Now newly enhanced new functionality, new analytics, more intuitive design

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TARGET DATE COMPASS

SM

EVALUATE AND SELECT TARGET DATE FUNDS

WITH GREATER KNOWLEDGE AND CONFIDENCE

SM

Now

newly enhanced —

new functionality, new analytics,

more intuitive design

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Target date funds have quickly become the most popular qualified default

investment alternative (QDIA). Evaluating this evolving universe of funds

can be a challenge for many plan sponsors because of the considerable

differences among funds—even those with the same target date.

IN A WORLD OF EVOLVING TARGET DATE FUNDS,

TARGET DATE COMPASS HELPS POINT YOU IN

THE RIGHT DIRECTION.

The groundbreaking introduction of Target Date Compass

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_{in 2008 by}

J.P. Morgan revolutionized the target date fund evaluation process.

This first-of-its-kind tool established a new benchmark for the evaluation and

selection of target date funds, helping financial advisors and plan sponsors

compare funds in an objective, documented and repeatable way.

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Why the need for a leading evaluation tool?

THE USE OF TARGET DATE FUNDS CONTINUES TO GROW

and now represents 70% of net flows

1

into defined contribution (DC) plans as the QDIA of choice. At the same time, research shows that 32%

of plan sponsors do not fully understand the methodology used to construct their target date funds.

2

Because ERISA holds plan fiduciaries legally responsible for prudently selecting and monitoring their

QDIA, the need for a premier evaluation tool has never been greater. Target Date Compass

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_{makes the}

comparisons easy.

Plan decision makers simply answer the tool’s five key questions and are mapped onto one of four Target

Date Type

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_{quadrants. Once there, they can compare the funds that match their type and review}

a detailed report of comparative analytics.

1_{Callan Investments Institute: DC Observer, Third Quarter 2013.} 2_{J.P. Morgan Plan Sponsor Research 2013.}

THE BENEFITS OF TARGET DATE COMPASS

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• Provides unbiased analytics for evaluating target date funds • Helps plan sponsors make prudent, defendable QDIA choices • Assists in identifying a target date fund that best aligns with

the plan’s goals

• Helps plan sponsors fulfill their fiduciary responsibilities • Facilitates important discussions about plan objectives,

risk tolerance, demographics and anticipated participant behaviors

32%

of plan sponsors

do not understand

how their target date

funds are constructed

100%

are legally

responsible for

prudent QDIA

selection

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Answers are scored to determine which Target Date Type (quadrant) best matches the goals and needs of the plan.

• Northwest Quadrant • Northeast Quadrant • Southwest Quadrant • Southeast Quadrant

Funds that match the plan’s type are then compared using the Target Date Compass Analysis Report, and a strategy can then be selected based on the funds’ appropriateness for plan goals.

Plan decision makers answer five key questions based on the following factors to assess the level of equity exposure at the target date and asset class diversification desired in the plan: • Plan goals

• Participants’ investment behaviors • Approach to risk management • Role of diversification • Asset class preferences

TA R G E T D AT E

S T R AT E G I E S

A L I G NE D TO M E E T

P L A N G OA LS

Plan sponsors and advisors are encouraged to regularly run the analysis to ensure that a plan’s target date fund continues to align with plan objectives.

Target Date Compass

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provides an objective,

documented and

repeatable process.

AT THE HEART OF TARGET

DATE COMPASS

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_{is the Compass}

Quadrant Map. It classifies funds with

similar investment orientations into

four Target Date Type quadrants using

two important characteristics: level of

equity exposure at the target date and

level of asset class diversification.

Determining a plan’s Target Date Type

begins with a simple questionnaire.

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The Target Date Compass

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Analysis Report provides a

detailed, unbiased comparison of your chosen funds.

TARGET DATE COMPASS

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_DELIVERS

_{the objective comparisons plan sponsors need to make informed QDIA decisions. Using simple}

charts and streamlined content, it presents a detailed analysis of the target date funds decision makers want to compare. Reports can

be customized to specific requirements. And, Target Date Compass can now be accessed on a tablet for easier access on the go.

ROBUST ANALYTICS TO SUPPORT YOUR CONVERSATIONS

REPORT PAGE NAME

DESCRIPTION

VALUE TO PLAN SPONSOR

COMPASS QUADRANT MAP

Plots chosen funds on the appropriate quadrants Illustrates which strategies most closely align with a plan’s goals and objectives

ASSET CLASS SUMMARY

Shows asset class exposures of each _{compared strategy} Provides insight into diversification of each strategy

EQUITY GLIDE PATH

Compares the percent of equities in each fund as it _{approaches the target date and beyond} Helps align the right strategy with the plan’s goals

SUMMARY

Presents mutual fund assets, glide path data and _{other fund structure information for each fund} Provides a comprehensive picture of the funds’ _{overall size and structure}

CALENDAR YEAR PERFORMANCE

Compares total return for multiple calendar years Shows consistency of strategy from year to year

PERFORMANCE & RANKINGS

Compares total return for 3-month, 1-year, 5-year _{and 10-year periods} Provides confidence in the strategy’s ability to _{deliver returns}

GROWTH OF $10K

Shows the growth of $10,000 for the 2020, 2030 and _{2040 funds of each compared strategy} Provides a tangible illustration of the strategy’s _{growth potential}

RISK/RETURN COMPARISON

Compares the 3- and 5-year risk/return of the chosen _{strategies for 2020, 2030 and 2040 funds} Allows plan sponsors to choose a strategy that best _{meets their tolerance for risk}

RISK/RETURN STATISTICS

Analyzes 3- and 5-year total returns, standard _{deviation, Sharpe ratio and information ratio} Provides a broader set of risk metrics

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An insightful approach to

target date fund evaluation

Plan sponsors face the critical responsibility of making target date

fund decisions that will directly impact the retirement savings

of plan participants. In a world of ever-evolving target date fund

strategies, making such prudent decisions is not only a challenge, it

is also a legal requirement.

Target Date Compass

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_{provides the insightful approach and}

documented process needed to evaluate the target date fund

universe. Using the program’s rich metrics and easy comparisons,

plan decision makers, working with their advisors, can quickly

choose the funds most aligned with their goals, confidently fulfill

their fiduciary responsibilities and make the best strategic choices

for their participants.

REGULARLY UPDATED, THIRD-PARTY DATA

ENSURES OBJECTIVITY

While Target Date Compass is powered by J.P. Morgan, all data for fund

comparisons is populated by Morningstar

®

_{, one of the most trusted}

providers of independent investment research. Data and calculations

used to determine each company’s target date fund placement on the

Compass Quadrant Map are updated on a quarterly basis.

NAVIGATE

THE TARGET DATE FUND UNIVERSE WITH THE

PROGRAM THAT PUT OBJECTIVE ASSESSMENT ON THE MAP.

Contact your J.P. Morgan representative to learn more about how Target Date Compass

can help inform, support and elevate your clients’ QDIA decision-making process.

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TARGET DATE FUNDS: Target date funds are funds with the target date being the approximate date when investors plan to start withdrawing their money. Generally, the asset allocation of each fund will change on an annual basis, with the asset allocation becoming more conservative as the fund nears the target retirement date. The principal value of the fund(s) is not guaranteed at any time, including at the target date.

Certain underlying funds of target date funds may have unique risks associated with investments in foreign/emerging market securities and/or fixed income instruments. International investing involves increased risk and volatility due to currency exchange rate changes, political, social or economic instability and accounting or other financial standards differences. Fixed income securities generally decline in price when interest rates rise. Real estate funds may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector, including, but not limited to, declines in the value of real estate, risk related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by the borrower. The fund may invest in futures contracts and other derivatives. This may make the fund more volatile. The gross expense ratio of the fund includes the estimated fees and expenses of the underlying funds. A fund of funds is normally best suited for long-term investors.

IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

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 investment management businesses of JPMorgan Chase & Co. and its affiliates worldwide.

Any and all information set forth herein and pertaining to the Target Date Compass and all related technology, documentation and know-how (“information”) is proprietary to JPMorgan Chase Bank, N.A. (“JPM”).

U.S. Patents No. 8,255,308; 8,386,361 and patent(s) pending. RI-COMPASS ADV 0414