FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
FUND STORY | 31 DECEMBER 2015
JPMorgan Funds –
US Opportunistic Long-Short Equity Fund
A (perf) (acc) USD: LU1297691815* C (perf) (acc) USD: LU1297692201*
For other available share classes, please check the prospectus.
Generate alpha with controlled risk. Participate in US equity upside with the potential to
significantly limit losses in declining markets through a fundamental, high conviction fund with flexible beta.
Key points
STRATEGY PERFORMANCE SINCE INCEPTION (%)
ML 3 mos. U.S. T - Bills
JPM Opportunistic Long/Short Equity Strategy
S&P 500 Index Total Return
16
13.64
14
12
•Capture stock-level opportunities and
diversify your long-only exposure to the US
equity market.
•Net and gross market exposures are
actively managed to take advantage of
opportunity and manage volatility.
•Portfolio manager has 15 years’ experience
with this process and is backed by a team
of over 40 research analysts.
•Strategy has generated strong
uncorrelated risk-adjusted returns relative
to long-only portfolios, with lower volatility.
17.65
18
11.07
10.68
10
8
6
4
2
0
2.00
3.01
YTD 2015
2.00
4.00
2.75
1 year
Since inception*
Source: J.P. Morgan Asset Management, as at 30.11.2015. Past performance is not a guarantee of comparable future results. Total return assumes the reinvestment of income. Performance
results are gross of investment management fees. Actual account performance will vary depending on individual portfolio security selection and the applicable fee schedule.*Strategy inception
date: 30.06.2013. Past performance is not an indication of future performance.
Short exposure
Net
Net
70
60
50
40
0
30
20
Nov '15
Sep '15
Jul '15
May '15
Jan '15
Mar '15
Nov '14
Sep '14
Jul '14
May '14
Mar '14
Jan '14
10
-100
Nov '13
The fund’s net exposure is actively managed according to the market
outlook and opportunity set. Gross exposure is driven by conviction
and volatility management.
Long exposure
Long/Short
100
Sep '13
Bottom-up stock selection is the primary driver of the fund’s returns.
Drawing on the deep resources of J.P. Morgan Asset Management’s
analyst pool, the portfolio manager seeks to identify great long and
short investment ideas through deep fundamental research, and
employs a consistent valuation philosophy to find mispriced stocks.
Portfolio construction maximises exposure to the best ideas while
avoiding investments that carry excessive downside risk.
STRATEGY LONG-SHORT EXPOSURE (%)
Jul '13
High conviction stock selection
0
Source: Factset, J.P. Morgan Asset Management, as at 30.11.2015. Data is based on average
monthly exposure of the Opportunistic Long/Short Equity Strategy.
WHY J.P. MORGAN
ASSET MANAGEMENT?
•A commitment to putting clients’
interests first
•A legacy of innovative investing
•Comprehensive and disciplined portfolio
management
•The resources of a truly global
organisation
Diversify long-only
investments
The fund’s flexible market exposure means it
has the ability to limit losses in falling markets
while capturing some of the upside when
markets rise. This may make it an attractive
choice for investors concerned about volatility
or high valuations.
UPSIDE/DOWNSIDE CAPTURE (%)
JPM US Opportunistic Long-Short Equity
EAA OE US Large-Cap Blend Category
120
100
80
60
40
20
0
112
92
66
1
Up Capture Ratio
Down Capture Ratio
Source: Bloomberg, J.P. Morgan Asset Management, as at
31.12.2015. Strategy daily returns since inception 30.06.2013.
PAGE 2 of 2 | FUND STORY | 31 DECEMBER 2015
J.P. Morgan Asset
Management US
Equity Group:
•USD 225 billion
under management
(30.09.2015)
•113 investment
professionals
•Over USD 150 million
global annual research
budget
JPMorgan Funds – US Opportunistic Long-Short Equity Fund
Rick Singh
INVESTMENT OBJECTIVE
Aryeh Glatter
Lead portfolio manager
Backup portfolio manager
• 16 years of industry
experience
• 3 years at J.P. Morgan
• 28 years of industry
experience
• 5 years at J.P. Morgan
To achieve a total return through the active
management of long and short equity positions
with exposure primarily to US companies
and through the use of financial derivative
instruments.
Investment team personnel may
change at any time without notice.
PERFORMANCE
As the fund’s track record is shorter than one year, performance is currently not available.
* Performance fee is 15% with Excess Returns capped, when the fund return exceeds the benchmark return.
The performance fee is limited to 11.5% of the NAV applying the High Water Mark methodology.
RISK PROFILE
There is no guarantee that the active use of long and short
positions to vary net market exposure will succeed in
enhancing investment returns. The ability of the fund to
meet its investment objective is highly dependent on this
active management.
The value of equity securities may go down as well as up in
response to the performance of individual companies and
general market conditions.
The single market in which the fund invests may be subject to
particular political and economic risks, and as a result, the fund
may be more volatile than more broadly diversified funds.
The value of financial derivative instruments 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 financial derivative instrument and therefore,
investment in such instruments may result in losses in
excess of the amount invested by the fund.
The possible loss from taking a short position on a security
may be unlimited as there is no restriction on the price to
which a security may rise. The short selling of investments
may be subject to changes in regulations, which could
adversely impact returns to investors.
The currency hedging that may be used to minimise the
effect of currency fluctuations may not always be successful.
FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
This is a promotional document and as such the views contained herein are not to be taken as an advice or 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 are
considered to be reliable at the time of writing, 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.
It should be noted that 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 product(s) or underlying overseas investments. Both past performance and yield may
not be a reliable guide to future performance. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the
investment product(s), there can be no assurance that those objectives 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. You should note that if you contact J.P. Morgan Asset Management by telephone those lines may be recorded and monitored for legal, security and training purposes.
You should also take note that information and data from communications with you will be collected, stored and processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy
Policy which can be accessed through the following website http://www.jpmorgan.com/pages/privacy.
As the product may not be authorized 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 product(s).
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 Investor Information
Document (KIID) and any applicable local offering document. These documents together with the annual report, semi-annual report and the articles of incorporation for the Luxembourg domiciled
product(s) are available free of charge upon request from JPMorgan Asset Management (Europe) S.à.r.l., European Bank & Business Centre, 6 route de Trèves, L-2633 Senningerberg, Grand Duchy
of Luxembourg, your financial adviser or your J.P. Morgan Asset Management regional contact. In Switzerland, J.P. Morgan (Suisse) SA, 8, rue de la Confédération, PO Box 5507, 1211 Geneva 11,
Switzerland, has been authorized by the Swiss Financial Market Supervisory Authority FINMA as Swiss representative and as paying agent of the funds.
Issued in Continental Europe by JPMorgan Asset Management (Europe) Société à responsabilité limitée, European Bank & Business Centre, 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of
Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.
Issued in the UK by JPMorgan Asset Management Marketing Limited which is authorized and regulated by the Financial Conduct Authority. Registered in England No. 288553. Registered address:
25 Bank St, Canary Wharf, London E14 5JP, United Kingdom.
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