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Sales of JP Morgan Chase Proprietary Funds

The securities arbitration attorneys at McCabe Rabin, P.A. are investigating JPMorgan Chase’s (“JPMorgan”) marketing and sales practices regarding its proprietary funds.

It is believed that JPMorgan brokers were under pressure to push the brokerage firm’s proprietary funds regardless of whether the proprietary funds were the best options available for investors.

The Chase Strategic Portfolio may have been a fund that JPMorgan brokers were instructed to recommend to clients. The portfolio combines 15 different mutual funds and has approximately $20 billion in assets. Some of the funds in the portfolio, however, are not proprietary funds. The portfolio generates two streams of revenue in the form of fees for JPMorgan. In addition to earning annual fees as high as 1.6 percent of assets, JPMorgan also earns a fee on the underlying proprietary funds within the portfolio.

These fees create a justifiable concern that JPMorgan recommended its funds to increase its profits rather than based upon client needs. Additionally, it appears that the rate of return advertised in the Chase Strategic Portfolio’s marketing materials was not consistent with the portfolio’s actual return. The advertised rate of return was 15.39 percent, compared to the actual return of 13.87 percent.

Regulators, including both the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”), have initiated inquiries into JPMorgan’s sales practices concerning its proprietary funds.

The securities arbitration attorneys at McCabe Rabin are investigating whether JPMorgan fulfilled its suitability obligations when recommending its proprietary products to investors and whether it made accurate statements in its marketing materials concerning the performance of its proprietary funds.

Investors nationwide who have lost $100,000 or more as a result of an investment in a JPMorgan Chase proprietary fund, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to

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