Risk Leadership in Fund Morningstar Overall RatingsTM Management, Asia 4) 1 2 3 4 5 JPM US Aggregate Bond JPM share class of JPMorgan Funds April 2010 Fund objective • The fund invests in US fixed income instruments and is exposed to interest rate and To achieve a return in excess of US bond markets by credit risk. investing primarily in US fixed and floating rate debt • Investors may be subject to substantial losses. securities. • Before you decide to invest, make sure the intermediary has explained to you that the fund is suitable to you. Please refer to the offering document(s) for details. Performance from 15.09.00 to 31.03.10 Fund Manager's report 180 80 JPM US Aggregate Portfolio Review: Economic growth in the US economy Bond A (inc) is recovering, evidenced by two quarters of positive GDP 160 60 growth and modest improvement in employment. Over Barclays Capital the last quarter, income growth was positive, firms US Aggregate Total continued to bring inventories in line with projected 140 40 % CHANGE Index REBASED sales, and household net wealth stabilized. However, economic growth is still being spurred by significant fiscal 120 20 support. Outlook: Spread sectors continued to outpace 100 0 Treasuries in March, and our overweight to spread product was positive on performance. Our allocation to 80 -20 mortgages generally outperformed the pass-through only 00 01 02 03 04 05 06 07 08 09 10 index (Barclays), driven by security selection within the sector. CMBS finished the month as the best performing sector in the index (Barclays), and our underweight was a Cumulative performance % slight negative to performance. Corporate bonds also 1 month 1 year 3 years 5 years Since launch continued their rally, and our underweight was a slight Fund +0.0 +9.4 +21.0 +30.2 +65.9 detractor; which was offset by our allocation to other Benchmark -0.1 +7.7 +19.6 +30.3 +76.7 spread sectors. Calendar Year performance % 2005 2006 2007 2008 2009 2010YTD Fund +2.2 +3.4 +5.5 +4.6 +9.1 +1.9 Benchmark +2.6 +4.3 +6.6 +5.6 +5.9 +1.8 Portfolio information Fund manager Douglas Swanson, USA Launch date1) 15.09.00 Portfolio analysis Fund size (m) USD 690.4 0.2% Non-Corporate Credit 0.5% Agency Base currency and NAV per share USD 12.44 0.8% Net Liquidity 12 month High USD 12.49 (08.02.10) 1.5% Asset Backed Securities NAV: Low USD 11.82 (07.04.09) 1.6% CMBS 15.6% Corporate (Investment Grade) Charges: Initial# 3.0% of NAV 27.0% Treasuries/Futures Redemption Currently 0% 52.8% Mortgage (Prepay Sensitive) (up to 0.5% of NAV) Management fee 0.9% p.a. Last dividend value (xd date) USD 0.53 (02.09.09) Fund Yield2) 4.26% SEDOL/ISIN codes 4379438/LU0117838564 Top ﬁve holdings (as at end February 2010) Bloomberg code FLEUDBI LX Holding % Portfolio characteristics US Treasury 8.88% 15/08/17 4.0 US Treasury 7.5% 15/11/16 1.7 Bond quality AAA: 79.3% / AA: 5.4% / A: 8.2% US Treasury 0% 15/08/16 1.6 BBB: 4.7% / <BBB: 1.7% US Treasury 0% 15/11/16 1.4 Average: duration/maturity 4.7 years / 5.6 years US Treasury 7.25% 15/05/16 0.8 Yield to maturity 4.40% Statistical analysis For more information, please contact your bank, financial adviser or visit Since www.jpmorganam.com.hk 3 years 5 years launch3) Correlation 0.90 0.90 0.93 Unless stated otherwise, all information as at the last valuation date of the previous month. Source: JFAM/JPMAM/Barclays Capital (NAV to NAV in USD with income Alpha % 0.10 0.06 -0.02 reinvested). Source of star rating: Morningstar, Inc. Risk ratings (if any) are based on JPMAM's assessment of relative risk by asset class and is subject to change. This is for reference only. The time difference between fund NAV calculation and US market closing can distort the Fund's relative performance. Any overweight in Beta 0.86 0.87 0.93 198 any investment holding exceeding the limit set out in the Investment Restrictions was due to market movements and will be rectified shortly. 1)Available for purchase in Hong Kong on 20.04.09. 2)Fund yield is defined as the total amount of fund distribution per share made over the previous 12 months divided by the Annual volatility % 3.98 3.53 3.89 current NAV per share. Positive distribution yield does not imply positive return. Dividend is not guaranteed. 3)With the exception of the "Average annual return" figure, all data are calculated from the month end after inception. 4)Asia Asset Management 'Best of the Best' Awards 2009. Sharpe ratio 1.03 0.56 0.64 Investment involves risk. Past performance is not indicative of future performance. Funds which are invested in Annual tracking error % 1.86 1.59 1.48 emerging markets and smaller companies may also involve a higher degree of risk and are usually more sensitive to price movements. Please refer to the offering document(s) for details, including the risk factors. Average annual return % 6.57 5.41 5.44 This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.