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J.P. Morgan Large Cap Growth Managed Account
As of June 30, 2021
Table of Contents
Capabilities
Strategy: Large Cap Growth
– Expertise
– Portfolio
– Results
Appendix
1
Capabilities
2
Equities Assets Under Management
3
As of June 30, 2021, J.P. Morgan Asset Management’s Equity teams manage USD 776 billion.
Source: J.P. Morgan Asset Management. Data includes internal Fund of Funds and joint ventures.
USD 776bn total assets under management
Equities
USD 439bn total assets under management
U.S. Equity
U.S. EquityUSD 439bn
57%
Emerging Markets & Asia Pacific Equity
USD 196bn25%
International Equity GroupUSD 141bn
18%
CoreUSD 100bn
23%
ValueUSD 143bn
32%
StructuredUSD 66bn
15%
GrowthUSD 130bn
30%
Expertise
4
Strategy overview
5
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
ExpertiseSeasoned portfolio management team focused on growth
Giri Devulapally has been the lead Portfolio Manager since August 2005 and has been on the team since July 2003
He is supported by 5 dedicated growth analysts with an average of 19 years of experience
PortfolioFundamental, bottom-up approach that focuses on stocks with strong growth potential
Seeks companies whose growth is being underappreciated by the market and possess good momentum
Diversified portfolio with a focus on risk management
ResultsPortfolio has delivered competitive performance over time
Performance is ahead of benchmark over the 3, 5, 10 and since inception periods*
Style pure, high growth approach
* Gross of fee performance as of 6/30/2021 versus the Russell 1000 Growth Index for the 1 year, 3 year, 5 year, 10 year and since inception periods. See page 15 for net of fee performance.
Inception date: July 31, 2004, when Giri Devulapally became co-portfolio manager. Giri Devulapally was named lead portfolio manager in August 2005. Performance prior to May 2008 is linked to the
institutional composite, which began on July 31, 2004.
Source: J.P. Morgan Asset Management. Past performance is not an indication of current and future performance.
An experienced team dedicated to growth investing
6
Lee SpelmanHead of U.S. Equity
Experience: 45/32
Eytan ShapiroCIO Growth & Small Cap
Lead PM Small Cap Growth
Experience: 38/36
Growth & Small Cap
Portfolio Managers
Giri Devulapally
Lead PM Large Cap
Growth
Experience: 29/18
Tim Parton
Lead PM Growth
Advantage & Mid
Cap Growth
Experience: 35/35
Investment
Specialist Team
Jonathan Sherman
Experience: 23/16
James Connors
Experience: 17/16
Doug Stewart
Experience: 10/10
Nick Cangialosi
Experience: 11/10
Felise Agranoff
Co-PM Growth Advantage,
Mid & Small Cap Growth
Financials / Business
Services, Industrials
Experience: 17/17
Research Team
Larry LeeCo-PM Large Cap GrowthFinancials / Business ServicesExperience: 28/15
Joe WilsonLead PM U.S. Tech & Co-PM Large Cap GrowthTechnologyExperience: 16/7
Holly FleissCo-PM Large Cap GrowthHealthcareExperience: 17/9
Robert MaloneyIndustrials / Energy Experience: 21/8
Dr. Matt CohenCo-PM Small Cap GrowthHealthcareExperience: 24/16
Michael SteinIndustrials / Energy Experience: 14/7
Daniel BloomgardenConsumerExperience: 24/6
Large Cap Growth Mid/Small Cap Growth
Sarah DodsonConsumerExperience: 12/3
Harris Galitz
Healthcare
Experience: 9/5
Zach Venditto
Financials /
Business
Services
Experience: 10/10
Eric GhernatiTechnologyExperience: 22/1
Greg Madsen
Consumer
Experience: 9/9
As of June 2021. Years of experience: industry/firm. 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.
Steve Lewis
Experience: 6/6
A dedicated portfolio team focused on Large Cap Growth
7
Also leverages the insights of the J.P. Morgan Equity organization, which includes over 40 research
analysts in the U.S. and over 200 globally
As of June 2021. Years of experience: industry/firm.
Investment Specialists
Jonathan Sherman
Experience: 23/16
James Connors
Experience: 17/16
Nick Cangialosi
Experience: 11/10
Douglas Stewart
Experience: 10/10
Giri Devulapally
Lead Portfolio Manager
Experience: 29/18
Research Team
Larry Lee
Financials/Business
Services
Co-Portfolio Manager
Experience: 28/15
Holly Fleiss
Healthcare
Co-Portfolio Manager
Experience: 17/9
Joe Wilson
Technology
Co-Portfolio Manager
Experience: 16/7
Robert Maloney
Industrials & Energy
Experience: 21/8
Sarah Dodson
Consumer
Experience: 12/3
Portfolio
8
Investment Philosophy
The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
“We believe that long-term outperformance can be achieved by investing
in companies that have the ability to deliver significantly higher growth
than market expectations over the next 3-5 years.”
Risks that we seek to manage: Characteristics of great growth stocks:
Don’t miss the truly outstanding stocks; it is difficult to
outperform if you don’t own the really big winners
Avoid, or mitigate the impact of the big underperforming
stocks
Take greater active risk when finding a diversified group of
stocks that meet our investment criteria, however take less
active risk when we are having a more challenging time
finding those stocks
A large addressable market undergoing meaningful change
Sustainable competitive advantage and strong execution
Good price momentum
Giri Devulapally
Portfolio Manager
9
Our process is focused on identifying the stocks that meet our investment criteria
and constructing a diversified portfolio
For illustrative purposes only.
The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
See page 33 for a glossary of investment terms.
Determine if a prolonged growth
opportunity exists
Assess competitive dynamics
Evaluate attractiveness of business
model
Track record of management’s ability
to execute
Potential for margin expansion
Balance sheet strength
Bottom-up, fundamental
Giri Devulapally utilizes the
fundamental analysis coupled with his
insights to create a diversified portfolio
of 60-90 stocks
Position sizes determined by
conviction level
– Quality of business
– Risk/reward
– Diversification impact on portfolio
Portfolio guidelines
– Individual positions generally + / - 5%
relative to the benchmark
Run proprietary quantitative screens
on Russell 1000 Growth Index +
(Approx. 800 names)
– Earnings revisions
– Price momentum
– Valuation
Narrow investable universe to 150-200
companies
Company meetings
Industry conferences
Idea
Generation
Fundamental
Analysis
Portfolio
Construction
10
PayPal
0903c02a82adc99c
11
Sources: FactSet, J.P. Morgan Asset Management. As of 7/11/21. This example is included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not
be assumed that investments within the portfolio have or will perform in a similar manner to the investment above. Please note that this investment is not necessarily representative of future investments that
the manager will make. There can be no guarantee of future success. A full list of firm recommendations for the past year is available upon request.
Past performance is not a guarantee of future results.
Large addressable market
– 80%+ of payments around the world are still settled in
cash/check. As methods of payment go increasingly electronic,
digital payment platforms like PayPal will be primary
beneficiaries.
Competitive advantage
– Leadership in payments is based on scale, and PayPal’s scale
is significant.
– PayPal’s platform processes ~16bn transactions totaling ~$1
trillion in total payment volume (TPV), for 333 million accounts
in over 200 markets.
Strong execution
– PayPal has a market leadership position in two of the strongest
secular growth segments in payments, ecommerce and mobile.
This makes PayPal one of the fastest growing companies in
the industry, enabling it to drive sustainable high-teens revenue
growth and 20%+ earnings growth.
PYPL Total Payment Volume (TPV) in $bn
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
E
20
22
E
20
23
E
Our sell discipline is the opposite of our buy discipline
We reduce or eliminate a position when:
We are no longer comfortable with our fundamental thesis
– The addressable market is not as large as anticipated
– The competitive advantage is not as strong as expected
– Lower confidence in the company’s ability to execute
Price momentum weakens
– We will reduce or eliminate a stock even if we still believe in our fundamental thesis to mitigate the impact of an underperforming
stock
Market expectations or valuations exceed the company’s potential to deliver
The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
12
Long term alpha generation through a style pure approach
13
Attractive risk-adjusted return profile
Since Inception
Risk & Return Ranks
Information Ratio: 6th
Sharpe Ratio: 14th
Up-Market Capture: 17th
Down-Market Capture: 63rd
Morningstar Star Rating
J.P. Morgan Large Cap Growth is a differentiated portfolio…
With an attractive risk-adjusted return profile…
Less exposure to top index constituents
32%
47%
J.P. Morgan Large Cap Growth Russell 1000 Growth Index
Higher growth characteristics
23%
22%
21%
22%
EPS Growth Sales Growth
J.P. Morgan Large Cap Growth Russell 1000 Growth Index% weight in top ten index holdings
1 1
Long-term outperformance
(5th)
28.9%
(4th)
28.8%(9th)
19.3%
(9th)
14.5%
25.1%23.7%
17.9% 12.8%
Trailing 3 Year Trailing 5 Year Trailing 10 Year SI
LCG R1KG(LCG Cat % Rank)
1 12-month forward as of 6/30/21.Source: J.P. Morgan Asset Management, Morningstar, Factset, Frank Russell Company. The ranking information is provided by Morningstar. Morningstar Ratings ™ and Morningstar category: ©
Morningstar. All Rights Reserved. Data shown is as of 6/30/2021. Performance shown is gross of fees. Past performance is not a guarantee of future results.
Morningstar: Three-year rating: 5 stars, 508 strategies rated. Five-year rating: 5 stars, 466 strategies rated. Ten year rating: 5 stars, 387 strategies rated. For overall rating, 602 strategies were rated. Ratings
reflect risk-adjusted performance. Performance prior to May 2008 is linked to the J.P. Morgan Large Cap Growth institutional composite.
The Overall Morningstar Rating™ is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.
Performance and Morningstar ranks as of 6/30/2021 for the trailing 3/5/10 & since inception period (7/31/2004) versus the Morningstar Large Growth Separate Account/CIT
Category. See page 15 for net of fee performance.
See page 33 for a glossary of investment terms.
Results
14
Performance
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
Time-weighted trailing rates of return (%)
Calendar year performance (%)
Past performance is not a guarantee of future results.1 Inception date: July 31, 2004, when Giri Devulapally became co-portfolio manager. Giri Devulapally was named lead portfolio manager in August 2005. Performance prior to May 2008 is linked to
the institutional composite, which began on July 31, 2004. 2 Please note, actual fees associated with this strategy may be lower.
Source: J.P. Morgan Asset Management, Russell.
Total return assumes the reinvestment of income. Performance results are gross of investment management fees. The deduction of an advisory fee reduces an investor’s return. Actual account
performance will vary depending on individual portfolio security selection and the applicable fee schedule. Fees are described in Part II of the Advisor’s ADV which is available upon request . Please
see back page for additional disclosure. The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth
rates. It is a market-cap-weighted index of widely held stocks that are used as a representation of the large cap market. The returns are total returns and include the reinvestment of dividends. An
individual cannot invest directly in an index. The index is unmanaged.
See page 33 for a glossary of investment terms.
2Q21Year to
Date
One
Year
Three
Years
Five
Years
Ten
Years
Since
Inception1
JPM Large Cap Growth MA (gross) 8.76 9.18 42.24 28.88 28.76 19.26 14.53
JPM Large Cap Growth MA (Net of max. allowable fees – 300bps)2 7.97 7.58 38.15 25.13 25.03 15.78 11.18
Russell 1000 Growth Index 11.93 12.99 42.50 25.14 23.66 17.87 12.80
Excess Returns vs. Index (gross) -3.17 -3.81 -0.26 3.74 5.10 1.39 1.73
Market value
J.P. Morgan Large Cap Growth Strategy $50,326m
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
JPM Large Cap Growth MA (gross) 7.21 24.91 -39.30 35.31 23.37 3.75 13.70 32.84 11.27 8.33 -0.95 37.75 1.03 39.97 57.15
JPM Large Cap Growth MA (Net of max. allowable fees – 300bps)2 4.05 21.28 -41.18 31.40 19.77 0.69 10.37 29.00 8.00 5.14 -3.89 33.78 -1.96 35.94 52.44
Russell 1000 Growth Index 9.07 11.81 -38.44 37.21 16.71 2.64 15.26 33.48 13.05 5.67 7.08 30.21 -1.51 36.39 38.49
Excess Returns vs. Index -1.86 13.10 -0.86 -1.90 6.66 1.11 -1.56 -0.64 -1.78 2.66 -8.03 7.54 2.54 3.58 18.66
15
Supplemental to Annual Performance Report
Strategy Overview
Past performance is not a guarantee of future results. Total returns include the reinvestment of any income. Performance is stated gross of fees. Net of fee performance can be found on page 15.
Performance results are gross of investment management fees. The deduction of an advisory fee reduces an investor’s return. Actual account performance will vary depending on individual portfolio security
selection and the applicable fee schedule. Fees are described in Part II of the Advisor’s ADV which is available upon request. (Please see back page for additional disclosure)
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth rates. It is a market-cap-weighted index of widely
held stocks that are used as a representation of the large cap market. The returns are total returns and include the reinvestment of dividends. An individual cannot invest directly in an index. The index is
unmanaged. Source: J.P. Morgan Asset Management
16
As of June 30, 2021
Market
Review
Portfolio
Review
Positioning
U.S. Equity markets continued to move higher in 2Q with the S&P 500 Index returning 8.55%, bringing the year-to-date to
15.25% for the second best start to a calendar year in over 20 years.
Stylistically, growth outperformed value within the large cap universe in 2Q as the Russell 1000 Growth Index returned
11.93% vs. 5.21% for the Russell 1000 Value Index. However, value continues to lead on a year-to-date basis.
The J.P. Morgan Large Cap Growth Managed Account portfolio (gross of fees) underperformed the Russell 1000 Growth
Index in 2Q21, returning 8.76% vs. 11.93% respectively. Long term performance remains ahead of the benchmark across the
trailing 3 year, 5 year, 10 year and since inception periods.
Consistent with our process we have reduced exposure to long term winners and reallocated proceeds into companies with
more modest expectations, resulting in a more moderate growth bias. While we continue to have conviction in select high
growth names, a greater source of new ideas have been companies that happen to have an element of cyclicality in their
fundamental profile. This evolution in the positioning of the portfolio posed a headwind which was most acute in the month of
June, with the strategy underperforming by -209 bps as higher growth segments of the market outperformed.
For the quarter, the technology sector was the largest detractor due to a combination of stock selection and an underweight
allocation. Stock selection in consumer discretionary also detracted. The financials and health care sectors were the top
contributors.
We continue to be agnostic as to where great growth opportunities are sourced from and remain focused on companies
where we have a differentiated perspective on the magnitude and/or duration of the growth profile.
Financials and industrials remain the top overweights, as we continue to have conviction in the growth cyclicals that we
have added to in recent quarters.
Technology remains the largest underweight, although the magnitude of the underweight has narrowed as we continue
to add to select positions exposed to the reacceleration in digital advertising spending.
Select trims and eliminations brought the consumer discretionary sector from an overweight to the second largest
underweight in the quarter.
Market Environment
Source: J.P. Morgan Asset Management; Morningstar, Frank Russell Company, Standard & Poor’s. For all time periods, total return is based on Russell-style indexes with the
exception of the large blend category, which is based on the S&P 500 Index. Past performance is not a guarantee of future results.
See page 33 for a glossary of investment terms.
17
Year To Date Index Returns
Large
Mid
Small
Value Core Growth
January 1, 2021 – June 30, 2021 shaded from best-to-worst performing index
Second Quarter 2021 Index Returns
Large
Mid
Small
Value Core Growth
April 1, 2021 – June 30, 2021 shaded from best-to-worst performing index
44%
25% 23%19%
16% 15% 15%11%
9% 8% 6%4%
En
erg
y
Fin
an
cia
ls
Rea
l E
sta
te
Te
ch
no
logy
Ba
sic
Ma
teria
ls
S&
P 5
00
Inde
x
Indu
str
ials
Hea
lth
Ca
re
Te
leco
mm
uni
cation
s
Con
su
me
rD
iscre
tio
na
ry
Con
su
me
rS
taple
s
Utilit
ies
Year To Date S&P 500 Index Sector Returns
Second Quarter 2021 S&P 500 Index Sector Returns
14% 13%
11%
9% 8% 8%6%
6% 5%4%
3%
0%
Te
ch
no
logy
Rea
l E
sta
te
En
erg
y
S&
P 5
00
Inde
x
Hea
lth
Ca
re
Fin
an
cia
ls
Indu
str
ials
Con
su
me
rD
iscre
tio
na
ry
Ba
sic
Ma
teria
ls
Te
leco
mm
un
ica
tio
ns
Con
su
me
rS
taple
s
Utilit
ies
5.2% 8.5% 11.9%
5.7% 7.5% 11.1%
4.6% 4.3% 3.9%
17.0% 15.3% 13.0%
19.5% 16.2% 10.4%
26.7% 17.5% 9.0%
Performance attribution: 2Q 2021
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
* Was underweight during the period. 1 Was unowned during the period.
Source: J.P. Morgan Asset Management, Wilshire Atlas (excludes cash). The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The strategy is an
actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a
guarantee of future results.
See page 33 for a glossary of investment terms.
18
SectorAvg. weight
difference
Portfolio
return
Russell 1000
Growth return
Stock
selection
Sector
selection
Total
impact
Financials 6.28 16.18 11.83 0.36 -0.01 0.35
Health Care -2.93 14.07 10.95 0.27 0.02 0.29
Basic Materials 1.29 12.93 -0.58 0.25 -0.15 0.10
Utilities -0.06 0.00 8.89 0.00 0.00 0.00
Telecommunications -0.70 40.97 21.38 0.03 -0.06 -0.04
Energy -0.04 13.24 9.22 -0.02 -0.02 -0.04
Consumer Staples 0.73 -3.93 1.55 -0.26 -0.08 -0.33
Real Estate -0.54 -5.72 14.68 -0.35 0.00 -0.36
Industrials 2.73 5.57 9.44 -0.61 -0.06 -0.68
Technology -6.63 13.76 15.76 -0.76 -0.23 -0.99
Consumer Discretionary -0.15 1.95 7.04 -1.08 0.01 -1.07
Total 0.00 9.16 11.93 -2.18 -0.59 -2.77
Top contributors Impact Top detractors Impact
Snap 0.41 Deere -0.63
Blackstone Group 0.33 Discovery -0.39
PayPal Holdings 0.15 NVIDIA * -0.33
Morgan Stanley 0.12 Zillow Group -0.30
Amgen 1 0.10 Boston Beer Company -0.25
Sector attribution (%)
Stock attribution (%)
Performance attribution: Year to date
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
* Was underweight during the period.
Source: J.P. Morgan Asset Management, Wilshire Atlas (excludes cash). The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The strategy is an
actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a
guarantee of future results.
See page 33 for a glossary of investment terms.
19
SectorAvg. weight
difference
Portfolio
return
Russell 1000
Growth return
Stock
selection
Sector
selection
Total
impact
Financials 5.42 22.10 15.00 0.43 0.07 0.49
Industrials 1.70 14.07 12.04 0.09 -0.07 0.03
Consumer Staples 0.37 4.19 1.88 0.04 -0.03 0.01
Utilities -0.05 0.00 16.61 0.00 0.00 0.00
Basic Materials 0.95 17.24 5.15 0.04 -0.11 -0.07
Telecommunications -0.70 -1.73 13.60 -0.06 -0.01 -0.08
Energy 0.20 4.65 8.74 -0.07 -0.03 -0.11
Health Care -2.60 9.95 12.24 -0.35 0.01 -0.33
Real Estate -0.04 -17.36 20.41 -0.70 -0.01 -0.70
Consumer Discretionary 1.74 0.76 5.44 -0.85 -0.11 -0.96
Technology -6.99 14.18 17.48 -1.25 -0.32 -1.56
Total 0.00 9.70 12.99 -2.68 -0.61 -3.29
Top contributors Impact Top detractors Impact
Blackstone Group 0.50 Alphabet * -0.62
Snap 0.50 Zillow Group -0.48
ASML 0.40 Microsoft * -0.41
Apple * 0.38 Seagen -0.39
Charles Schwab 0.30 Discovery -0.38
Sector attribution (%)
Stock attribution (%)
Major transactions: 2Q 2021
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
* Was initiated or eliminated during the period.
Data shown above is for a representative account for the strategy.
Source: J.P. Morgan Asset Management. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. The strategy is an actively managed portfolio, holdings,
sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a guarantee of future results.
See page 33 for a glossary of investment terms.
See pages 10-12 for a description of our buy and sell discipline.
20
Top Buys
Alphabet
Oracle *
Top Sells
Discovery *
Tesla
Cognizant Technology Solutions
Sector positioning
Benchmark Russell 1000 Growth IndexJ.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell.
The benchmark is the Russell 1000 Growth Index. For illustrative purposes only.
Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). The strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage, as
applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a guarantee of future results.
See page 33 for a glossary of investment terms.
21
Absolute and relative sector positions
6.2
1.91.1 1.0 0.9
-0.1 -0.4 -0.7 -0.8
-3.7
-5.4
Financials Industrials ConsumerStaples
Health Care BasicMaterials
Utilities Energy Telecomm Real Estate ConsumerDiscretionary
Technology
Absolute
weight (%) 8.3 15.6 3.9 9.8 1.5 0.0 0.1 0.2 1.2 18.2 41.2
Relative
weight (%)
Portfolio weightings
Benchmark Russell 1000 Growth IndexJ.P. Morgan Large Cap Growth Managed Account as of June 30, 2021
The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell.
The benchmark is the Russell 1000 Growth Index. For illustrative purposes only.
Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). The strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage, as
applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a guarantee of future results.
22
Top 10 holdingsPortfolio
weight (%)
Alphabet 6.33
Apple 6.20
Microsoft 5.05
Facebook 4.72
PayPal Holdings 3.54
Amazon 3.46
Deere 3.34
Snap 2.61
Charles Schwab 2.06
Morgan Stanley 2.00
Total 39.31
Top 10 overweightsPortfolio
weight (%)
Benchmark
weight (%)
Active
position (%)
Deere 3.34 0.47 2.87
Snap 2.61 0.00 2.61
Charles Schwab 2.06 0.00 2.06
Morgan Stanley 2.00 0.00 2.00
PayPal Holdings 3.54 1.62 1.92
Blackstone Group 1.96 0.31 1.65
McKesson 1.58 0.02 1.56
Norfolk Southern 1.55 0.00 1.55
ASML 1.48 0.00 1.48
FedEx 1.59 0.15 1.44
Total 21.71 2.57 19.14
Portfolio characteristics
J.P. Morgan Large Cap Growth Managed Account as of June 30, 2021 Benchmark Russell 1000 Growth Index
1. Excludes negatives.
2. Three-year trailing, calculated on a monthly basis.
3. Average 12-month turnover over past three years.
The benchmark is the Russell 1000 Growth Index. For illustrative purposes only. Data shown above is for a representative account for the strategy.
Source: J.P. Morgan Asset Management, Frank Russell Company, BARRA, Wilshire Atlas (excludes cash). The strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage,
as applicable are subject to change at the discretion of the Investment Manager without notice. Past performance is not a guarantee of future results.
See page 33 for a glossary of investment terms.
23
Characteristics Portfolio Benchmark
Weighted Avg. Market Cap $548.4bn $796.0bn
Price / Earnings, 12-mth fwd1 24.4x 27.4x
EPS Growth, 12-mth fwd 22.8% 20.9%
Beta2 1.07 1.00
Tracking Error2 5.42 N/A
Turnover3 44% N/A
Active Share 58% N/A
Number of holdings 78 498
BARRA tilts
Market capitalization
76.1
19.2
4.7 0.0 0.0
80.3
12.54.9 2.1 0.2
0%
20%
40%
60%
80%
100%
> USD 50 Bn USD 20-50 Bn USD 10-20 Bn USD 5-10 Bn < USD 5 Bn
Portfolio Benchmark
-0.18
-0.17
-0.16
-0.14
0.00
0.04
0.07
0.07
0.12
0.12
0.20
0.26
-0.2 -0.1 0 0.1 0.2 0.3
Earnings Quality
Profit
Size
Dividend Yield
Leverage
Earnings Yield
Growth
Residual Volatility
Value
Liquidity
Beta
Momentum
Appendix
24
Environments
The opinions and views expressed here are those held by the author, which are subject to change and are not to be taken as or construed as investment advice.
J.P. Morgan Large Cap Growth Managed Account
Company-specific fundamentals are the main driver of returns
Stocks with higher growth and momentum characteristics are
being rewarded
Example: 2017
Stocks with positive momentum characteristics performed well
Higher growth stocks were generally rewarded, especially in the
technology sector and other tech-enabled segments of the market
Environments in which the portfolio tends to
perform well
Environments in which the portfolio tends to
struggle
Stocks with positive price momentum are not rewarded
Higher growth stocks underperform
Example: 2016
Price momentum was not rewarded as a shift in market
leadership began in the first quarter
Growth characteristics were out of favor while stocks with either
low valuations or very defensive characteristics outperformed
significantly
25
Positioning themes
Source: J.P. Morgan Asset Management. These examples are included solely to illustrate the investment process and strategies which have been utilized by the manager. It should not be assumed that
investments within the portfolio have or will perform in a similar manner to the investment above. Please note that these investments are not necessarily representative of future
investments that the manager will make. There can be no guarantee of future success. A full list of firm recommendations for the past year is available upon request. The
Strategy is an actively managed portfolio, holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager
without notice. Past performance is not a guarantee of future results.
26
Technology-Enabled
Companies that we believe are well positioned to benefit from technological innovation
Industrials capitalizing on company-specific drivers
Deere, Freeport-McMoran, Rockwell Automation
Consumer facing platforms
Zillow, Carvana, Wayfair
Financials
Increased conviction in traditional financials while owning secular winners in payments
Steady, high quality franchises that have robust tailwinds
Charles Schwab, Morgan Stanley, Blackstone, SVB Financial
Payments
PayPal, Square
Where we are less exposed
Stocks which have outperformed substantially over the course of
many years where fundamentals seem to be well-understood.
Digital Advertising
Merchants spending more on digital advertising to build mindshare in the online world
Emerging and innovative
Snap, Twitter, Pinterest
Overweight positions in Alphabet and Facebook
History suggests we are in the early innings of a new secular bull market
Source: (Top) Robert Shiller, Factset. Data shown in log scale to best illustrate long-term index patterns (Bottom) Ibbotson, Empirical Research Analysis, J.P. Morgan Asset
Management, Bloomberg L.P as of March 31, 2021. Past performance is not a guarantee of future results.
See page 33 for a glossary of investment terms.
S&P 500 Annualized Trailing 20 Year Total Returns 1927 – March 2021
0
5
10
15
20
1927
1931
1936
1941
1946
1951
1956
1961
1966
1971
1976
1981
1986
1990
1995
2000
2005
2010
2015
2020
Most recent 20-year period: 8.47%
S&P 500 Index, Log Scale, from 1927 – March 2021
1927
1931
1936
1941
1946
1951
1956
1961
1966
1971
1976
1981
1986
1990
1995
2000
2005
2010
2015
2020
Secular Bear Market
1929 – 1949
Secular Bull Market
1949 - 1966
Secular Bear Market
1966 – 1982Secular Bull Market
1982 - 2000
Secular Bear Market
2000 – Feb 2016
Secular Bull Market
Feb 2016 – 2033?
S&P 500 @ ~10,000?
We believe that a new secular bull market for equities began in February 2016. Our analysis finds that annualized total returns should
average in the double digits until the early to mid 2030s.
27
Relative valuations, demographics and flows are supportive of equities
Source: (Bottom) Strategic Insight, Empirical Research, Data as of March 2021. (Top Left) Federal Reserve Board, Corporate Reports, Empirical Research Partners Analysis. 1Large-capitalization stocks
excludes financial and utilities; capitalization-weighted data smoothed on a trailing six-month basis. Data as of March 2021 (Top Right) Brookings Papers on Economic Activity,
1:2004 “Demography and the Long Run Predictability of the Stock Market” by Geanakoplos, Magill & Quinzii, United States Census Bureau, J.P. Morgan Asset Management.
The performance quoted is past performance and is not a guarantee of future results.
See page 33 for a glossary of investment terms
28
Valuations: Equities have rarely looked this attractive vs. bonds and cash
Equity FCF Yield Spread vs. 3mo T-Bill, 10yr Treasury and Baa Bond Yields1
-15
-10
-5
0
5
10
195
0
195
3
195
6
195
8
196
1
196
4
196
6
196
9
197
2
197
4
197
7
198
0
198
2
198
5
198
8
199
0
199
3
199
6
199
8
200
1
200
4
200
6
200
9
201
2
201
4
201
7
202
0
FCF Yield - 3mo T-Bill FCF Yield - 10yr Tsy FCF Yield - Baa Bond%
Demographics: Supportive of demand for equities and higher productivity
MY (Middle-Young) Ratio of U.S. Population Aged 35-49 vs. 20-34 *
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
194
5
195
5
196
5
197
5
198
5
199
5
200
5
201
5
202
5
203
5
204
5
205
5
U.S. Census Bureau
Projection from 2021-2060
Flows: Bond flows have dominated since the mid-2000s
Annual Spread of US Equity and Fixed Income Net Flows (in $BN)
-$750
-$500
-$250
$0
$250
$500
$750
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
YT
D 2
1
Equity > Bond
Flows
‘92-’05 $1.8 trillion into US equity and $551 billion into
fixed income‘06-YTD20 $3.6 trillion into US fixed income and $49
billion into equity
Bond > Equity
Flows
U.S. Equity has a strong commitment to fundamental research
As of June 2021. Years of experience: industry/firm. 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.
29
David Small Director of U.S. Research
Exp.: 21/16
Steven WhartonBanks &Capital MarketsExp.: 26/15
Larry Lee Financials / Business ServicesExp.: 28/15
Dan Percella Generalist/Banking & FinanceExp.: 19/13
Financials
David ChanPaymentsExp.: 14/3
AJ GrewalFinancial ServicesExp.: 22/3
Generalist
Graham SpenceGeneralistExp.: 19/8
Kris EricksonMediaExp.: 20/8
Ryan Vineyard Telecom & CableExp.: 16/9
Telecom & Media
Robert BowmanSemis & Tech. HardwareExp.: 28/28
Nitin BhambhaniSoftware & ServicesExp.: 28/25
Technology
Jon BrachleGeneralist/ TechnologyExp.: 14/14
Joe WilsonTechnologyExp.: 16/7
Ryan JonesTechnologyExp.: 15/5
Eric GhernatiTechnologyExp.: 22/1
REITs
Jason KoREITsExp.: 19/19
Nick TurchettaREITsExp.: 11/1
Brent GdulaInsuranceExp.: 13/13
Danielle HinesAssociate Director of U.S. Research
Exp.: 12/12
Zach VendittoFinancials/Business SvcsExp.: 10/10
Consumer
Lisa SadiogluConsumer CyclicalsExp.: 21/21
Greg FowlkesRetailExp.: 22/16
Daniel BloomgardenConsumerExp.: 24/6
Shilpee RainaGeneralist Exp.:17/17
Sarah DodsonConsumerExp.: 12/3
Dennis MorganConsumerExp.: 27/4
Greg MadsenConsumerExp.:9/9
Dr. Matt Cohen HealthcareExp.: 24/16
Laurence McGrathHealth Svcs / MedtechExp.: 24/11
Holly FleissHealthcareExp.: 17/9
Chris Carter Generalist / Health CareExp.: 15/6
Healthcare
Brittany HendersonMedtechExp.: 11/3
Bartjan van HultenPharma/BiotechExp.: 25/3
Tony LeeHealthcareExp.: 9/9
Felise AgranoffEnergy /Industrials & MaterialsExp.: 17/17
Lerone VincentBasic MaterialsExp.: 23/23
David MaccarroneEnergy InfrastructureExp.: 26/11
Leslie Rich UtilitiesExp.: 28/11
Industrials
Robert MaloneyIndustrials Exp.: 21/8
Chris CerasoAutos & TransportExp.: 21/8
Joanna ShatneyIndustrial CyclicalsExp.: 25/7
Michael SteinIndustrials Exp.: 14/17
Jeremy MillerIndustrialsExp.: 21/5
Andrew BrillIndustrialsExp.: 18/5
Larry UnreinHealthcareExp.: 11/11
Harris GalitzHealthcareExp.: 9/5
Aga ZmigrodzkaEnergyExp.: 11/<1
Li BoyntonPhama/BiotechExp.: 7/4
Large Cap Growth biographies
30
Giri DevulapallyGiri Devulapally, managing director, is a portfolio manager within the U.S. Equity Group. An employee since 2003, Giri is responsible for managing the
J.P. Morgan Large Cap Growth Strategy. Prior to joining the firm, Giri worked for T. Rowe Price for six years, where he was an analyst specializing in
technology and telecommunications. Giri received a B.S. in Electrical Engineering from the University of Illinois and an M.B.A. with a concentration in
Finance from the University of Chicago. He is a member of the CFA Institute and a CFA charterholder.
Larry H. LeeLarry H. Lee, managing director, is a research analyst and portfolio manager within the U.S. Equity Group. An employee since 2006, Larry covers the
financials and business services sector and is a co-portfolio manager of the J.P. Morgan Large Cap Growth Strategy. Prior to joining the firm, Larry spent
eleven years as a sell side analyst at several firms, including CIBC World Markets, Merrill Lynch and Banc of America Securities, primarily focused on the
business services sector. He holds a B.A. in Economics from Stanford University and an M.B.A. from University of Chicago.
Holly FleissHolly Fleiss, executive director, is a research analyst and portfolio manager within the U.S. Equity Group. An employee since 2012, Holly covers the
health care sector and is a co-portfolio manager of the J.P. Morgan Large Cap Growth Strategy. Prior to joining the firm, Holly spent five years as a buy
side analyst at HealthCor Management, focusing on the biotechnology, specialty and pharmaceutical sectors. Prior to that, Holly spent three years at
ThinkPanmure and UBS, where she focused on biotechnology, specialty and pharmaceutical stocks as part of a specialized life sciences team advising
institutional and ultra-high net worth brokerage clients. Holly holds a B.A. and M.A. in Psychological and Brain Sciences from The Johns Hopkins
University.
Joseph WilsonJoseph Wilson, managing director, is a research analyst and portfolio manager within the U.S. Equity Group. An employee since 2014, Joe covers the
technology sector and is a co-portfolio manager of the J.P. Morgan Large Cap Growth Strategy. Joe is also the lead portfolio manager on the J.P. Morgan
U.S. Technology Strategy. Prior to joining the firm, Joe spent six years as a buy side analyst for UBS Global Asset Management, where he covered the
technology sector for the Large Cap Growth team from 2010 to 2014, and the Mid Cap Growth team in 2009. Prior to that, Joe worked at RBC Capital
Markets as a sell side research associate covering enterprise, infrastructure and security software. Joe holds a B.A. in Finance from the University of St.
Thomas and an M.B.A. from the University of St. Thomas Opus College of Business.
Robert B. MaloneyRobert B. Maloney, executive director, is a research analyst within the U.S. Equity Group. An employee since 2013, Robert is responsible for the
industrials and energy sectors for the J.P. Morgan Large Cap Growth Strategy. Prior to joining the firm, Robert spent ten years as a sell side analyst at
Morgan Stanley and Credit Suisse. At Morgan Stanley Robert served as the lead associate on their Large Cap Industrials team and later as the senior
analyst covering Small/Mid Cap Industrials. Robert also worked as the industrials trading desk analyst at Morgan Stanley and Credit Suisse covering a
broad-range of industrial verticals. Prior to that Robert worked as a consultant to the US Department of Defense and the United Nations. Robert holds a
B.A. in International Politics from the Georgetown University School of Foreign Service. He is a member of the CFA Institute and a CFA charterholder.
Large Cap Growth biographies
31
Sarah DodsonSarah Dodson, executive director, is a research analyst within the U.S. Equity Group. An employee since 2018, Sarah is responsible for the consumer
sector for the J.P. Morgan Large Cap Growth Strategy. Prior to joining the firm, Sarah spent seven years as a buy side analyst, first with Select Equity
Group from 2011 until 2016 then as a senior analyst covering the consumer sector with MIK Capital. Sarah started her career at Bain & Company,
spending a year in the private equity group and a year doing consulting projects for Fortune 500 companies. Sarah holds a B.A. in Economics from the
University of Chicago. She is a member of the CFA Institute and a CFA charterholder.
James ConnorsJames Connors, executive director, is an investment specialist within the U.S. Equity Group. An employee since 2005, James is the head of the
investment specialist team that is responsible for communicating investment performance, outlook and strategy positioning for the firm's US. Equity
Growth and Small Cap platform. Prior to his current role, James worked on the firm’s Large Cap Core Strategies. James has a B.S. in Finance from
Eastern Illinois University and holds the Series 7 and 63 licenses. He is a member of both the New York Society of Security Analysts and The CFA
Institute, and a CFA charterholder.
Jonathan ShermanJonathan Sherman, managing director, is the co-head of the U.S. Equity Investment Specialist Team within the U.S. Equity Group. An employee since
2005, Jonathan covers U.S. domestic institutional and funds clients as a portfolio specialist for U.S. Equities. In that capacity, Jonathan is responsible for
communicating investment performance, outlook and strategy positioning on behalf of the U.S. Equity portfolio management team. Additionally, Jonathan
has a specific focus on U.S. Equity Growth & Small Cap and Active U.S. Large Cap Core Strategies. Previously, Jonathan worked as a Senior Investment
Specialist within the International Equity Group. Prior to joining the firm, Jonathan worked as a director of Asset Allocation Product Management at UBS
Global Asset Management and as an analyst in the Equity Research and Global Economics Group at Merrill Lynch. Jonathan obtained a B.A. from
Syracuse University and an M.B.A. in Finance from Fordham University. He holds Series 7 and 63 licenses.
Nick Cangialosi
Nick Cangialosi, vice president, is an Investment Specialist in the U.S. Equity group. An employee since 2011, Nick is responsible for communicating
investment performance, outlook and strategy for the firm's U.S. Growth and Small Cap platform. Prior to joining the firm, Nick was as a P&L controller in
Morgan Stanley's fixed income business. Nick has a B.S. in business administration from the State University of New York College at Geneseo and holds
the Series 7 and 63 licenses. He is a member of the CFA Institute and is a CFA charterholder.
Doug Stewart
Douglas Stewart, vice president, is an Investment Specialist in the U.S. Equity group. An employee since 2011, Doug is responsible for communicating
investment performance, outlook and strategy for the firm's U.S. Growth & Small Cap platform as well as the Opportunistic Equity Long/Short Strategy. He
previously worked as a member of J.P. Morgan’s Investment Manager Research Team, with a primary focus on international equity strategies. Doug
obtained a B.S. in business management and finance from the Howe School of Business at the Stevens Institute of Technology. He holds Series 7 and 63
licenses. He also is a member of the New York Society of Securities Analysts and is a CFA charterholder.
GIPS® Report: Large Cap Growth Managed Accounts Composite
32
As of December 31, 2019
Glossary of investment terms
Active Share - a measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index.
Alpha - The amount of return expected from an investment from its inherent value.
Information ratio is a ratio of portfolio returns above the returns of a benchmark to the volatility of those returns.
Bottom-up investing - an investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles and market cycles.
BARRA tilts - The Barra Risk Factor Analysis is a multi-factor model, created by Barra Inc., used to measure the overall risk associated with a security relative to market performance.
Beta - A measurement of volatility where 1 is neutral; above 1 is more volatile; and less than 1 is less volatile.
Down-Market Capture - a statistical measure of an investment manager's overall performance in down-markets.
Earnings Per Share (EPS) - The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.
Excess Return – portfolio returns achieved above and beyond the return of its benchmark.
Free cash flow yield - a financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by
taking the free cash flow per share divided by the current share price.
Fundamental analysis - attempts to measure a security's intrinsic value by examining related economic and financial factors including the balance sheet, strategic initiatives,
microeconomic indicators, and consumer behavior.
Growth investing - Investment strategy that focuses on stocks of companies and stock funds where earnings are growing rapidly and are expected to continue growing.
Large-cap - The market capitalization of the stocks of companies with market values greater than $10 billion.
Mid-cap - The market capitalization of the stocks of companies with market values between $3 to $10 billion.
Performance attribution - a set of techniques that performance analysts use to explain why a portfolio's performance differed from the benchmark.
Price/Earnings 12-month forward - price of a stock divided by its projected earnings for the coming year.
Small-cap - The market capitalization of the stocks of companies with market values less than $3 billion.
Tracking Error - The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.
Turnover Ratio - Percentage of holdings in a mutual fund that are sold in a specified period.
Up-Market Capture – a statistical measure of an investment manager's overall performance in up-markets.
Valuation - An estimate of the value or worth of a company; the price investors assign to an individual stock.
Value investing - A strategy whereby investors purchase equity securities that they believe are selling below estimated true value. The investor can profit by buying these securities
then selling them once they appreciate to their real value.
Weighted Average Market Capitalization - Most indexes are constructed by weighting the market capitalization of each stock on the index. In such an index, larger companies
account for a greater portion of the index. An example is the S&P 500 Index.
33
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. These 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.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific
investment product, strategy, plan feature or other purpose. Any examples used are generic, hypothetical and for illustration purposes only. Prior to making any investment or financial
decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and
circumstances of an investor’s own situation.
RISK SUMMARY: 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 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 portfolio invests) may decline over short or extended periods of time. When the value of a portfolio’s securities goes down, an investment in a fund decreases in
value. There is no guarantee that the use of long and short positions will succeed in limiting the Fund's exposure to domestic stock market movements, capitalization, sector-swings or
other risk factors. Investment in a portfolio involved in long and short selling may have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling
involves certain risks, including additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale positions.
There can be no assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM or that the past performance or success of any such
professional serves as an indicator of such professional’s future performance or success.
Any securities/portfolio holdings mentioned throughout the presentation are shown for illustrative purposes only and should not be interpreted as recommendations to buy or sell. A full
list of firm recommendations for the past year are available upon request.
Past performance does not guarantee future results. Total returns assumes reinvestment of any income. The deduction of an advisory fee reduces an investor’s return. Actual account
performance will vary on individual portfolio security selection and the applicable fee schedule. Fees are available upon request.
The following is an example of the effect of compounded advisory fees over a period of time on the value of a client’s portfo lio: A portfolio with a beginning value of $100 million, gaining
an annual return of 10% per annum would grow to $259 million after 10 years, assuming no fees have been paid out. Conversely, a portfolio with a beginning value of $100 million,
gaining an annual return of 10% per annum, but paying a fee of 1% per annum, would only grow to $235 million after 10 years. The annualized returns over the 10 year time period are
10.00% (gross of fees) and 8.91% (net of fees). If the fee in the above example was 0.25% per annum, the portfolio would grow to $253 million after 10 years and return 9.73% net of
fees. The fees were calculated on a monthly basis, which shows the maximum effect of compounding.
Securities may be sold through J.P. Morgan Institutional Investments Inc., member FINRA.
Telephone calls and electronic communications may be monitored and/or recorded. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in
accordance with our privacy policies at https://www.jpmorgan.com/privacy
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its aff iliates worldwide. Those businesses include,
but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated, J.P. Morgan Alternative Asset Management, Inc., and
J.P. Morgan Asset Management (Canada), Inc.
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34
