EFTA01520638.pdf

GHISLA1NE MAXWELL ACCT. For the Period 3/1/11 to 3/31/11 Hedge fund redemptions are generally on a monthly, quarterly or annual basis but can sometimes be subject to a multi-year lockup before a redemption is permitted. For redemptions, there is generally a notification period that can be a long interval before the actual redemption date. Redemption proceeds are generally paid 3-5 business days after the final NAV is Issued, but can be subject to a holdback of a portion of the proceeds until an annual audit of the Fund has been completed. Please refer to the applicable hedge fund's operative documentation for further details. Global Access Portfolios share certain characteristics with hedge hinds. In particular, an investor who withdraws from a Global Access Portfolio will not receive the withdrawal proceeds in their entirety until 30-60 days after completion of the Portfolio's audit, which may be 18 months or longer after the redemption date. Interest may not be paid on any proceeds pending distribution. These restrictions apply even if the investors account at JPMorgan is closed. The Confidential Private Placement Memorandum and applicable Supplements contain other important information about the Global Access Portfolios and are available upon request. For hedge funds, one of two methods will be used on this statement to report how incentive fees that may be owed to the General Partner or Manager are paid. The first method is called "Series of Shares and Consolidation Method" and will allocate a new series of the hedge fund at a par value (e.g. 1. 100 or 1000) for every subscription period during the year and a different NAV will be tracked for each series. At the end of the applicable incentive fee period (generally the end of the year). any series for which an incentive fee is payable (i.e., the fund has a net profit or is over the applicable "high water mark" and known as the "Consolidating Series") will be incorporated with and consolidated as part of the earliest series issued by the fund in which an investor has subscribed for which an incentive fee is payable (the "Lead Series"). Investors holding shares in a Consolidating Series will have their shares redeemed from each of the Consolidating Series and simultaneously be issued additional shares of the Lead Series (based on the NAV of the Lead Series on the conversion date). Any series for which an incentive fee is not payable (i.e. the fund has a net loss or is not over the applicable "high water mark") will remain as a separate series until the following incentive fee period ends (generally at year-end), when it will again be evaluated and consolidated as part of the Lead Series if the previously described criteria is met. The second method is called the "Equalization Method". "Equalization" is an accounting methodology used to ensure that each investor in a hedge fund is paying his/her equitable allocation of incentive fees. Unlike the Series of Shares method, shares held by all investors are valued at the same NAV. The "Equalization Amount" reflects an amount deducted from the subscription amount in order to "equalize" the incentive fees among investors Investing to the Fund in the current year. The "Equalization Factor" used to determine the Equalization Amount may vary among Investors and depends on both the date at which an investor subscribes to the fund and the fund's current level of performance. An investor who subscribes to a fund following the initial closing date will have an Equalization Amount effectively segregated from the subscription amount utilized to purchase shares. The Equalization Amount can change over time, depending on any new investors entering the fund as the amount is again "equalized" to ensure each investor has an equitable allocation of incentive fees. Note that a change in equalization over time can result in a negative Equalization Amount. A negative equalization amount implies a potential reduction in investor shares to pay incentive fees to the Manager. There are two Equalization Methods commonly used today: 'Redemption Method" or "Depreciation Method". Under both methods, if the fund is up in value from its inception date and from the date in which an investor has invested at the end of the applicable period (generally year-end) the Equalization Amount is used by the Fund to issue additional shares to the investor. If the investor had invested in the fund when the hind Is down in value from Its inception date and the fund subsequently goes up in value (at or beyond the applicable high water mark), under the Redemption Method an investors shares will be redeemed to pay incentive fees owed to the manager. Under the Depreciation Method, an amount is deducted from the subscription amount and credited as a depreciation deposit which is then used to pay incentive fees owed to the General Partner or Manager on an ongoing basis. For additional information, refer to the hedge fund's operating documents. 4. Alternative assets may include publicly available mutual funds that utilize non-traditional investment management strategies, for example, strategies commonly employed by hedge funds, Mutual funds generally calculate the price (the "Net Asset Value" or "NAV') on a daily basis and mutual fund NAVs shown on your statement generally will be the NAV as of the close of the last business day for this statement period. Please refer to the applicable mutual fund prospectus for further details. If the applicable mutual fund is a JPMorgan Fund, please refer to disclosures on this statement concerning JPMorgan Funds for other important information. J.P.Morgan Page 30 of 30 Confidential Treatment Requested by JPMorgan JPM-SDNY-00047963 Chase CONFIDENTIAL SDNY_GM_00317161 EFTA01520638