EXCLUSIVE JPMORGAN FUNDS SURVEY REVEALS MANY AFFLUENT INVESTORS EXPECT A 2-YEAR OR LESS ROAD TO RECOVERY

JPMorgan Funds conducts first annual proprietary affluent investor survey

New York, NY - December 16, 2002 - A new JPMorgan Funds survey of nearly 500 affluent investors (with at least a half million dollars in investable assets) finds that most (82%) lost money in the past year's market downturn and only a little over a third (37%) of these investors expect their portfolios to recover in the next two years. The survey also uncovered a small shift to managed accounts - only 8% - within affluent investors overall portfolio.

Other survey highlights reveal affluent investor behavior during 2002. Issues such as market recovery expectations, portfolio allocation shifts and the frequency of communication with their financial advisor are uncovered.

"Our affluent survey bridges the gap between investment trends and what is actually occurring in the market," says George Gatch, Managing Director and President of JPMorgan Funds. "In a tradition stretching back over a century, JPMorgan Fleming has acted as a global wealth manager. This experience, combined with ongoing research into the affluent marketplace, provides our intermediary clients with a distinct edge in providing expert advice and strong product offerings to their client base."

Affluent investors are not expecting a quick market recovery

• Most of these affluent investors (82%) experienced a decline in their portfolios over the past year. Only a scant 5% reported increased portfolios, while the remainder held steady.



• About 37% percent of affluent investors whose portfolios declined said they believe it would take two years or less for their portfolios to recover from the recent economic downturn. However, 29% of these investors said it would take at least five years.

Many affluent investors took a conservative approach to investments in 2002

• About half of affluent investors (48%) changed their investment strategies as a result of the market downturn.



• For those affluent investors who changed their investment strategy this year, 60% percent said they have become more conservative in their investments as a result of the recent market downturn.

This year some affluent investors contacted advisors weekly

• 14% of affluent investors who had advisers contacted their financial advisor by phone on a weekly basis during 2002. Another 32% with advisors contacted them their advisor by phone monthly, while 34% had quarterly phone contact.



• Almost 5% of investors surveyed said they had no regular phone contact with their primary financial advisor. Five percent also responded that they averaged one phone conversation per year.



• Twenty-one percent of respondents said they had no regular in-person meetings with their primary financial advisors.



• Forty percent said they met in-person with their advisors on a quarterly basis or more frequently than that.

"We hope the results of the survey bring to light some of the issues our intermediary clients have experienced over 2002," continues Gatch. "By examining the results up close we can more accurately guide investors through..."

The above results were taken from an Abt SRBI nationwide survey of affluent households with at least $500,000 in total investable assets. Abt SRBI screened a national targeted sample of listed telephone households. In qualifying households, the person most responsible for making the household's financial and investment decisions answered all questions in the survey. Interviewing was conducted September 27- October 30, 2002.

Click here to view the questionnaire.