“ Each fixed income investment we make is approached with the utmost due diligence and a fiduciary mindset. As “lenders” of our clients’ money, we harness the power of our diverse perspectives in an effort to deliver stronger fixed income portfolios that help solve our clients’ needs. ”

Robert Michele Managing Director and Chief Investment officer

Head of the Global Fixed Income, Currency & Commodities Group

FOR WHOLESALE CLIENTS USE ONLY. NOT FOR RETAIL CLIENTS’ USE OR DISTRIBUTION

JPMorgan Global Strategic Bond Fund

2 | JPMORGAN GLOBAL STRATEGIC BOND FUND

Each fixed income investment we make is approached with

the utmost due diligence and a fiduciary mindset. As “lenders”

of our clients’ money, we harness the power of our diverse

perspectives in an effort to deliver stronger fixed income

portfolios that help solve our clients’ needs.

Robert MicheleManaging Director and Chief Investment officerHead of the Global Fixed Income, Currency & Commodities Group

JPMORGAN GLOBAL STRATEGIC BOND FUND | 3

The role of Fixed Income and problems to be aware of

Government bond allocations have traditionally played an important role in well-built portfolios, generating income, preserving capital and helping to diversify risks from more volatile allocations like equities. Over the past 30 years these bond allocations have performed well. As interest rates globally have fallen, in response to slowing economic growth and falling levels of inflation, government bond allocations have provided strong returns through coupon income and capital gains from increasing bond prices.

However, as the chart below indicates, the income component from the coupon has been getting lower and lower as governments have been able to issue bonds at lower interest rates. Investors should be aware that as a result, the coupon component may not be able to dampen future negative price movements in the same way it has done historically. In addition, while capital gain is increasingly a large component of fixed income returns, they are not guaranteed and can easily become capital losses. Therefore, having a manager who can both capture the opportunities and avoid the risks can make a big difference in your fixed income portfolio.

BLOOMBERG BARCLAYS GLOBAL AGGREGATE INDEX ANNUAL RETURN COMPONENTS

As at 31 July 2017. Source: Barclays Live. Past performance is not necessarily a reliable indicator for current and future performance.

SELECT GOVERNMENT 10 YEAR BOND YIELDS

What can investors do?

Diversification. As the income component has fallen, investors need to broaden their investment scope beyond traditional domestic government bonds into international government bonds, corporate bonds (both investment grade and high yield) and other areas of the global fixed income markets. Bonds will still play a critical role in an investor’s portfolio now and in the future, but they need to work harder to achieve an investors’ goal of income, capital preservation and diversification.

Source: FactSet, Tullett Prebon, J.P. Morgan Asset Management. Guide to the Markets - Europe. Data as of 30 June 2017.

INSIGHTS

0

6

12

18%

Fed QE32012

Fed QE22010

Fed QE2008

Oil shock1981

Black Friday1987

Asian currencycrisis1997

9/11 attacks2001

Dot combubble

Feb 2000

Fall of BerlinWall1989

ECB QE2015

BoE QE2009

Britain leavesEuropean Exchange

Rate Mechanism1992

Brexitvote2016

USelection

2016

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

US UK Germany Japan

Capital Gain ReturnCoupon Return Yield to Maturity (RHS)

-2%

-1%

0%

1%

2%

3%

4%

5%

-4%

-2%

0%

2%

4%

6%

8%

10%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

YTD

Total return Yield to Maturity

4 | JPMORGAN GLOBAL STRATEGIC BOND FUND

KEY FEATURES OF THE FUND

• ‘Best ideas’ actively managed global bond fund

• Diversified opportunity set across global fixed income and currency markets

• Dynamic sector management, aiming to only take risk when compelling investment opportunities are identified

• Focused on mitigating downside risk

JPMorgan Global Strategic Bond Fund

Shown for illustrative purposes only. Because everyone’s circumstances are unique, these models can provide a framework for discussion between you and your financial adviser. They should not be taken as one-size-fits-all investment advice. Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss.

Risk level of the fundMedium risk. As the fund substantially invests the majority of its assets in debt securities issued in developed and emerging markets, including, but not limited to, debt securities of governments and their agencies, state and provincial governmental entities, supranational organisations, corporations, banks, asset-backed securities and mortgage-backed securities, the fund is considered medium to high risk since these investments are considered a medium to high risk asset class. Please refer to the Product Disclosure Statement and Reference Guide for more information.

INVESTMENT OBJECTIVE

To achieve a return in excess of the Bloomberg AusBond Bank Bill Index by exploiting investment opportunities in, amongst others, the debt and currency markets, using financial derivative instruments where appropriate.

EXTENDED SECTORSSeeks income and total return

CORE COMPLEMENTSSeeks reduced correlations to core holdings

CORE HOLDINGSSeeks lower volatility and diversification to equities

Absolute return strategiesLower volatility band

GLOBALSovereign bonds

High gradecorporate bonds

AUSTRALIANSovereign bonds

High gradecorporate bonds

Lower sensitivity to interest

rates Currency

ConcentratedHigher volatility band

JPMorgan GlobalStrategic

Bond Fund

INSIGHTS

JPMORGAN GLOBAL STRATEGIC BOND FUND | 5

ANNUALISED PERFORMANCE AND DISTRIBUTION

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1 Month 3 Months 6 Months 1 Year 2 Year 3 Year SinceInception

JPM Global Strategic Bond Fund Benchmark*

%

Source: J.P. Morgan Asset Management as at 31 July 2017. Net of fees performance is calculated on Bid – Bid with gross income reinvested, e.g. net of ongoing fees and expenses.* Benchmark: Bloomberg AusBond Bank Bill Index.

DELIVERING STABLE INCOME

DISTRIBUTION FOR QUARTER END ACTUAL DISTRIBUTION YIELD

30 September 2015 0.69%30 December 2015 1.13%

31 March 2016 1.15%30 June 2016 1.20%

30 September 2016 0.77%31 December 2016 0.59%

31 March 2017 0.61%30 June 2017 0.71%

HOW TO INVEST AND CONTACT DETAILSThe JPMorgan Global Strategic Bond Fund is available on most major platforms including:

AMP North iAccess Summit

Portfolio Care AMP Multiport AMP Personalised Portfolio

Asgard BT Panorama BT Wrap

Colonial First Wrap HUB24 IOOF Employee Super

IOOF Portfolio Service IOOF Pursuit Core IOOF Pursuit Select

Macquarie Wrap MLC Navigator MLC Wrap

netwealth PowerWrap Wholesale-directed

mFund Settlement Service

INSIGHTS SOLUTIONS

Source: J.P. Morgan Asset Management as at 30 June 2017. Past performance is not a reliable indicator of future performance and investors may not get back the full amount invested. Future performance and return of capital is not guaranteed.

SUITABILITY / INTENDED INVESTORS

JPMorgan Global Strategic Bond Fund is a bond fund for investors looking for an absolute return that seeks to exceed the return of the Benchmark in diverse market environments over time from a combination of capital appreciation and income while reducing the likelihood of capital losses on a medium term basis through a flexible, diversified multi-sector approach.

6 | JPMORGAN GLOBAL STRATEGIC BOND FUND

Harness the power of our research

We have developed our fixed income capabilities with one central aim: to build stronger portfolios to solve client needs. Today, we are one of the world’s largest fixed income managers, with deep research capabilities, a diverse product palette across sectors and regions, and broad expertise developed over 60 years of changing market cycles.

1 J.P.Morgan Asset Management. As of June 30, 2017. Includes portfolio managers, research analysts, traders and client portfolio managers. Industry experience calculated for portfolio managers/traders with a title of VP or above.

275+ FIXED INCOME INVESTMENT PROFESSIONALS1

11 LOCATIONS IN 7 COUNTRIES

19 INVESTORS’ AVERAGE YEARS OF EXPERIENCE1

1 CENTRALISED RESEARCH, RISK & TRADING PLATFORM

INSIGHTSSOLUTIONS

JPMORGAN GLOBAL STRATEGIC BOND FUND | 7

Deep research | Strong risk management

A COMMON GLOBAL RESEARCH LANGUAGE

Every investment decision we make is backed by proprietary research.

Fundamental factors include macroeconomic data (such as growth and inflation) as well as corporate health figures (such as default rates, earnings and leverage metrics)

Quantitative valuations is a measure of the extent to which a sector or security is rich or cheap (on both an absolute basis as well as versus history and relative to other sectors)

Technical factors are primarily supply and demand dynamics (issuance and flows), as well as investor positioning and momentum

INTEGRATED, MULTI-LAYERED RISK MANAGEMENT

Risk management is embedded at every stage of our investment process – from establishing our quarterly investment strategy, to selecting individual securities, to constructing portfolios.

Our multi-dimensional risk framework combines proprietary and recognised third-party tools with multiple layers of oversight, acknowledging that risk in fixed income is dynamic and multi-faceted, and that no single measure can capture all aspects of risk.

PROPRIETARYRISK TOOLS

SCENARIO ANALYSIS

INDEPENDENT RISK OVERSIGHT

Used to monitor volatility, correlation

and duration

Allows us to test for “worst case”

historical and customised scenarios

Ensures regular review of portfolio

risk exposures

CAPABILITIES

NOTES Net of fees performance is calculated on Bid – Bid with gross income reinvested, e.g. net of ongoing fees and expenses.FX Adjusted returns have been calculated by JPMAM. Blended benchmarks have been calculated by JPMAM.

IMPORTANT INFORMATIONFOR WHOLESALE CLIENT USE ONLY. NOT FOR RETAIL CLIENTS’ USE OR DISTRIBUTIONThis information has been provided by JPMorgan Asset Management (Australia) Limited (ABN 55143832080) (AFSL 376919), the manager of the fund featured in this document. Perpetual Trust Services Limited (ABN 48 000 142 049) (AFSL 236648) is the fund’s Responsible Entity. This document is for information purposes only and should not be taken as containing any financial product advice or recommendation. It does not take into account an individual’s financial circumstances. Investors should consider the Product Disclosure Statement of the fund (available from www.jpmorganam.com.au) to understand the various risks associated with investing in the fund and in making any investment decision. Past performance is not a reliable indicator of future performance and investors may not get back the full amount invested. Future performance and return of capital is not guaranteed. Information is considered correct at the time of issue but no liability for errors or omissions will be accepted by JPMorgan Asset Management (Australia) Limited or its affiliates. This document is confidential and intended solely for the person to whom it is provided by the issuer.Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) are not affiliated with the Manager and do not approve, endorse, review, or recommend the Fund. Bloomberg and the Benchmark are trademarks or service marks of Bloomberg and have been licensed to the Manager. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Benchmark.

4d03c02a8004f3c6APAC–CS-27869

NEXT STEPSFor more information, please contact us on:

Telephone: 1800 576 468 Email: jpmorgan.funds.au@jpmorgan.comWeb: www.jpmorganam.com.au

FOR WHOLESALE CLIENTS USE ONLY. NOT FOR RETAIL CLIENTS’ USE OR DISTRIBUTION

BUILDING STRONGER

PORTFOLIOS At J.P. Morgan Asset Management, collaborating

with our clients in an effort to build stronger portfolios drives everything that we do.

We are committed to sharing our expertise, insights and solutions across all

asset classes to help make better investment decisions. Whatever you are

looking to achieve, together we can solve it.