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  • Form ADV Part 2A

    Firm Brochure

    J.P. Morgan Investment Management Inc.

    383 Madison Avenue, New York, NY 10179 (800) 343-1113 www.jpmorgan.com

    January 2, 2020

    This brochure provides information about the qualifications and business practices of J.P. Morgan Investment Management Inc. ("JPMIM" or the "Adviser"). If you have any questions about the contents of this brochure, please contact us at (800) 343-1113. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission (the "SEC") or by any state securities authority.

    Additional information about JPMIM, including a copy of the Adviser's Form ADV Part 1A, is also available on the SEC’s website at www.adviserinfo.sec.gov.

    JPMIM is registered as an investment adviser with the SEC. Such registration does not imply a certain level of skill or training.

    PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMODITY FUTURES TRADING COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR BROCHURE.

  • ITEM 2 Material Changes

    This brochure ("Brochure") dated January 2, 2020, contains the following material changes since it was last updated on October 30, 2019.

    • Item 17.A, Policies and Procedures Relating to Voting Client Securities - The section regarding "Mitigating Potential Conflicts" was updated to describe Exception Requests.

    For ease of reference, capitalized terms that are defined when first used in the Brochure are also set forth in the Key Terms section.

    J.P. Morgan Investment Management Inc. Form ADV | January 2, 2020

    1

  • ITEM 3 Table of Contents

    ITEM 1 - Cover Page —

    ITEM 2 - Material Changes 1

    ITEM 3 - Table of Contents 2

    ITEM 4 - Advisory Business 5

    A. General Description of Advisory Firm 5

    B. Description of Advisory Services 5

    C. Availability of Customized Services for Individual Clients 7

    D. Wrap Fee Programs 7

    E. Assets Under Management 12

    ITEM 5 - Fees and Compensation 12

    A. Advisory Fees and Compensation 12

    B. Payment of Fees 13

    C. Additional Fees and Expenses 14

    D. Prepayment of Fees 17

    E. Additional Compensation and Conflicts of Interest 18

    ITEM 6 - Performance-Based Fees and Side-by-Side Management 19

    A. Performance-Based Fees 19

    B. Side-by-Side Management and Potential Conflicts of Interest 19

    ITEM 7 - Type of Clients 20

    ITEM 8 - Methods of Analysis, Investment Strategies and Risk of Loss 21

    A. Methods of Analysis and Investment Strategies 21

    B. Material, Significant, or Unusual Risks Relating to Investment Strategies 29

    C. Risks Associated with Particular Types of Securities 42

    J.P. Morgan Investment Management Inc. Form ADV | January 2, 2020

    2

  • ITEM 9 - Disciplinary Information 43

    A. Criminal or Civil Proceedings 43

    B. Administrative Proceedings Before Regulatory Authorities 43

    C. Self-Regulatory Organization Proceedings 43

    ITEM 10 - Other Financial Industry Activities and Affiliations 43

    A. Broker-Dealer Registration Status 43 B. Futures Commission Merchant, Commodity Pool Operator, or Commodity Trading Advisor Registration Status 43

    C. Related Persons 44

    D. Material Conflicts of Interest Relating to Other Investment Advisers 48

    ITEM 11 - Code of Ethics, Participation or Interest in Client Transactions and Personal Trading 49

    A. Code of Ethics and Personal Trading 49

    B. Securities in which the Adviser or a Related Person Has a Material Financial Interest 50

    ITEM 12 - Brokerage Practices 64

    A. Factors Considered in Selecting or Recommending Broker-Dealers for Client Transactions 64

    B. Order Aggregation 68

    ITEM 13 - Review of Accounts 70

    A. Frequency and Nature of Review of Client Accounts or Financial Plans 70

    B. Factors Prompting Review of Client Accounts Other than a Periodic Review 71

    C. Content and Frequency of Account Reports to Clients 71

    ITEM 14 - Client Referrals and Other Compensation 71

    A. Economic Benefits Received from Third-Parties for Providing Services to Clients 71

    B. Compensation to Non-Supervised Persons for Client Referrals 72

    ITEM 15 - Custody 72

    ITEM 16 - Investment Discretion 73

    J.P. Morgan Investment Management Inc. Form ADV | January 2, 2020

    3

  • ITEM 17 - Voting Client Securities 73

    A. Policies and Procedures Relating to Voting Client Securities 73

    B. No Authority to Vote Client Securities and Client Receipt of Proxies 75

    ITEM 18 - Financial Information 75

    A. Balance Sheet 75

    B. Financial Conditions Likely to Impair Ability to Meet Contractual Commitments to Clients 75

    C. Bankruptcy Filings 76

    APPENDIX A - Separate Account Fee Schedules 76

    Key Terms 101

    J.P. Morgan Investment Management Inc. Form ADV | January 2, 2020

    4

  • ITEM 4 Advisory Business

    J.P. Morgan Investment Management Inc. Form ADV | January 2, 2020

    5

    A. General Description of Advisory Firm

    This Brochure relates to the investment advisory services offered by J.P. Morgan Investment Management Inc. ("JPMIM" or the "Adviser"). JPMIM, a Delaware corporation, is registered with the Securities and Exchange Commission ("SEC") as an investment adviser pursuant to the Investment Advisers Act of 1940, as amended (the “Advisers Act”). JPMIM, together with Bear Stearns Asset Management Inc., Highbridge Capital Management, LLC, J.P. Morgan Alternative Asset Management, Inc., JF International Management Inc., JPMorgan Asset Management (Asia Pacific) Limited, JPMorgan Asset Management (UK) Limited, JPMorgan Funds Limited, Security Capital Research & Management Inc., each an SEC registered investment adviser, various affiliated foreign investment advisers and the asset management division of JPMorgan Chase Bank, N.A. comprise the Asset Management ("AM") business of J.P. Morgan Asset & Wealth Management ("JPMAWM"). J.P. Morgan Asset Management ("JPMAM") is the marketing name for the AM businesses of JPMorgan Chase & Co. and its affiliates worldwide ("JPMC"). JPMC is a publicly traded global financial services firm.

    JPMorgan Asset Management Holdings Inc., which is a subsidiary of JPMC, owns all the common stock of JPMIM. JPMIM was incorporated in Delaware on February 7, 1984.

    B. Description of Advisory Services

    JPMIM and its "Affiliates" (as defined in Key Terms) in JPMAM provide a broad range of investment strategies to meet the diverse requirements of their clients' investment needs. JPMIM’s advisory services are offered on both a discretionary and non-discretionary basis through a variety of investment vehicles and arrangements, depending on the strategy. These include separately managed accounts (including direct advisory services or indirect advisory services through wrap fee programs) and pooled investment vehicles such as mutual funds, exchange-traded funds ("ETF") or private investment funds.

    Below is a brief description of the investment strategies and solutions offered by JPMIM. Major asset classes supported by JPMIM include: global equities, global fixed income, currency & commodities, global liquidity, index-oriented or beta, and alternatives including absolute return & opportunistic fixed income, real estate, infrastructure, transportation and private equity. JPMIM also offers asset allocation strategies and multi-asset portfolios, including fund of funds strategies and Environmental, Social and Governance ("ESG") solutions.

    Global Equities ("Equity" or "Equities") Investment Strategies.

    The following are some of the Adviser’s significant Equity strategies:

    • U.S. Equity, including Core, Value, Growth, Small Cap and Behavioral Finance

    • International Equity, including Global Real Estate Investment Trusts ("REITs"), International Behavioral Finance, Research Driven Process and Global Specialist

    • Emerging Markets Equity, including Core, Growth, Income, Balanced, Small Cap and Mid Cap

    • Asia Pacific ("APAC") Equity, including APAC Regional, the Association of Southeast Asian Nations ("ASEAN"), Greater China, India and Japan

    Global Fixed Income, Currency & Commodities ("GFICC") Investment Strategies.

    The following are some of the Adviser’s significant Fixed Income strategies:

  • • U.S. Broad Markets, including Core, Core Plus, Short Duration, Government, Mortgages, Inflation Linked and Intermediate

    • Global Broad Markets, including Global Credit, Global Aggregate and Global Rates

    • High Yield, including Broad, U.S., Global, Upper Tier, Distressed Debt and Loans

    • Emerging Market Debt, including Sovereign, Local Currency, Corporate Debt and Blended

    • Municipals

    • Specialty, including Unconstrained, Commodities and Curr

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