EFTA01176734.pdf

May 2012 J.E.'s Client Investment products: Not FDIC insured • No bank guarantee • May lose value Please see important information at the end of this presentation. J.P.Morgan EFTA01176734 J.E.'s client Parents (2%) A Art and Managing investment Member LLC portfolio Units (2%) Non-managing LLC V units (49%) Grantor or Irrevocable < Trust - Child Installment note* #1 (49%) FMV Lease > LLC Parents Investment Art Partnership Non-managing LLC units (49%) ,s Grantor - Irrevocable ..' Trust - Child Installment note* #2 (49%) * FLP distributions of lease payments and investment portfolio to irrevocable trusts amortize installment note J.P.Morgan 1 EFTA01176735 Important information IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates In discussion of options and other strategies, results and risks are based solely on do not provide tax advice. Accordingly, any discussion of U.S. tax hypothetical examples cited; actual results and risks will vary depending on specific matters contained herein (including any attachments) is not intended circumstances. Investors are urged to consider carefully whether option or option- related products in general, as well as the products or strategies discussed herein or written to be used, and cannot be used, in connection with the are suitable to their needs. In actual transactions, the client's counterparty for OTC promotion, marketing or recommendation by anyone unaffiliated with derivatives applications is JPMorgan Chase Bank, N.A., London branch. For a copy JPMorgan Chase & Co. of any of the matters addressed herein or for of the "Characteristics and Risks of Standardized Options" booklet, please contact the purpose of avoiding U.S. tax-related penalties. your J.P. Morgan Advisor. Each recipient of this presentation, and each agent thereof, may disclose to any Real estate, hedge funds, and other private investments may not be suitable for all person, without limitation, the U.S. income and franchise tax treatment and tax individual investors, may present significant risks, and may be sold or redeemed at structure of the transactions described herein and may disclose all materials of more or less than the original amount invested. Private investments are offered any kind (including opinions or other tax analyses) provided to each recipient only by offering memoranda, which more fully describe the possible risks. There insofar as the materials relate to a U.S. income or franchise tax strategy are no assurances that the stated investment objectives of any investment product provided to such recipient by JPMorgan Chase & Co. and its subsidiaries. will be met. Hedge funds (or funds of hedge funds): often engage in leveraging Bank products and services are offered by JPMorgan Chase Bank, N.A. and its and other speculative investment practices that may increase the risk of investment affiliates. Securities products and services are offered by J.P. Morgan Securities loss; can be highly illiquid; are not required to provide periodic pricing or valuation LLC, member NYSE, FINRA and SIPC. information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory This material is not intended as an offer or solicitation for the purchase or sale requirements as mutual funds; and often charge high fees. Further, any number of of any financial instrument J.P. Morgan Securities LLC or its brokerage affiliates conflicts of interest may exist in the context of the management and/or operation may hold a position or act as market maker in the financial instruments of any of any hedge fund. Structured products involve derivatives. The investment issuer discussed herein or act as an underwriter, placement agent, advisor or decision is yours but you should not invest in any structured product unless you lender to such issuer. The views and strategies described herein may not be fully understand and are willing to assume the risks associated with it. suitable for all investors. The discussion of loans or other extensions of credit in this material is for illustrative purposes only. No commitment to lend by J.P. JPMorgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an Morgan should be construed or implied. This material is distributed with the affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees understanding that we are not rendering accounting, legal or tax advice. Estate for providing various services to the funds. Call JPMorgan Distribution Services at 1- planning requires legal assistance. You should consult with your independent 800-4804111 or visit www.jpmorganfunds.com for the prospectus. Investors should advisors concerning such matters. carefully consider the investment objectives, risks, charges and expenses of the mutual funds before investing. The prospectus contains this and other information We believe the information contained in this material to be reliable but do not about the mutual fund and should be read carefully before investing. warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based As applicable, portions of mutual fund performance information may be provided on current market conditions and are subject to change without notice. This by Upper, a Reuters company, subject to the following: C 2012 Reuters. All rights material should not be regarded as research or a J.P. Morgan research report. reserved. Any copying, republication or redistribution of Upper content, including Opinions expressed herein may differ from the opinions expressed by other by caching, framing or similar means, is expressly prohibited without the prior areas of J.P. Morgan, including research. The investment strategies and views written consent of Upper. Upper shall not be liable for any errors or delays in the stated here may differ from those expressed for other purposes or in other content or for any actions taken in reliance thereon. contexts by other J.P. Morgan market strategists. Past performance is no guarantee of future result. J.P. Morgan Securities LLC may act as a market maker in markets relevant to Additional information is available upon request. structured products or option products and may engage in hedging or other operations in such markets relevant to its structured products or options C> 2012 1P11,4organ Chase & Co. exposures. Structured products and options are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other governmental agency. J.P.Morgan 2 EFTA01176736