives create leverage, thereby causing the Fund to be more volatile than it would be if it had not used derivatives. RISKS ASSOCIATED WITH INVESTING IN THE FUND JPMorgan Large Cap Growth Fund 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 Fund s 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 fund invests) may decline over short or extended periods of time. When the value of a fund s securities goes down, an investment in a fund decreases in value. RISKS ASSOCIATED WITH INVESTING IN THE FUND JPMorgan Mid Cap Value Fund Mid-cap funds typically carry more risk than stock funds investing in well-established "blue-chip" companies. Historically, mid-cap companies' stock has experienced a greater degree of market volatility than the average stock. 19

21 J.P. Morgan Asset Management RISKS ASSOCIATED WITH INVESTING IN THE FUND JPMorgan U.S. Equity Fund The Fund may invest a portion of its securities in small-cap stocks. Small-capitalization funds typically carry more risk than stock funds investing 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. Mid-cap funds typically carry more risk than stock funds investing in well- established "blue-chip" companies. Historically, mid-cap companies' stock has experienced a greater degree of market volatility than the average stock. RISKS ASSOCIATED WITH INVESTING IN THE FUND JPMorgan Value Advantage Fund Mid-cap funds typically carry more risk than stock funds investing in well-established "blue-chip" companies. Historically, mid-cap companies' stock has experienced a greater degree of market volatility than the average stock. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end, please call , Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damage or losses arising from any use of this information. For each fund with a three-year history, Morningstar calculates a Morningstar Rating metric each month by subtracting the return on a 90-day U.S. Treasury bill from the fund's loadadjusted return for the same period, and then adjusting this excess return for risk. The top 10% of funds in each broad asset class 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 fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Past performance is no guarantee of future results. Different share classes may have different ratings. The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies (on the basis of capitalization) in the Russell 3000 Index. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index is an unmanaged index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index is an unmanaged index that measures the performance of the 2,000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The S&P 500 Index is a capitalization-weighted index that measures the performance of 500 large-capitalization domestic stocks representing all major industries. All indexes are unmanaged and an individual cannot invest directly in an index. Index returns do not include fees or expenses. 20

22 J.P. Morgan Asset Management Total return assumes reinvestment of dividends and capital gains distributions and reflects the deduction of any sales charges, where applicable. Performance may reflect the waiver of a portion of the Fund's advisory or administrative fees for certain periods since the inception date. If fees had not been waived, performance would have been less favorable. 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. J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC. 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, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc. JPMorgan Chase & Co., June