locate an office

offices near you

office near you

Investment Strategy

Three steps you can take to maximize tax alpha

Mar 3, 2023

Tax-loss harvesting strategies offer an efficient way to reduce your tax bill - here are three ways to keep the tax benefits coming for longer.

In this article, we explore the dynamics leading to a gradual decrease of loss harvesting opportunities over the longer-term and ways that investors can mitigate that. If you'd like a more foundational overview of key concepts of loss harvesting, please visit this article – where we discuss how tax loss harvesting can turn market volatility into potential tax savings.

Key takeaways

  • For investors who want to minimize their tax liabilities on anticipated realized gains in their portfolios, tax-loss harvesting strategies provide opportunities to generate losses that may create tax alpha and reduce their tax bills at the end of the year.
  • The historically upwards direction of the markets and the gradual decrease of the portfolio’s cost basis over time, given loss harvesting, can ultimately mute opportunities for tax-loss harvesting over the longer term, resulting in tax alpha decay.
  • Even for an investor who doesn’t take proactive action to mitigate tax alpha decay, the market’s natural volatility can help preserve a loss harvesting strategy’s ability to generate tax alpha in the longer-term with our research showing that investors may get the welcome benefit of potential tax savings during periods of unwelcome market volatility.
  • Beyond that, investors can take things into their own hands to prolong the potential benefits of tax-loss harvesting — for example, by adding cash to their accounts, gifting appreciated securities to a donor-advised fund, and regularly rebalancing their portfolios to create fresh tax lots.

 

Investors that want to reduce their U.S. tax liabilities can do so in multiple ways — such as ensuring that the type of account (i.e., taxable or tax-deferred) is best aligned to the holding type, looking for opportunities to tax-loss harvest, tax-aware borrowing, and considering charitable gifting depending on their intents for their wealth. These approaches ultimately result in “tax alpha” for the investor ( i.e., the incremental value-add resulting from tax-efficient management). 

For investors looking to minimize their tax bills on anticipated realized gains in their portfolios, tax-loss harvesting strategies provide opportunities to actively generate losses that may be used to reduce their tax bills at the end of the year. Effectively, these strategies allow investors to keep more of their returns by using market volatility to their advantage. Thanks to innovation in technology and intelligent automation, tax-loss harvesting has gone from a year-end manual process to a best practice made possible all year-round — pinpointing losses across the portfolio and harvesting them, all while keeping the risk attributes of the portfolio intact.

With the increasing adoption of tax-loss harvesting strategies among investors, it’s important to address longer-term expectations. While tax-loss harvesting seeks to enhance a portfolio’s after-tax returns by seeking out potential tax savings, there are a few aspects to be cognizant of that will help investors continue generating tax benefits over the longer term, and that will help achieve the strategic intents for their portfolio.

“Tax alpha decay” is the creeping degradation of after-tax returns over the longer term.

If left unchecked, the tax alpha potential of any tax-loss harvesting strategy is likely to erode over time due to two forces:

(1) Markets historically go up. Hold on to any stock long enough, and historical market   data shows its value is likely to increase over time. This dynamic means that a client’s potential for tax-loss harvesting is typically highest when first funded, and embedded losses tend to diminish over the long haul.

To illustrate this point, let’s look at the chart below — showing how the percentage stocks at a loss reduces over longer-term return periods (using S&P 500 holdings at the end of 1999 as the starting point).1 Looking forward during that timeframe, a higher percentage of stocks that you started with will tend to be at gains, making the process of finding losses to harvest all the more challenging.

Percentage of stocks at a loss reduces over longer-term return periods (using S&P holdings at the end of 1999 as the starting point)1

Source:  J.P. Morgan Asset Management, analysis period: 1999-2021. Data as of December 2021
Area chart illustrating the % of S&P 500 stocks with negative returns (y-axis) through 2021, using S&P 500 holdings at the end of 1999 as the starting point. S&P 500 holdings were taken at the end of 1999, and performance of those holdings was calculated over the listed time frames, showing total percentage of stocks at a loss for the time frames listed. The chart articulates the point that the percentage of stocks at a loss reduces over longer-term return periods. The percentage of stocks with negative returns spiked up to around ~50% during major historical events such as 9/11 and the Great Financial Crisis of 2007-2008, but steadily declined otherwise.

(2) As losses are harvested in the portfolio, its cost basis will decrease over time. If the stocks purchased as substitutes for the ones that were harvested do well, it increases the spread between the price at which they’re bought (their cost basis) and the stock’s current value.

The combination of the historically upward direction of the market and the gradual decrease of the portfolio’s cost basis over time can ultimately mute the opportunities for tax-loss harvesting over the longer-term, resulting in tax alpha decay.

Even if you don’t take action, the market’s natural volatility can help extend benefits of tax-loss harvesting and delay tax alpha decay

Market volatility is the primary source of losses to harvest and turn into tax benefits, and can help preserve a loss harvesting strategy’s ability to generate tax alpha — even if an investor chooses to just wait for the next bout of volatility rather than take proactive action to delay tax alpha decay.

Our analysis shows that while the potential for tax alpha may decrease over time, it does not necessarily go to zero — given the ongoing divergence in individual stock returns that occurs even in upward-trending markets. In the figure below, we show the average tax alpha relative to the S&P 500 Index by years since funding, for hypothetical portfolios incepted in each year beginning in 2010 and held through 2021. The portfolios sought to deliver returns similar to the S&P 500 Index, while harvesting losses on a monthly basis in order to enhance after-tax returns.2 While tax alpha did decrease meaningfully after the first few years, the potential for tax alpha remained even in later years — with 80 basis-point average tax alpha in years 5–12.

Source: J.P. Morgan Asset Management, analysis period 2010-2021. Data as of December 2021.
Bar chart of the average tax alpha relative to the S&P 500 Index by years since funding from 2010 through 2021. Analysis was done using hypothetical portfolios incepted in each year beginning in 2010 and held through 2021. The portfolios sought to deliver returns similar to the S&P 500 Index, while harvesting losses on a monthly basis in order to enhance after-tax returns. Each portfolio was rebalanced on a monthly basis if tax loss harvesting opportunities existed, or if expected tracking error exceeded 1%. While tax alpha decreased meaningfully after the first few years since funding, the potential for tax alpha remained even in later years – with 80bps average tax alpha in years 5-12. The returns shown are annualized and compounded over time. Note that all returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance.
To drill one layer deeper into the relationship between potential tax savings and market volatility, we analyzed monthly tax alpha3 alongside VIX levels4 — with the data showing that investors may get the welcome benefit of potential tax savings during periods of unwelcome market volatility.
Source: J.P. Morgan Asset Management, analysis period 2007-2021.
Bar chart illustrating the relationship between market volatility (represented by VIX) and potential tax savings. VIX is the ticker symbol for the Chicago Board Options Exchange's CBOE Volatility Index, which is a real-time market index representing the market's expectations for volatility over the coming 30 days. Analysis period is between 2007-2021. To construct the analysis, we simulated a cash-funded portfolio that was created on the first day of each year and subsequently rebalanced on a monthly basis if tax loss harvesting opportunities were present or tracking error exceeded 1%. The chart shows that months with the highest VIX level also experienced the highest tax alpha, ranging up to 3%. From these results, we can see that investors may experience potential tax savings during periods of market volatility. Note that all returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance.

While it might be an unattractive environment for most investors, prolonged periods of volatility can effectively extend the potential benefits that we tend to see early on with tax-loss harvesting accounts and help delay tax alpha decay.

Rather than wait for the next bout of volatility, here are three steps investors can proactively take to mitigate tax alpha decay and optimize tax efficiency of their portfolios.

Investors can take matters into their own hands by contributing cash into their accounts to introduce fresh tax lots.5 New dollars invested create a new (many times higher) cost basis, so any ensuing volatility after a cash contribution may create additional opportunities for harvesting those fresh tax lots. To illustrate that, we compared tax alpha over 12 years for two portfolios —both incepted in 2010. Portfolio A (represented by the navy bar) stayed invested without any subsequent cash contributions post-inception. Portfolio B (represented by the teal bar) also stayed invested — but made cash contributions of 5% of its market value at the beginning of each year starting in 2010.6

Portfolio B’s annual cash contributions injected a fresh set of tax lots each year into the account, increasing the opportunity for tax-loss harvesting to take advantage of any subsequent market volatility. Portfolio B’s cumulative tax alpha experience became increasingly better over time relative to Portfolio A — with 4.5% of additional cumulative tax alpha at the end of 2021 given the annual cash contributions into the account.

Source: J.P. Morgan Asset Management, analysis period 2010-2021. Data as of 2021. 
Bar chart representing the tax alpha experience of two portfolios, Portfolio A (blue bar) and Portfolio B (purple bar). Analysis period is between 2010-2021 (x-axis) compared to cumulative tax alpha relative to the S&P 500 (y-axis). Portfolio A illustrates no cash contributions to the portfolio over the 12 years represented, while Portfolio B contributed 5% of its value in cash annually. Each portfolio is rebalanced on a monthly basis if tax loss harvesting opportunities exist, or if expected tracking error exceeds 1%. Portfolio B saw 4.5% of additional cumulative tax alpha at the end of 2021 given additional loss harvesting opportunities created by fresh tax lots from annual cash contributions. The returns shown are annualized and compounded over time. Note that all returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance.

Investors who have philanthropy as one of the objectives for their wealth can benefit from potential tax deductions by gifting appreciated securities (e.g., to a donor-advised fund). For investors who itemize deductions on their tax returns instead of taking the standard deduction, gifting qualified appreciated stock that has been held for over a year (e.g., to a donor-advised fund) can unlock an additional way to save more on taxes.

Donating stock that’s been held for over a year to charity generally allows the investor to take a tax deduction for the full fair market value — subject to limitations based on adjusted gross income — that can be used in the tax year in which the gift is made with any excess charitable deductions carried forward for use in five subsequent years. Furthermore, the capital gains tax that would be incurred from selling the stock and donating the proceeds can potentially be eliminated — increasing the value of the charitable contribution by over 20%.7

Once appreciated stock is donated, the portfolio can be replenished with cash to purchase the same or similar stock. This will create fresh tax lots with higher cost bases — complementing the tax benefit of charitable gifting by leading the way for additional tax-loss harvesting opportunities and extending the runway for tax benefits.9

Source: J.P. Morgan Private Bank
This chart details tax savings outcomes from two different scenarios: Scenario 1 where the client sells their shares and donates the after-tax proceeds to a Donor Advised Fund (DAF), and Scenario 2 where the client donates their qualified appreciated stock directly to the DAF. Both scenarios assume that the client has adjusted gross income (AGI) of $1mm per year. The client who donated the qualified appreciated stock directly to the DAF saves ~$33,510 more on taxes and was able to donate an additional $23,800 to the DAF. Analysis assumes the top tax rate at the federal level (40.8%) as well as a 3.8 % Medicare surtax.

By regularly monitoring and rebalancing their portfolios, investors can create more fresh tax lots — leading to new potential opportunities for ongoing harvesting. A robust approach to rebalancing is key to keeping the portfolio in line with its investment objectives. In addition to that, new tax lots created with the proceeds of trimming outsized exposures can provide additional runway for tax-loss harvesting, extending the benefits of a loss-harvesting strategy.

Want to learn more?

For investors who are looking to reduce their tax bills on anticipated realized gains, ongoing tax-loss harvesting is a powerful tool that can potentially help them keep more dollars invested and enhance after-tax returns. In addition to a thoughtful planning and execution of a tax-loss harvesting strategy, there are additional steps that investors can take to get the most from their tax-smart investments. Reach out to your J.P. Morgan team to learn more. 

1Analysis period: 1999–2021. S&P 500 holdings taken at the end of 1999, and performance of those holdings was calculated over the listed time frames, showing total percentage of stocks at a loss for the time frames listed. GFC = Great Financial Crisis of 2007–2008.

2Analysis period: 2010–2021. All returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance. Each portfolio is rebalanced on a monthly basis if tax-loss harvesting opportunities exist, or if expected tracking error exceeds 1%.  The returns shown are annualized and compounded over time.

3Analysis period: 2007–2021. All returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance. A simulated cash funded portfolio was created on the first day of each year, and subsequently rebalanced on a monthly basis if tax-loss harvesting opportunities were present, or if expected tracking error exceeded 1%. Each portfolio created is managed in accordance with these rules through the end of 2021.

4VIX is the ticker symbol for the Chicago Board Options Exchange's CBOE Volatility Index, which is a real-time market index representing the market's expectations for volatility over the coming 30 days. Indices are not investment products and may not be considered for investment.

5A tax lot contains details of a security’s acquisition, such as acquisition date, cost basis, and size of transaction. Introducing cash into the portfolio allows for purchasing securities at their current cost, increasing the possibility that any ensuing volatility will result in loss-harvesting opportunities.

6Analysis period: 2010–2021. All returns are hypothetical in nature and should not be relied on to reflect actual client experiences or performance. Each portfolio is rebalanced on a monthly basis if tax-loss harvesting opportunities exist, or if expected tracking error exceeds 1%. The returns shown are annualized and compounded over time.

7Assumes maximum federal long-term capital gains tax rate of 20%, plus the Medicare surtax of 3.8%. In this example, comparison is made between an investor selling their holding and paying tax on the proceeds, and then donating the net proceeds versus an investor who donates their qualified appreciated stock.

8When purchasing securities to replenish the account, investors should be mindful of the wash sale rule in the case where losses were harvested on the same or substantially identical security in this account, or other accounts of the same taxpayer.

9This hypothetical example is for illustrative purposes only. Rates shown assume top tax rate at federal level, including 3.8% Medicare surtax, and doesn’t take into account any state or local taxes. The tax savings shown is the tax deduction multiplied by the donor’s income tax rate (40.8% in this example), minus the long-term capital gains taxes paid. This example assumes that the taxpayer has adjusted gross income (AGI) of $1 million per year. Cash contributions to donor-advised funds are deductible up to 60% of the taxpayer's AGI.

The fair market value of appreciated stock contributions to donor-advised funds are deductible up to 30% of the taxpayer's AGI.

Contributions in excess of the percentage limitation may be carried forward for use by the taxpayer in the next five tax years.

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

*Required Fields

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

Enter your First Name

> or < are not allowed

Only 40 characters allowed

Enter your Last Name

> or < are not allowed

Only 40 characters allowed

Select your country of residence

Enter valid street address

> or < are not allowed

Only 150 characters allowed

Enter your city

> or < are not allowed

Only 35 characters allowed

Select your state

> or < are not allowed

Enter your ZIP code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your postal code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your phone number

Tell Us More About You

0/1000

Only 1000 characters allowed

> or < are not allowed

Checkbox is not selected

Your Recent History

Important Information

Tax-loss harvesting may not be appropriate for everyone. If you do not expect to realize net capital gains this year, have net capital loss carryforwards, are concerned about deviation from your model investment portfolio, and/or are subject to low income tax rates or invest through a tax-deferred account, tax loss harvesting may not be optimal for your account. You should discuss these matters with your investment and tax advisors.

JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

GENERAL RISKS & CONSIDERATIONS

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/ reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Your investments and potential conflicts of interest

Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.

Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward-looking views in order to meet the portfolio's investment objective.

As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.

While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.

Legal entity, brand & regulatory information

In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPM. Products not available in all states.

In Germany, this material is issued by J.P. Morgan SE, with its registered office at Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB). In Luxembourg, this material is issued by J.P. Morgan SE – Luxembourg Branch, with registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Luxembourg Branch is also supervised by the Commission de Surveillance du Secteur Financier (CSSF); registered under R.C.S Luxembourg B255938. In the United Kingdom, this material is issued by J.P. Morgan SE – London Branch, registered office at 25 Bank Street, Canary Wharf, London E14 5JP, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – London Branch is also supervised by the Financial Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by J.P. Morgan SE, Sucursal en España, with registered office at Paseo de la Castellana, 31, 28046 Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE, Sucursal en España is also supervised by the Spanish Securities Market Commission (CNMV); registered with Bank of Spain as a branch of J.P. Morgan SE under code 1567. In Italy, this material is distributed by 
J.P. Morgan SE – Milan Branch, with its registered office at Via Cordusio, n.3, Milan 20123, Italy, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Milan Branch is also supervised by Bank of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB); registered with Bank of Italy as a branch of J.P. Morgan SE under code 8076; Milan Chamber of Commerce Registered Number: REA MI 2536325. In the Netherlands, this material is distributed by J.P. Morgan SE – Amsterdam Branch, with registered office at World Trade Centre, Tower B, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Amsterdam Branch is also supervised by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) in the Netherlands. Registered with the Kamer van Koophandel as a branch of
J.P. Morgan SE under registration number 72610220. In Denmark, this material is distributed by J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland, with registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland is also supervised by Finanstilsynet (Danish FSA) and is registered with Finanstilsynet as a branch of J.P. Morgan SE under code 29010. In Sweden, this material is distributed by J.P. Morgan SE – Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 11147, Sweden, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Stockholm Bankfilial is also supervised by Finansinspektionen (Swedish FSA); registered with Finansinspektionen as a branch of J.P. Morgan SE. In France, this material is distributed by JPMorgan Chase Bank, N.A.–Paris Branch, registered office at 14,Place Vendome, Paris 75001, France, registered at the Registry of the Commercial Court of Paris under number 712 041 334 and licensed by the Autorité de contrôle prudentiel et de resolution (ACPR) and supervised by the ACPR and the Autorité des Marchés Financiers. In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, with registered address at rue du Rhône, 35, 1204, Geneva, Switzerland, which is authorised and supervised by the Swiss Financial Market Supervisory Authority (FINMA) as a bank and a securities dealer in Switzerland.

In Hong Kong, this material is distributed by JPMCB, Hong Kong branch. JPMCB, Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by JPMCB, Singapore branch. JPMCB, Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by JPMCB, Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by JPMCB Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank, N.A., a national banking association chartered under the laws of the United States, and as a body corporate, its shareholder’s liability is limited.

With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions. We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities or instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the Fund may not be publicly offered in any Latin American country, without previous registration of such fund´s securities in compliance with the laws of the corresponding jurisdiction. Public offering of any security, including the shares of the Fund, without previous registration at Brazilian Securities and Exchange Commission–CVM is completely prohibited. Some products or services contained in the materials might not be currently provided by the Brazilian and Mexican platforms.

References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan team.

JPMorgan Chase Bank, N.A. (JPMCBNA) (ABN 43 074 112 011/AFS Licence No: 238367) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by JPMCBNA in Australia is to “wholesale clients” only. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

JPMS is a registered foreign company (overseas) (ARBN 109293610) incorporated in Delaware, U.S.A. Under Australian financial services licensing requirements, carrying on a financial services business in Australia requires a financial service provider, such as J.P. Morgan Securities LLC (JPMS), to hold an Australian Financial Services Licence (AFSL), unless an exemption applies. JPMS is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the SEC, FINRA and CFTC under US laws, which differ from Australian laws. Material provided by JPMS in Australia is to “wholesale clients” only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly, to any other class of persons in Australia. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

This material has not been prepared specifically for Australian investors. It:

  • may contain references to dollar amounts which are not Australian dollars;
  • may contain financial information which is not prepared in accordance with Australian law or practices;
  • may not address risks associated with investment in foreign currency denominated investments; and
  • does not address Australian tax issues.

 

© 2023 JPMorgan Chase & Co. All rights reserved.

LEARN MORE About Our Firm and Investment Professionals Through FINRA Brokercheck

To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products

 

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.