Portfolio diversification Alternatives and portfolio risk/return Annualized volatility and returns, 1989 - 1Q23 10% Annualized returns 8% 7% 6% 30% Equities 40% Bonds 30% Alts 40% Equities 60% Bonds Show Transcribed Text 8% 40% Equities 30% Bonds 30% Alts 9% 9 50% Equities 20% Bonds 30% Alts 60% Equities 40% Bonds Portfolio allocation 40 Equities 60 F.I. 60 Equities 40 F.I. 80 Equities 20 F.I. 30 Alts/30 Equities/40 F.I. 30 Alts/40 Equities/30 F.I. 30 Alts/50 Equities/20 F.I. 10% Annualized volatility Volatility 6.8% 9.7% 12.8% 6.5% 8.0% 9.5% 11% Source: Bloomberg. Burgiss, FactSet, HRFI NCREIF, Standard & Poor's, JP Morgan Asset Management Alts include hedge funds, real estate and private equity, with each receiving an equal weight Portfolios are rebalanced at the start of the year. This slide comes from our Gate to Guide to the Markets US Data are as of September 30, 2023 GTM U.S. 80% Equities 20% Bonds Annualized returns 7.4% 8.4% 9.2% 8.5% 9.0% 9.4% 12% 57 13% J.P.Morgan ASSET MANA