JPMorgan Equity Income Managed Account
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4Q 2022 JPMorgan Equity Income Managed Account
Table of contents
Capabilities
Equity Income
● Expertise
● Portfolio
● Results
Appendix
2Capabilities 3
Equities assets under management
As of December 31, 2022, J.P. Morgan Asset Management’s Equity teams manage USD 678 billion
Equities U.S. Equity
USD 678bn total assets under management USD 439bn total assets under management
USD 112bn
16% $103bn $99bn
23% 23%
USD 127bn
19%
USD 439bn
65% $86bn
20%
$147bn
$4bn 32%
U.S. Equity 1%
Emerging Markets & Asia Pacific Equity Core Value Security Capital Structured Growth
International Equity Group
Source: J.P. Morgan Asset Management. Data includes internal Fund of Funds and joint ventures.
4Expertise 5
An experienced team dedicated to value
The team also leverages the insights of the J.P. Morgan Equity organization, which includes over 20 research analysts
in the U.S. and over 200 analysts globally
Lee Spelman Don San Jose
Managing Director Managing Director
Head of U.S. Equity CIO Value Team
Experience: 47/34 Experience: 26/23
Equity Income Team
Clare Hart Andrew Brandon David Silberman
Managing Director Managing Director Managing Director
Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
Experience: 30/23 Experience: 25/23 Experience: 34/34
Lerone Vincent Tony Lee
Managing Director Vice President
Research Analyst Research Analyst
Experience: 25/25 Experience: 11/11
Investment Specialist Team
Jaime Steinhardt Jenna Silver Rory Houser
Executive Director Vice President Associate
Experience: 13/13 Experience: 11/11 Experience: 8/8
As of December 2022.
6A team of skilled research analysts with an average of 21 years of experience
David Small Danielle Hines
Managing Director Executive Director
Director of U.S. Research Associate Director of U.S. Research
Experience: 22 / 17 Experience: 14 / 14
Consumer Healthcare
Bartjan
Lisa S. Sadioglu Greg Fowlkes Ryan Vineyard van Hulten Li Boynton
Managing Director Managing Director Managing Director Executive Director Vice President
Consumer Cyclicals Retail Consumer Staples Pharma / Biotech Pharma / Biotech
Experience: 22 / 22 Experience: 23 / 17 Experience: 17 / 10 Experience: 27 / 4 Experience: 9 / 5
Financials REITs
Steven Wharton Brent Gdula David Chan Jason Ko Nick Turchetta
Managing Director Executive Director Executive Director Executive Director Vice President
Banks & Insurance Payments / REITs REITs
Capital Markets Experience: 14 / 14 Business Services Experience: 20 / 20 Experience: 12 / 2
Experience: 27 / 16 Experience: 15 / 4
Telecom, Media & Technology
Nitin
Robert Bowman Eric Cheung Kris Erickson Ryan Vineyard
Bhambhani
Managing Director Managing Director Executive Director Managing Director Managing Director
Semis & Hardware Software and Svcs Software and Svcs Media Telecom & Cable
Experience: 30 / 30 Experience: 29 / 26 Experience: 18 / 1 Experience: 21 / 9 Experience: 17 / 10
Industrials
David
Maccarrone Aga Zmigrodzka Teresa Kim Chris Ceraso Joanna Shatney Andrew Brill
Managing Director Vice President Managing Director Executive Director Executive Director Vice President
Energy/Infrastructure Energy/Infrastructure Utilities Autos and Transport Industrial Cyclicals Industrial Cyclicals
Experience: 28 / 13 Experience: 13 / 2 Experience: 24 / 1 Experience: 22 / 9 Experience: 27 / 8 Experience: 20 / 6
Research Analysts Include VP’s and above. As of December 2022. Years of experience: Industry / Firm.
7Portfolio 8
Investment philosophy
“Our bottom-up fundamental philosophy targets high quality U.S. companies
with attractive valuations and healthy dividend yields.”
1. Quality 2. Valuation 3. Dividend
We focus on quality first: Valuation is critical: Dividend yields:
● Companies with durable franchises ● Quantitative and qualitative judgements ● Enhance total return
● Consistent earnings ● Potential vs. current market value ● Generate income
● Strong management teams ● Modest payout ratio indicates a
disciplined use of capital
Our approach leads to a portfolio that has historically
shown less volatility than the market with less exposure to the downside
For illustrative purposes only. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met. See glossary of investment terms.
9Bottom-up fundamental philosophy
Targeting high quality U.S. companies with attractive valuations and healthy dividend yields
Idea Fundamental Valuation Portfolio
generation analysis analysis construction
Narrow the investment Assess the quality of Valuation is critical to Constructed from the
universe via the company by entry & exit points bottom-up
● Analyst research analyzing ● Metrics are tailored to ● Portfolio of 85-110 names with a
● Business factors each stock: maximum stock weighting of 5%
● Company meetings
at time of initiation
– Low cyclicality – Free cash flow yield
● Industry conferences
● Minimum 2% dividend yield at
– High barriers to entry – P/E1
time of initiation
– Brand leadership – EV/EBITDA2
● Industry group constraints of
and strength benchmark weight +/-10%
Management factors ● Position sizes are
– Disciplined use of determined by:
capital – Strength of conviction
Financial factors – Risk / reward opportunity
Sell discipline:
– Sustainable cash flow – Portfolio considerations
● Overvaluation by the market
– Strong balance sheet of diversification
● Displacement by a better idea
– Steady pattern of ● Company fundamentals have
earnings changed
For illustrative purposes only. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
1 Price/Earnings 2 Enterprise value/Earnings before interest, taxes, depreciation, and amortization. See glossary of investment terms.
10Equity Income has top decile performance coupled with bottom decile volatility
JPMorgan Equity Income Strategy as of December 31, 2022
Standard deviation since inception* Batting average since inception***
Lower volatility:
8th percentile standard deviation 60% Alpha consistency:
15.5% 15.4% 1st percentile batting average
13.3%
52%
JPMorgan Equity Income eVestment LCV Median Russell 1000 Value Index
Strategy J.P. Morgan Equity Income Strategy eVestment LCV Median
Down capture potential since inception** Performance
96% Better Performance Equity Income Russell 1000 Value Index
Attractive potential downside protection 9th percentile returns
11th percentile downside capture 10.8%
8.6%
81%
-5.6% -6.6%
-7.7%
-11.3%
J.P. Morgan Equity Income Strategy eVestment LCV Median Down Quarter Down Year Since Inception
Source: J.P. Morgan Asset Management, eVestment. *Inception: 11/30/2002. Supplemental to standardized performance. Past performance is no guarantee of future results.
Risk is measured by standard deviation – a gauge of the variance of a manager's return over its average or mean. ** Down capture measures performance of the manager relative to the index in down markets. ***
Consistency is measured by batting average – calculated by dividing the number of months in which the manager beats or matches the index by the total number of months in the period.
Sourced from eVestment Alliance as of 12/31/2022. Statistics are computed using monthly data. The eVestment ranking is a percentile ranking based on the strategy’s annualized return (gross of fees). Equity Income
was ranked against the following number of institutional products in the eVestment Large Cap Value, for the since inception excess return (9th percentile / 189 observations); Standard Deviation (8th percentile / 189
observations), and information ratio (5th percentile / 189 observation ).
Ranking are calculated based on total returns. See glossary of investment terms.
11Sector positions
JPMorgan Equity Income Portfolio as of December 31, 2022 Benchmark Russell 1000 Value Index
Absolute sector & relative weightings (%)
25
20.4
20 19.0
15 14.0
9.6
10 9.2
8.0
6.9
4.7
5 3.7
2.4 2.1
0
Financials Health Care Industrials Consumer Energy Information Consumer Utilities Materials Communication Real
Staples Technology Discretionary Services Estate
Relative
0.3 1.7 3.4 2.2 0.8 -0.3 0.9 -1.1 -0.6 -4.9 -2.3
Positioning (%)1
Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). For illustrative purposes only. 1Reflects relative position to the benchmark Russell 1000 Value Index. The
Portfolio is an actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. See glossary of investment
terms.
12Financials: Opportunities to add value in different rate environments
JPMorgan Equity Income Portfolio as of December 31, 2022
1.3%
1.3% 4.6% Diversified Banks
Insurance
20.4% 1.8% Investment Banking & Brokerage
Asset Management & Custody Banks
Regional Banks
Current
Consumer Finance
Financials Weight 1.9%
Financial Exchanges & Data
4.0%
Portfolio diversification Insurance Brokers
across sub-sector
2.7%
2.8%
Source: J.P. Morgan Asset Management, Wilshire Atlas (excludes cash). See glossary of investment terms.
13Stock positioning
JPMorgan Equity Income Portfolio as of December 31, 2022
Portfolio Dividend Portfolio Benchmark Relative
Top 10 holdings Top 5 overweights
Weight (%) Yield (%) weight (%) weight (%) position (%)1
Exxon Mobil 3.10 3.30 UnitedHealth 2.72 0.24 2.48
ConocoPhillips 3.08 1.73 ConocoPhillips 3.08 0.80 2.28
UnitedHealth 2.72 1.24 AbbVie 1.92 0.00 1.92
Air Products & Chemicals 2.21 0.37 1.83
Bristol-Myers Squibb 2.61 3.17
Bristol-Myers Squibb 2.61 0.84 1.78
Raytheon Technologies 2.58 2.18
Air Products & Chemicals 2.21 2.10 Portfolio Benchmark Relative
Top 5 underweights
weight (%) weight (%) position (%)1
Johnson & Johnson 2.06 2.56
Berkshire Hathaway 0.00 3.04 -3.04
Philip Morris 1.98 5.02 JPMorgan Chase & Co2 0.00 2.13 -2.13
General Dynamics 1.97 2.03 Meta 0.00 1.16 -1.16
AbbVie 1.92 3.66 Cisco Systems 0.00 1.07 -1.07
Total 24.23 Thermo Fisher Scientific 0.00 1.03 -1.03
1Reflectsrelative position to the Russell 1000 Value Index. 2Due to regulatory reasons, the portfolio is unable to hold JPMorgan Chase & Co.
Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). Holdings and allocations are subject to change at the discretion of the Investment Manager
without notice. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell. For illustrative purposes only. See glossary of investment terms.
14Portfolio characteristics
JPMorgan Equity Income Portfolio as of December 31, 2022 Benchmark Russell 1000 Value Index
Portfolio Portfolio Benchmark
BARRA tilts relative to benchmark
P/E Ratio1 14.7x 14.6x Size 0.26
Profitability 0.23
EPS Growth2 11.8% 9.4% Dividend Yield 0.20
Earnings Quality 0.13
Average Market Cap3 $176.7 B $151.4 B Momentum 0.13
Growth 0.00
Number of Holdings 85 840
Leverage -0.02
Current Dividend Yield 2.7% 2.3% Earnings Yield -0.03
Beta -0.18
Dividend Growth4 14.2% 11.0% Value -0.23
Active Share 64.3% N/A
ROE4 23.8% 17.1% Market capitalization weightings3
ROIC4 13.2% 10.8%
Portfolio Benchmark
94%
5
Standard Deviation 17.3% 18.9% 78%
Turnover5,6 17.1% N/A
Tracking Error5 2.82 N/A 13%
5% 1% 7% 2%
0%
5
Beta 0.91 1.00
> $25 B $10 B - $25 B $5 B - $ 10 B < $5 B
Source: J.P. Morgan Asset Management, Frank Russell Company, Bloomberg, BARRA, Wilshire Atlas (excludes cash). The above characteristics are shown for illustrative purposes only, and are subject to
change without notice. Representative the current portfolio holdings. However, it cannot be assumed that these types of investments will be available to or will be selected by the portfolio in the future.
1First Call 12 month forward estimate. 2First Call Growth 1-5 year forward estimate. 3USD. 4Trailing 12 months. 5Trailing 5 years (Annualized). 6As of 11/30/2022. See glossary of investment terms.
15Portfolio activity: 4Q 2022
JPMorgan Equity Income Portfolio as of December 31, 2022
Top buys1 Top sells1
US Bancorp PNC Financial Services
Dominion Energy ConocoPhillips
Lam Research* UnitedHealth
United Parcel Service AmerisourceBergen
AbbVie Citigroup
Source: J.P. Morgan Asset Management
1 Based on change in position size
*Was either initiated or eliminated during the quarter.
Holdings and allocations are subject to change at the discretion of the Investment Manager without notice. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be
interpreted as a recommendation to buy or sell. The Portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager
without notice. See glossary of investment terms.
16Results 17
Performance
JPMorgan Equity Income SMA Composite as of December 31, 2022
Market value As of 12/2022
Equity Income Strategy $77,716 mm
Since
Annualized performance (%) 4Q 2022 1 year 3 years 5 years 10 years Inception
(11/30/2002)
Equity Income SMA Composite (Gross) 13.03 -1.23 9.13 9.69 12.54 10.83
Equity Income SMA Composite
12.17 -4.19 5.86 6.39 9.17 7.51
(Net of max. allowable fees – 300bps)*
Russell 1000 Value Index 12.42 -7.53 5.96 6.67 10.29 8.55
Excess Returns (Gross) 0.61 6.30 3.17 3.02 2.25 2.28
Calendar year performance (%) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Equity Income SMA Composite (Gross) 19.31 9.08 14.22 32.13 14.60 -1.14 15.94 18.29 -4.00 27.24 4.20 26.25 -1.23
Equity Income SMA Composite
15.91 5.90 10.94 28.47 11.31 -4.08 12.62 14.93 -6.88 23.42 1.10 22.46 -4.19
(Net of max. allowable fees – 300bps)*
Russell 1000 Value Index 15.51 0.39 17.51 32.53 13.45 -3.83 17.34 13.66 -8.27 26.54 2.80 25.16 -7.53
Excess Returns (Gross) 3.80 8.69 -3.29 -0.40 1.15 2.69 -1.40 4.63 4.27 0.70 1.40 1.09 6.30
The performance quoted is past performance and is not a guarantee of future results. Performance includes the reinvestment of income.
Source: J.P. Morgan Asset Management. Please see disclosure page for index definitions. *Please note, actual fees associated with this strategy may be lower. 1Preliminary
Please note, the “net of fee” composite performance returns is calculated using a model investment management fee. It is based on a representative fee applicable to institutional clients looking to invest in the strategy
and it is higher or equal to the weighted average investment management fee of the underlying accounts within the composite at year end. Actual fees may be lower based on assets under management and other
factors. Where fees are lower, “net of fees” performance returns will be higher. As such, “net of fees” performance for actual accounts may differ significantly from the “net of fees” performance shown above. Fees are
described in Part II of the Advisor’s ADV which is available upon request. Please see back page for additional disclosure. The Russell 1000 Value Index is an unmanaged index measuring the performance of those
Russell 1000 companies with lower price- to-book ratios and lower forecasted growth values. The returns are total returns and include the reinvestment of dividends. An individual cannot invest directly in an index.
The index is unmanaged. Please see glossary of investment terms.
18Performance attribution – 4Q 2022
Benchmark Russell 1000 Value Index
JPMorgan Equity Income Portfolio as of December 31, 2022
Stock: -0.13% | Sector: 1.21%
Ending Stock Impact Ending Stock Impact
Top contributors Top detractors
weight (%) return (%) (%) weight (%) return (%) (%)
Air Products & Chemicals 2.21 33.15 0.52 JPMorgan Chase & Co* 0.00 29.49 -0.54
TJX Companies 1.64 28.68 0.42 Berkshire Hathaway* 0.00 15.68 -0.46
ConocoPhillips 3.08 16.44 0.40 Cisco Systems* 0.00 20.18 -0.20
Raytheon Technologies 2.58 24.00 0.39 Gilead Sciences* 0.00 40.31 -0.19
AbbVie 1.92 21.60 0.37 Boeing* 0.00 57.33 -0.16
Note: Stock attribution reflects net contribution vs. benchmark. Stock return displayed for whole period.
Sector attribution (%)
Stock Selection Sector Allocation
0.6%
0.3% 0.3% 0.3% 0.2% 0.2% 0.2%
0.1% 0.1%
0.0% 0.1% 0.1% 0.0%
0.0% 0.0% 0.0% 0.0%
-0.1% -0.1% -0.1%
-0.5% -0.5%
Communication Information Consumer Consumer Real Estate Materials Industrials Energy Utilities Financials Health Care
Services Technology Discretionary Staples
Past performance is no guarantee of future results. Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). The securities highlighted above
have been selected based on their significance and are shown for illustrative purposes only. They are not recommendations. The portfolio is an actively managed. Holdings, sector weights,
allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. *Underweight relative to benchmark. Due to regulatory reasons, the
portfolio is unable to hold JPMorgan Chase & Co. Gross of fees. See glossary of investment terms.
19Performance attribution – 2022
Benchmark Russell 1000 Value Index
JPMorgan Equity Income Portfolio as of December 31, 2022
Stock: 3.84% | Sector: 2.42%
Average Stock Impact Average Stock Impact
Top contributors Top detractors
weight (%) return (%) (%) weight (%) return (%) (%)
ConocoPhillips 2.98 71.45 1.23 Home Depot 1.42 -21.98 -0.44
EOG Resources 1.87 56.89 0.72 Microsoft 1.22 -28.02 -0.42
Walt Disney* 0.00 -43.91 0.56 PPG Industries 1.41 -25.69 -0.39
Intel* 0.03 -46.65 0.45 Dover 1.45 -24.35 -0.39
Meta Platforms* 0.00 -64.22 0.45 Seagate Technology 0.56 -51.41 -0.38
Note: Stock attribution reflects net contribution vs. benchmark. Stock return displayed for whole period.
Sector attribution (%)
1.3% 1.3% 1.4% Stock Selection Sector Allocation
1.2%
0.6% 0.5% 0.5%
0.2% 0.3% 0.2% 0.2%
0.1% 0.0%
0.0% -0.1% 0.0% 0.0% -0.1% 0.0%
-0.2% -0.3%
-0.6%
Information Health Care Industrials Communication Energy Consumer Consumer Real Estate Materials Utilities Financials
Technology Services Staples Discretionary
Past performance is no guarantee of future results. Source: J.P. Morgan Asset Management, Frank Russell Company, Wilshire Atlas (excludes cash). The securities highlighted above
have been selected based on their significance and are shown for illustrative purposes only. They are not recommendations. The portfolio is an actively managed. Holdings, sector weights,
allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice. *Underweight relative to benchmark. Due to regulatory reasons, the
portfolio is unable to hold JPMorgan Chase & Co. Gross of fees. See glossary of investment terms.
20Executive summary
JPMorgan Equity Income Strategy as of December 31, 2022
Expertise Portfolio Results
Experienced team coupled with Bottom-up stock selection Our investment approach has
proprietary insights from our targeting high quality U.S. delivered strong and consistent
seasoned research group companies at attractive valuations risk-adjusted returns over time
● Experienced investment team with lead ● Targets quality companies with ● Has generated top decile performance
PM Clare Hart managing the Strategy consistent earnings, strong and bottom decile volatility since lead
since inception.* management teams and a dividend portfolio manager change*
yield of 2% or more
● Supported by two co-PMs and two ● Attractive combination of performance
dedicated analysts ● Fundamental bottom-up approach and less exposure to the downside
to stock selection that is not
● Leveraging the fundamental insights of ● Dividend yield enhances the portfolio’s
benchmark driven
a team of over 20 U.S. Equity career total return
analysts averaging over 20 years of ● Fully invested with cashAppendix 22
Dividends have been an important contributor to total returns over time
As of December 31, 2022
Total Return Decomposition – Ibbotson Associates SBBI U.S. Large Company Stocks Index
25%
Dividends Capital Appreciation
20%
15%
13.9% 13.6%
10% 12.6% 15.3%
3.0% 11.6%
6.1%
5% 4.4% 1.6% 5.9%
4.7% 5.4% 6.0% 5.1%
3.3% 4.2% 4.4% 3.8%
2.5% 1.8% 2.1% 1.7%
0%
-2.7%
-5.3%
-5%
-10%
1927-1929 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s 1927 -
Present
Past performance is not a guarantee for future results. Source: Morningstar. Shown for illustrative purposes only. There is no guarantee that companies will declare, continue to pay or increase dividends.
See glossary of investment terms.
23Dividend sustainability is critical
Dividend Yield and Dividend Growth Rate of Equity Income vs Russell 1000 Value Index – Trailing Twelve Months
Higher dividend yield Consistent dividend growth More dividend increases
Gross Dividend Yield Trailing 12 Month Dividend Growth Trailing 12 Month Dividend Increase**
3.5% 100.0%
92%
20.0% 90.0%
3.0%
2.7%
80.0%
2.5% 2.3% 70.0%
15.0% 14.2%
60.0%
2.0% 54%
11.0%
50.0%
10.0%
1.5%
40.0%
1.0% 30.0%
5.0%
20.0%
0.5%
10.0%
0.0% 0.0% 0.0%
Equity Income Russell 1000 Value Equity Income Russell 1000 Value Equity Income Russell 1000 Value
Index Index Index
Source: J.P. Morgan Asset Management, Factset. As of December 31, 2022. Dividend yield is calculated by taking the sum-total dividend yield of each stock held in the portfolio. The dividend yield for each
stock is the most recent dividend payout annualised and divided by the share price. Dividend growth calculates the annualized average rate of increase in the dividends paid by stock held in the portfolio.
**Refer to dividend increase during the time period as a percentage of holdings. ***Refer to dividend cuts and suspensions during the time period as a percentage of holdings. The Equity Income Portfolio and
the Russell 1000 Value Index dividend yield and dividend growth rates are calculated in the same manner. For illustrative purposes only. Yield is not guaranteed and may change over time. See glossary of
investment terms.
24A long track record of consistent outperformance
JPMorgan Equity Income Portfolio as of December 31, 2022
JPMorgan Equity Income Strategy: 5 Year and 10 Year Rolling1 Excess Returns vs. Russell 1000 Value Index
6%
5 Year Rolling Excess Return 10 Year Rolling Excess Return
5%
Equity Income has outperformed:
94% of rolling 5-year periods
100% of rolling 10-year periods
4%
3%
2%
1%
0%
-1%
Nov-07
Nov-08
Nov-09
Nov-10
Nov-11
Nov-12
Nov-13
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
Nov-22
May-08
May-09
May-10
May-11
May-12
May-13
May-14
May-15
May-16
May-17
May-18
May-19
May-20
May-21
May-22
Past performance is no guarantee of future results. Excess returns are against the Russell 1000 Value Index. Indices do not include fees or operating expenses and
are not available for actual investment. 1Rolling excess returns since PM inception: 11/30/2002 for the J.P. Morgan Equity Income composite (Gross of Fees). See glossary of investment terms.
25Investment team biographies
Clare Hart Tony D. Lee
Managing Director Vice President
Is a portfolio manager in the U.S. Equity Group. An employee since 1999, Clare is the lead Is an investment analyst on the JPMorgan Equity Income and U.S. Value Funds within the U.S.
portfolio manager of the JPMorgan Equity Income Fund and the JPMorgan U.S. Value Fund. Prior Equity Group. An employee since 2012, Tony is a generalist analyst who covers multiple sectors.
to joining the team, Clare was with Salomon Smith Barney’s equity research division as a research Prior to joining the team in 2018, Tony was a member of our U.S. Equity Research team covering
associate covering Real Estate Investment Trusts. She began her career at Arthur Andersen, healthcare and insurance industries. Tony holds B.S. in Hotel Administration with concentrations
working as a public accountant while earning both an M.S.A. from DePaul University and a in Real Estate and Finance from Cornell University. He is a CFA charterholder.
C.P.A. granted by the State of Illinois. Clare also holds a B.A. in political science from the
University of Chicago.
Andrew Brandon
Managing Director
Is a portfolio manager in on the JPMorgan Equity Income and the JPMorgan U.S. Value Funds
within the U.S. Equity Group. An employee since 2000, Andrew joined the investment team in
2012 as an investment analyst on the JPMorgan Equity Income and Growth and Income Funds.
Prior to joining the team, Andrew was a member of our US equity research team covering the
financial industry. Andrew has also worked in the JPMorgan Private Bank supporting portfolio
managers of both the U.S. large cap core equity product, and the U.S. large cap value product.
Andrew obtained a B.A. in economics from the University of Virginia, and an M.B.A. from the
University of Florida. He is a CFA charterholder.
David Silberman
Managing Director
Is a portfolio manager on the JPMorgan Equity Income and the JPMorgan U.S. Value Funds within
the U.S. Equity Group. An employee since 1989, David assumed his current role in 2019.
Previously, David was the Head of the Equity Investment Director and Corporate Governance
teams globally and the lead U.S. Equity Investment Director since 2008. Before that, he was a
portfolio manager in the U.S. Equity Group where he managed equity portfolios for private clients,
endowments and foundations. He has also worked in the Emerging Markets Derivatives Group
and attended the J.P. Morgan training program. David holds a B.A. in economics and political
science from the State University of New York at Binghamton and an M.B.A. from the Stern School
of Business at New York University.
Charles “Lerone” Vincent
Managing Director
is a research analyst on the JPMorgan Equity Income and U.S. Value Funds within the U.S. Equity
Group. Previously, he was a research analyst on the U.S. Equity Core team focusing on large and
mid-cap basic materials companies. An employee since 1998, Lerone served as an analyst on
the Mid-Cap Value team focusing on industrials, technology, utilities and basic materials
companies. Prior to this, he served as a generalist on the Tax Aware Large Cap Core Strategy,
before that, Lerone was a research assistant covering the technology and telecom sectors, and
before that, he was an associate and analyst in the Diversified Industries and Consumer Products
group at the firm's Investment Bank. Lerone holds a B.S.M. from Tulane University and is a CFA
charterholder.
26Investment team biographies
Don San Jose
Managing Director
Is the Chief Investment Officer of the U.S. Value Team and a portfolio manager within the U.S.
Equity Group. An employee since 2000, Don is responsible for managing the J.P. Morgan Small
Cap Active Core and SMID Cap Core Strategies. Prior to joining the Small Cap Team, Don was an
analyst in the JPMorgan Securities' equity research department covering capital goods
companies. Prior to joining the firm, Don was an equity research associate at ING Baring
Furman Selz. Don holds a B.S. in Finance from The Wharton School of the University of
Pennsylvania. He is a member of both the New York Society of Security Analysts and The CFA
Institute, and a CFA charterholder.
Jaime H. Steinhardt
Executive Director
Is an investment specialist within the U.S. Equity Group. An employee since 2012, Jaime is the
head of the investment specialist team that is responsible for communicating investment
performance, outlook, and strategy positioning to institutional and funds clients for the firm’s U.S.
Equity Value platform. She holds a B.A. in economics from Georgetown University and holds the
Series 7 and 63 licenses. She is a member of both the New York Society of Security Analysts and
the CFA Institute, and a CFA charterholder.
Jenna B. Silver
Vice President
Is an investment specialist in the U.S. Equity Group. An employee since 2013, Jenna is
responsible for communicating investment performance, outlook, and strategy positioning to
institutional and funds clients for the firm’s U.S. Equity Value platform. Jenna previously worked in
Asset Management's Product Strategy team, focusing on the fixed income landscape, industry
trends, product development, and competitive positioning. Jenna holds a B.B.A. in Finance and
Strategy from the University of Michigan, Stephen M. Ross School of Business. She also holds the
Series 7 and 63 licenses and is a CFA charterholder.
Rory T. Houser
Associate
is an investment specialist within the U.S. Equity Group. An employee since 2015, Rory is
responsible for communicating investment performance, outlook, and strategy positioning to
institutional and funds clients for the firm’s U.S. Equity Value platform. He started his career
working in J.P. Morgan’s Private Bank, partnering with family offices, endowments, and
foundations to develop investment strategies and identify the opportunities that shape their
portfolios and long-term investment goals. Rory holds a B.S. in finance and entrepreneurship from
the University of the Dayton, and holds the Series 7 and 63 licenses. He is a CFA charterholder.
27Equity Income Managed Accounts Composite December 31, 2021 Publication date: 10/10/2022 28
Glossary of Investment Terms
Active Share - a measure of the percentage Free cash flow yield - a financial solvency ratio that Turnover Ratio - Percentage of holdings in a mutual
of stock holdings in a manager's portfolio that differs compares the free cash flow per share a company is fund that are sold in a specified period.
from the benchmark index. expected to earn against its market value per share.
Up-Market Capture – a statistical measure of an
The ratio is calculated by taking the free cash flow per
Alpha - The amount of return expected from an investment manager's overall performance in up-
share divided by the current share price.
investment from its inherent value. markets.
Fundamental analysis - attempts to measure a
Information ratio (IR) – A ratio of portfolio returns Valuation - An estimate of the value or worth of a
security's intrinsic value by examining related
above the returns of a benchmark to the volatility of company; the price investors assign to an individual
economic and financial factors including the balance
those returns. stock.
sheet, strategic initiatives, microeconomic indicators,
Bottom-up investing - an investment approach that and consumer behavior. Value investing - A strategy whereby investors
focuses on the analysis of individual stocks and de- purchase equity securities that they believe are selling
Growth investing - Investment strategy that focuses
emphasizes the significance of macroeconomic cycles below estimated true value. The investor can profit by
on stocks of companies and stock funds where
and market cycles. buying these securities then selling them once they
earnings are growing rapidly and are expected to
appreciate to their real value.
Barra Risk Factor Analysis – A multi-factor model, continue growing.
created by Barra Inc., used to measure the overall risk Weighted Average Market Capitalization - Most
Large-cap - The market capitalization of the stocks of
associated with a security relative to market indexes are constructed by weighting the market
companies with market values greater than $10 billion.
performance. The model incorporates >40 data capitalization of each stock on the index. In such an
metrics and measures risk factors via three main Mid-cap - The market capitalization of the stocks of index, larger companies account for a greater portion
components: industry risk, company-specific risk and companies with market values between $3 to $10 of the index. An example is the S&P 500 Index.
risks from exposure to investment themes. billion.
Beta - A measurement of volatility where 1 is neutral; Performance attribution - a set of techniques that
above 1 is more volatile; and less than 1 is less performance analysts use to explain why a portfolio's
volatile. performance differed from the benchmark.
Down-Market Capture - a statistical measure of an Price/Earnings (P/E) 12-month forward - price of a
investment manager's overall performance in down- stock divided by its projected earnings for the coming
markets. year.
Earnings Per Share (EPS) - The portion of a Small-cap - The market capitalization of the stocks of
company's profit allocated to each outstanding share companies with market values less than $3 billion.
of common stock. EPS serves as an indicator of a
Tracking Error (TE) - The active risk of the portfolio.
company's profitability.
It determines the annualized standard deviation of the
Excess Return (ER) – portfolio returns achieved excess returns between the portfolio and the
above and beyond the return of its benchmark. benchmark.
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