EFTA00726981.pdf

Jeffrey Epstein April 16, 2010 JPMORGAN PRIVATE BANK CASH MANAGEMENT Global Investment Specialist Jeff Matusow Investment products: Not FDIC insured • No bank guarantee • May lose value Please see important information at the end of this presentation. J.P. Morgan EFTA00726981  Option 1 - Day-to-Day Option 2- Reserve Cash Option 3 - Strategic Cash Liquidity Money Market Strategy: Managed Cash Strategy: Short Term Fixed Income Strategy: Managing Short Term Liquidity Needs Enhancing your Cash Yield Augmenting your Total Return -Wr r r r Objective: Objective: Objective: - Meet near term liquidity needs — Enhance income by investing in short — Complements cash portfolio seeking term high quality securities with an to enhance total returns - Mitigate principal volatility in a rising average duration slightly longer than rate environment — Short term fixed income investment money market funds intended for strategic cash with a — Minimize principal volatility to a time horizon of at least 18 months level appropriate for a 6-18 month time horizon Solution: Solution: Solution: - J.P. Morgan Capital Prime Money - J.P. Morgan Taxable Managed - J.P. Morgan Short Duration Bond Market Fund (CJPXX) Cash Strategy Fund (JSDUX) • Money Market Fund • Separately Managed Account • Short term fixed income mutual fund • Daily Liquidity • T+3 liquidity • T+1 liquidity • 2a7 regulated • Duration: 0.5 years / 0.9 years • Duration: 1.9 years • Weighted Average Maturity: • Average Life: 0.7 years / 1 year 51 days • Average Life: 2.3 years • Yield: 0.6% / 0.8% • Yield : 0.11% • Yield: 1.27% Neither JPIVIorgan nor any of its affiliates offer tax or legal advice. Such advice should be obtained from your professional tax and legal advisors. The views and strategies described herein may not be suitable for all investors. This information is J.P. Morgan not intended as an offer or solicitation for the purchase or sale of any financial instrument and is being provided merely to illustrate a particular investment strategy. Past performance is not a guarantee of comparable future results. EFTA00726982 Day-to-Day Liquidity: J.P. Morgan USD Prime Money Market Fund Profile (CPXX) As of April 15, 2010 Fund Features Maturity Distribution Current yield (7 day avg.)1 0.11% 50% 43.9% WAM 51 days 45% 41.3% Assets $146.3 bn 40% Credit Rating AAAm, Aaa/MR1+, AAAN1+ 35% (S&P, Moody's, Fitch) 30% Minimum investment (Capital) $50 mm 25% Settlement T+0 (5:00 PM EST cutoff time) 20% 13.3% 15% Annual Total Expenses 18 bps 10% CUSIP 4812A0367 5% 1.5% Ticker CJPXX 0% 'Source: JPMorgan Asset Management as of April 15, 2010 Less than 1 1- 3 Months 3- 6 Months 6- 9 Months Month Investment Parameters Portfolio Composition USGovernment Repos • Invested in low risk money market instruments Corporate Bonds Agencies 0.9% 0.3% 4.6% • Minimum credit quality of A-1/P-1 Trite Deposes 12.3% • Minimum 50% assets A-1+/P-1 • Diversified pool of investments • Maximum 5% in single issuer (ex repo) • Maximum security maturity 397 days Certificates of Deposit • Maximum portfolio maturity 60 days 54.6% Commercial Paper 27.3% Due to rounding, values may not total 100%. Source: JPMorgan Asset Management February 28, 2010. 'For floating rate securities the maturity is defined as the time to next reset. For amortizing securities the maturity is defined as the average life of the bond. Past performance Is not Indicative of future results. Investment returns will fluctuate so that the redemption amount may be J.P Morgan worth more or less than the original investment. Performance information is shown net of investment management fees. Performance includes the reinvestment of interests when applicable. Please refer to the prospectus for more detailed information. 2 EFTA00726983 Reserve Cash - Option 1: J.P. Morgan Taxable Managed Cash Strategy As of April 15, 2010 Portfolio Summary Portfolio Sector Breakdown Average Credit Quality AA US Tbills Agency 7% Sovereigns/ Average Duration 0.5 Years 2% FDIC-TLGP Supras 3% 2% Average Life 0.7 Years Commercial Paper & Average Market Yield 0.6% Certificates of Deposit 17% Typical Benchmarks • Federal Funds Effective • 3-Month U.S. Treasury Bills • iMoneyNet First Tier Instil Corporate • 6-Month U.S. Treasury Bills Bonds • Lipper Money Market Fund Inch • Ibbotson U.S. Treasury Bills Non Mortgage 48% • 30-Day Commercial Paper • Consumer Price Index (CPIU) ABS 21% • 3-Month Certificates of Deposit Portfolio Duration vs. Average Life Breakdown Portfolio Credit Breakdown AAA 33% A 0 - 1 years 37% 1 - 2 years • Duration • Average Life 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Average Credit Quality: AA Neither JPMorgan Chase & Co. nor any of its affiliates offer tax or legal advice. Such advice should be obtained from your professional tax and legal advisors. Note: Market value and market yield reflected may be subject to change due to interest rate fluctuations and changes in credit and market liquidity conditions. Market prices and values reflected may differ from liquidation values. Average Life represents the weighted average period of principal paybacks and may vary for securities with principal prepayment variability. Legal Final Maturity may be longer than average life. Duration represents the sensitivity of a fixed income portfolio market value to interest rate fluctuations. Private placement securities are internally rated by the J.P. Morgan Investment Management Credit Team. Portfolio characteristics will vary over time based on J.P. Morgan market conditions. This report snot intended as an offer or solicitation for the purchase or sale of any portfolio. The investment strategy referenced herein may not be suitable for all investors. 3 EFTA00726984 Reserve Cash - Option 2: J.P. Morgan Taxable Managed Cash Strategy As of April 15, 2010 Portfolio Summary Portfolio Sector Breakdown Agency Average Credit Quality AA Agency Discount Sovereigns/ 6% Notes Supras Average Duration 0.9 Years US Short Term 5% 3% Treasuries 5% Average Life 1.0 Years US Tbills 3% Average Market Yield 0.8% FDIC-TLGP 2% Typical Benchmarks Commercial Corporate Paper & Bonds • Federal Funds Effective • 3-Month U.S. Treasury Bills Certificates of 42% Deposit • iMoneyNet First Tier Instil • 6-Month U.S. Treasury Bills 12% • Lipper Money Market Fund Inch • Ibbotson U.S. Treasury Bills • 30-Day Commercial Paper • Consumer Price Index (CPIU) Non Mortgage • 3-Month Certificates of Deposit ABS 22% Portfolio Duration vs. Average Life Breakdown Portfolio Credit Breakdown A 0 - 1 years AAA 46% AA 1 - 2 years • Duration 13% • Average Life A1/P1 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% Average Credit Quality: AA Neither JPMorgan Chase & Co. nor any of its affiliates offer tax or legal advice. Such advice should be obtained from your professional tax and legal advisors. Note: Market value and market yield reflected may be subject to change due to interest rate fluctuations and changes in credit and market liquidity conditions. Market prices and values reflected may differ from liquidation values. Average Life represents the weighted average period of principal paybacks and may vary for securities with principal prepayment variability. Legal Final Maturity may be longer than average life. Duration represents the sensitivity of a fixed income portfolio market value to interest rate fluctuations. Private placement securities are internally rated by the J.P. Morgan Investment Management Credit Team. Portfolio characteristics will vary over time based on J.P. Morgan market conditions. This report 'knot intended as an offer or solicitation for the purchase or sale of any portfolio. The investment strategy referenced herein may not be suitable for all investors. 4 EFTA00726985 Strategic Cash - J.P. Morgan Short Duration Bond Fund (JSDUX) J.P. Morgan EFTA00726986  NOT FDIC INSURED I NO BANK GUARANTEE I MAY LOSE VALUE Ultra (JSDUX) JPMorgan Short Duration Bond Fund Data as of March 31, 2010 Fund overview Fund performance* S20 Objective As it was designed to do. the share price of the iPMorgan sis The Fund seeks currem income consistent with preservation of Short Duration Bond Fund has remained relatively stable Ito capital through investment in high- and medium-grade fixed since the share class's inception in February 2005. Share income securities. price is for Ultra. Past performance is no guarantee of future SS results. SO Strategy/Investment process • Under normal conditions. may invest at least 8016 in bonds. 2495 Ca 445 4 , 00 39p • Generally maintains an average weighted maturity of 3 years Total returns Average annual total returns or less. taking into account expected amortization and Performance at NAY (96) Latest QTR YTD 1 yr 3 yrs S yrs 10 yrs prepayment of principal on certain investments. Ultra' 0.91 0.91 4.87 4.95 4.65 4.70 • Seeks market sectors and individual securities that it believes Barclays Capital 1.3 Year U.S. Govemment/Cred4 will perform well over time. Bond Index 0.89 0.89 4.15 5.01 4.56 4.82 • May purchase taxable or tax-exempt municipal securities. Lipper Short U.S. Government Finds Index 0.65 026 3.51 4.02 3.85 4.04 Average maturity/quality SEC yields (%) Ultra Short Int. Long 30-Day SEC Yield 127 30-Day SEC Yield (Unsubsidized) 1.21 MEM High Calendar-year returns (%) 2005 2006 2007 2008 2009 Ultra at NAY 2.20 4.57 6.33 3.88 520 Barclays Capital 1•3 Year U.S. Govemment/Cred rt Medium Bond Index 1.77 4.25 648; 4.97 3.83 Lipper Shan U.S. Government Funds Index 1.68 4.02 5.56 3.46 3.59 *The performance quoted is past performance andis not a guarantee of future result:. Mutual funds are subject to certain market risks. Investment returns andprincipal value of an investment will fluctuate so that an investors shares. when redeemed. maybe worthmoreor less than original cost. Current performance may be higher or lower than the performance Portfolio managers/industry experience data shown. for performance current to the most recent month.endplease call1-80048041a Gregg Hrivnak. 24 years Morningstar ratings Overall 3-Year 5.Year 10-Year Richard Figuly. 16 years Ratirg/number of funds in category ****/365 ****/385 ****1317 Not yet rated Ultra share class: Short-Term Bond Category Portfolio characteristics Morningstar calculates a Morningstar Rating metric each month by subtracting the return on a 90-day US. Treasury Bill Humber of holdings 1394 from the fund's load-adjusted return for the same period, and then adjusting this excess return for rig. Fund assets (in billions) $836 Annual operating expenses Ultra Portfolio breakdown (%)" Expense cap expiation date 6/30/2010 Asset Backed Securities 10.1 Expense cap (%) 0.44 Collateralized Mortgage Obligations 11.4 Total annual Fund operating expenses (6)2 0.40 Commercial Mortgage-Backed Securities 1.4 :7IleInvestment Advisor. Administrator andDistributor have contractually agreed to wan.e feesartd/or reimburse expenses to the Corporate Bonds 13.0 extent that Total Annual Operating Expenses (excluding AcquiredFund Fees andftoeoses, dividend expenses relating to short sales. Mortgage Pass-Through Securities 8.1 interest, taxes and extraordinary expenses and expenses related to the Board of trustees' deferredcompensation olan)exceed the Short-Term Investments 4.3 expense cap of the average daily net assets through the expense cap expiration date. Withourthe Acquired fund fees andExpenses. U.S. Government Agency Securities 23.8 the tota(Annual Operating Expenses and fretExpenseswould have been loner. la addition. the Fund's service providers may U.S. Treasury Obligations 27.5 bolontati1y waive or reimburse certain of their fees. as theymay determine. from time to time. Other 0.4 Portfolio statistic Ultra Inception date 2)22/2005 Average life PIO" Investment minimum $5M Less than one year 17.4 Fund number 3944 Years 1.3 53.3 CUSIP 4812(0167 Years 3.5 25.0 years 5.7 4.0 Years 7-10 0.3 Duration 1.87 yeas Average Ife 2.33 yeas Quality (%).• US Government 65.4 AAA 20.7 AA 4.1 A 6.6 BBB 2.7 BB 0.3 B 0.1 "Due to rounding values may not total 100%. Please refer to the back of the page for important disclosure information Insight + Process = Results" including risks associated with investing in the Fund. J.P.Morgan Asset Management 6 EFTA00726987 NOT FDIC INSURED I NO BANK GUARANTEE I MAY LOSE VALUE Ultra (1SDUX) JPMorgan Short Duration Bond Fund Contact JPMorgan Distribution Services, Inc. at 1.800.480.4111fora fundprospectus. You can also visit us at wvacipmorganfurtds.com. Investors should carefully consider the investment objectives andrisks as well as charges and expenses of the mutual fundbefore investing. The prospectus contains this and otherInformation about the mutual fund. Read the prospectus carefully before Investing. RISKS ASSOCIATED WMIIIIIIEST1NG IN THE FUND: Because this Fund primarily invests M bonds. it is subject to interest rate rnks. Bond prices generally fall when interest rates rise. The Fund may invest in futures contracts and other derivatives. This may make the Fund more volatile. The portfolio characteristics (excluding sector and holdings) include derivative positions. RETURNS: The quoted performance of the Fund includes performance of a predecessor fund/share class prior to the Fund's commencement of operations. Please refer to the current prospectus for further information. IIORNINGSTAR DISCLOSURE: Morningstar cakulates a Morningstar Rating metric each month by subtracting the return on a 90.day US. Treasury Bill from the fund's load- adjusted return for the same period. and then adjusting this excess return for risk. The top 10%04 funds in each broad asset class receive 5 stars. the next 22.5% receive 4 stars. the next 35% receive 3 stars. the next 223% receive 2 stars and the bottom 10% receive 1star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-. five- and ten-year (if applicable) Momingstar Rating metrics. Past performance is no guarantee of future results. Different share classes may have different ratings. INDEXES DEFINED: The Barclays Capital 1-3 Year U.S. Government/Credit Bond index is an unmanaged index of investment grade government and corporate bonds with maturities of one to three years. The performance of the index does not reflect thededuction of expenses associatedwith a mutual fund. such as investment management fees. By contrast the performance of the Fund reflects the deduction of the mutual fund expenses. including sales charges if applicable. An irdividual cannot invest directly man index_ The Lipper Short U.S. Government Funds Index represents the total returns of the funds in the indicated category. as defined by Lipper. Inc. An individual cannot invest directly n an index. 02010. American Bankers Association. CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau. a division of The McGraw-Hill Companies. Inc. All rights reserved. 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. LP. Morgan Funds are distributed by WMorgan Distribution Services. Inc. which is an affiliate of II:Morgan Chase& Co. Affiliates of IP/Aorgan Chase & Co. receive fees for providing various services to the funds. Products and services are offered by 1P1lorgan Distribution Services. Inc.. member Ft NRA/SIPC. FS-SDB-U-0310 J.P.Morgan Asset Management 7 EFTA00726988  Annual taxable fixed income management fee schedules for Separately Managed investment management accounts' The following Fixed Income Fee Schedule is charged on the total market value of the account2: ACTIVE MANAGEMENT Short Term Cash Management_> $20mm 0.25% on the first $20 million 0.20% on the next $80 million 0.15% on amount over $100 million $25,000 minimum fee 1. Brokerage fees and costs for executing securities transactions, legal fees and other out-of-pocket expenses incurred on behalf of the account will also be passed through to the account at cost. There are no charges for trades in J.P. Morgan Funds. As described in the J.P. Morgan Funds Disclosure statement and the fund prospectuses, J.P. Morgan affiliates are paid fees by the J.P. Morgan Funds for providing investment advisory, distribution, administrative, shareholder servicing and other services to the J.P. Morgan Funds. As disclosed in the prospectuses, J.P. Morgan affiliates, at their own expense and out of their profits, may provide additional cash payments to financial intermediaries. Your advisor can provide copies of mutual fund prospectuses describing such fees, as well as further information about the fees earned by or additional cash payments received by J.P. Morgan affiliates. Prospectuses also are available by calling J.P. Morgan Distribution Services, Inc., at 800-480.4111, option 3 or www„Mmorganhinels r m. Investments in J.P. Morgan Funds generally are made in Select or Institutional shares classes which have no sales load or 12b-1 fees. Please contact your advisor for additional information. 2. The Fixed Income Fee Schedule is charged on the total market value of the account excluding JPMorgan Mutual Funds accrued income, sweeps, uninvested cash, and JPM corporate bonds. 3. Please contact your JPM representative for specific fees related to the asset allocation outlined in your Disaetionary Portfolio Mandate. Term sheets for individual investments are available upon request. J.P.Morgan a EFTA00726989 Important information IRS Circular 230Insclostawl.IP. Morgan Chase & Co. andits affiliates J.P. Morgan Securities Inc. may act as a market maker in markets relevant to do not provide tax advice. Accordingly, any discussion of U.S. tax structured products or option products and may engage in hedging or other matters contained herein (including any attachments) is not intended operations in such markets relevant to its structured products or options exposures. Structured products and options are not insured by the Federal Deposit Insurance or written to be used, and cannot be used, in connection with the Corporation (FDIC), the Federal Reserve Board, or any other governmental agency. promotion, marketing or recommendation by anyone unaffiliated with I.P. Morgan Chase & Co. of any of the matters addressedherein or for In discussion of options and other strategies, results and risks are based solely on the purpose of avoiding U.S. tax-relatedpenalties. hypothetical examples cited; actual results and risks will vary depending on specific circumstances. Investors are urged to consider carefully whether option or option- Each recipient of this presentation, and each agent thereof, may disclose to any related products in general, as well as the products or strategies discussed herein person, without limitation, the U.S. income and franchise tax treatment and tax are suitable to their needs. In actual transactions, the client's counterparty for OTC structure of the transactions described herein and may disclose all materials of derivatives applications is 1.P. Morgan Chase Bank, N.A., London branch. For a copy any kind (including opinions or other tax analyses) provided to each recipient of the "Characteristic and Risks of Standardized Options" booklet, please contact insofar as the materials relate to a U.S. income or franchise tax strategy your 1.P. Morgan Advisor. provided to such recipient by 1.P. Morgan Chase & Co. and its subsidiaries. Real estate, hedge funds, and other private investments may not be suitable for all Bank products and services are offered by 1.P. Morgan Chase Bank, N.A. and its individual investors, may present significant risks, and may be sold or redeemed at affiliates. Securities products and services are offered by 1.P. Morgan Securities more or less than the original amount invested. Private investments are offered Inc., member NYSE, FINRA and SIPC. only by offering memoranda, which more fully describe the possible risks. There This material is not intended as an offer or solicitation for the purchase or sale are no assurances that the stated investment objectives of any investment product of any financial instrument. J.P. Morgan Securities Inc. or its brokerage affiliates will be met. Hedge funds (or funds of hedge funds): often engage in leveraging may hold a position or act as market maker in the financial instruments of any and other speculative investment practices that may increase the risk of investment issuer discussed herein or act as an underwriter, placement agent, advisor or loss; can be highly illiquid; are not required to provide periodic pricing or valuation lender to such issuer. The views and strategies described herein may not be information to investors; may involve complex tax structures and delays in suitable for all investors. The discussion of loans or other extensions of credit in distributing important tax information; are not subject to the same regulatory this material is for illustrative purposes only. No commitment to lend by 1.P. requirements as mutual funds; and often charge high fees. Further, any number of Morgan should be construed or implied. This material is distributed with the conflicts of interest may exist in the context of the management and/or operation understanding that we are not rendering accounting, legal or tax advice. Estate of any hedge fund. planning requires legal assistance. You should consult with your independent J.P. Morgan Funds are distributed by J.P. Morgan Distribution Services, Inc., which is advisors concerning such matters. an affiliate of 1.P. Morgan Chase & Co. Affiliates of J.P. Morgan Chase & Co. receive We believe the information contained in this material to be reliable but do not fees for providing various services to the funds. Call J.P. Morgan Distribution warrant its accuracy or completeness. Opinions, estimates, and investment Services at 1.800480.4111 or visit www.jpmorganfunds.com for the prospectus. strategies and views expressed in this document constitute our judgment based Investors should carefully consider the investment objectives, risks, charges and on current market conditions and are subject to change without notice. This expenses of the mutual funds before investing. The prospectus contains this and material should not be regarded as research or a 1.P. Morgan research report. other information about the mutual fund and should be read carefully before Opinions expressed herein may differ from the opinions expressed by other investing. areas of 1.P. Morgan, including research. The investment strategies and views As applicable, portions of mutual fund performance information may be provided stated here may differ from those expressed for other purposes or in other by Upper, a Reuters company, subject to the following: O 2008 Reuters. All rights contexts by other J.P. Morgan market strategists. reserved. Any copying, republication or redistribution of Upper content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Upper. Upper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Past performance Is no guarantee of future results. Additional information is available upon request. O 20101.P. Morgan Chase & Co. 9 J.P.Morgan EFTA00726990