Risk Considerations Risk Considerations   

J.P. Morgan Efficiente EM 5 Index

The J.P. Morgan Efficiente EM 5 Index provides exposure to a diverse range of asset classes with focus on emerging market investments based on the modern portfolio theory approach to asset allocation.


Key features of the J.P. Morgan Efficiente EM 5 Index include:

  • The Index selects from a basket of 15 assets (the “Basket Constituents”), including equities, bonds such as emerging and developed markets and government debt, alternative investments such as agriculture, gold, and energy, and the JPMorgan Cash Index USD 3 Month (the “Cash Index”);
  • The weights allocated to the Basket Constituents are dynamic and are determined monthly based on a rules-based methodology that targets an annualized volatility of 5% or less;
  • An algorithmic portfolio construction which utilizes momentum and correlation across asset classes;
  • The Index is an excess return index and reflects the weighted performance of the Basket Constituents (including reinvested dividends for the Basket Constituents that are exchange traded funds) with the returns of certain Basket Constituents tracked as the excess returns over the Cash Index;
  • The Index level incorporates the daily deduction fee of 0.50% per annum and is published on Bloomberg under the ticker EFJPEM5E;
  • May be appropriate for investors seeking exposure to a diverse range of asset classes with a focus on emerging markets investments.

Note: Current offerings limited to Certificate of Deposit issued by JPMCB.

For information relating to Certificates of Deposit that are linked to the J.P. Morgan Efficiente EM 5 Index, please refer to the Broker-Dealer Offerings page or consult the respective offering documents.

Index Information



Index Calculation Agent 

J.P. Morgan Securities plc

Number of Potential Basket Constituents   


Volatility Target


Inception Date

February 4, 2013

Selected Risks

  • The Index level has a deduction fee of 0.50% per annum, which causes the Index level to trail the value of a hypothetical identically constituted synthetic portfolio without a similar fee.
  • The Index may be partially uninvested, may not be successful, may not outperform an alternative strategy related to ETFs or may not achieve the targeted volatility.
  • The Index involves monthly rebalancing and maximum weighting caps applied to the Basket Constituents individually and to sectors composed of multiple Basket Constituents.
  • As a momentum-based investment strategy, the Index may fail to realize gains that could occur from holding assets that have experienced price declines,but that benefit from a sudden price spike thereafter.
  • The strategy is subject to emerging markets risk, fixed income risks, currency exchange risk, small capitalization stock risk and the uncertain legal and regulatory regimes which govern commodities and future contracts.
  • Changes in the value of the constituents may offset each other.

The risks identified above are not exhaustive.


The Index is calculated and published by the Index Calculation Agent. The Index Calculation Agent uses its best efforts to ensure that the Index is calculated correctly. The Index Calculation Agent does not warrant the accuracy or completeness of any information contained herein. Irrespective of its obligations towards the Issuer, the Index Calculation Agent has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. The calculation and publication of the Index by the Index Calculation Agent for the purpose of use in connection with the financial instrument does not constitute a recommendation by the Index Calculation Agent to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of the Index Calculation Agent with regard to any investment in this financial instrument.

The material contained herein is for informational purposes only, designed to illustrate an index created by the Index Sponsor that implies an investment strategy achieved through exposure to particular underlying financial instruments. The information contained herein is for illustrative purposes only and is not meant to forecast, imply, or guarantee the future performance of any particular investment or financial product, which will vary.  An investment cannot be made directly in an index.  An index is an unmanaged statistical composite and index performance does not include payment of any sales charges, expenses or fees an investor would pay to purchase the underlining securities or any financial product that may be linked to the index.  Such costs would lower performance.

Incapital does not warrant the accuracy or completeness of any information contained herein and provides no assurance that this information is, in fact, accurate.  The information contained herein is subject to change without notice.  Any representations, projections and comparisons contained herein may not reflect the opinions of Incapital and may not be accurate either now or at a future date.  Consequently, you should not rely on such representations, projections, comparisons or other opinions when selecting any investment product or making a recommendation to a customer.  Current and future economic and other market events concerning an investment product or an index may cause the information provided herein to be incorrect.  Past performance is not indicative of future results and should never be relied upon in making an investment decision or recommendation.  Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person.  Product suitability must be independently determined for each individual investor.  Incapital explicitly disclaims any responsibility for product suitability or suitability determinations related to individual investors.

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