JPMorgan plans annual income CDs linked to ETF Efficiente 5 index

By Angela McDaniels

Tacoma, Wash., May 2 - JPMorgan Chase Bank, NA plans to price index annual income certificates of deposit due May 31, 2019 linked to the JPMorgan ETF Efficiente 5 index, according to a term sheet.

Interest is payable annually at a rate equal to the index return multiplied by the index factor, subject to a floor of zero.

The index factor is one divided by the number of coupon determination dates that have occurred to date including the current coupon determination date. The coupon determination dates are May 28, 2013, May 27, 2014, May 26, 2015, May 25, 2016, May 25, 2017, May 25, 2018 and May 23, 2019.

The payout at maturity will be par plus the last coupon payment, if any.

The index tracks the excess return of a portfolio of 12 exchange-traded funds, with dividends reinvested, and the JPMorgan Cash Index USD 3 Month above the return of the cash index less a fee of 0.5% per year that accrues daily.

The 12 ETFs are the SPDR S&P 500 ETF trust, the iShares Russell 2000 index fund, the iShares MSCI EAFE index fund, the iShares Barclays 20+ Year Treasury Bond fund, the iShares iBOXX Investment Grade Corporate Bond fund, the iShares iBOXX High Yield Corporate Bond fund, the iShares MSCI Emerging Markets index fund, the iShares Emerging Markets Bond fund, the iShares Dow Jones Real Estate index fund, the iShares S&P GSCI Commodity-Indexed trust, the SPDR Gold trust and iShares Barclays TIPS Bond.

The CDs (Cusip: 48124JCT3) are expected to price May 18 and settle May 25.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

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