JPMorgan Asset Management India Private Limited (JPMAMIPL) today announced the launch of JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund (EEMEA), an open-ended fund of funds scheme. The fund is open for subscription from 18 October 2010 to 29 October 2010 after which the scheme will be opened for ongoing sales and repurchase from 09 November 2010. The fund performance will be benchmarked against the MSCI EMEA (Total Return Net).
The primary investment objective of the Scheme is to provide long term capital appreciation by investing in JPMorgan Funds - Emerging Europe, Middle East and Africa Equity Fund, an equity fund which invests primarily in a diversified portfolio of companies incorporated or which have their registered office located in, or derive the predominant part of their economic activity from, an emerging market in central, eastern and southern Europe, Middle East or Africa.
EEMEA forms part of the broader ‘Emerging Markets’ segment. Emerging markets have grown significantly in the last few years and have the potential to show exponential growth going forward as well. The EEMEA region includes a universe of over 10 countries, from South Africa to Russia. The region boasts some of the fastest growing and rapidly urbanizing countries in the world and accounts for 83%* of the world’s oil reserves & 85%* of the world’s gas reserves. In fact, in 8 out of the last 10 years, either Russia, Turkey or South Africa has outperformed the Indian market.
The underlying fund has invested over 75% of its funds in South Africa, Russia & Turkey (as on 31st August 2010), and is primarily invested in sectors such as financials, consumer staples, telecom & consumer discretionary.
Speaking at the launch, Christopher Spelman, Chief Executive Officer, JPMAMIPL said “Our India strategy has been focused on positioning ourselves as the fund manager of choice when an investor thinks about investing internationally while simultaneously strengthening our domestic equity and fixed income offering. We believe that global diversification is important… India may remain strong over the next few years but it is unlikely to be the best performing stock market every year. It is precisely for this reason that we think Indian retail investors should look to diversify their portfolio to include international funds as well. J.P. Morgan Asset Management is committed to taking its investors to the next frontier, by identifying opportunities and potential which are currently not fully explored. The JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund will provide investors direct access to some of the fastest growing economies and will enable them to diversify their equity portfolio in the true sense.”
Sonal Pandit, portfolio manager, Emerging Europe, Middle East and Africa Team of Emerging Market Equities said “We believe, that within the Emerging Markets, EEMEA offers one of the most compelling valuation opportunities. Apart from the wealth of natural resources that this region represents, EEMEA is a strong consumption play which is under appreciated by the market. A high beta Russia & a defensive South Africa makes EEMEA a well diversified universe. This broad remit means that the fund can take advantage of portfolio diversification, thereby enhancing risk-adjusted returns and give investors exposure to a wide range of exciting long-term investment opportunities in these constantly evolving emerging markets.”
*Source: BP Statistical Review
Also Read
The below-mentioned load structure shall be applicable to the investor/ Unit Holder:
Entry Load (For NFO & Ongoing offer basis): Nil.
Exit Load (For NFO and Ongoing Offer basis):
For each Redemption (% of Applicable NAV)
Within 12 months from the date of allotment in respect of Purchase made other than through SIP 1.00%
Within 12 months from the date of allotment in respect of each of the Purchase made through SIP 1.00%
Minimum Initial Application Amount - Rs. 5,000 per application and in multiples of Re. 1 thereafter.
Minimum Additional Application Amount - Rs. 1,000 per application and in multiples of Re. 1 thereafter
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is the brand name of J.P. Morgan Chase & Co’s asset management companies. J.P. Morgan Asset Management is a global asset management leader providing world-class investment solutions to clients. With US$1,219.4 billion* in assets under management (as at 31 March 2010) and offices in 40 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
Commitment to India: JPMorgan Asset Management India Private Limited is the Indian arm of J.P. Morgan Asset Management. It commenced its mutual fund business in India in April 2007, initially establishing its head office in Mumbai and subsequently opening satellite offices in Delhi, Kolkata, Chennai, Ahmedabad, Pune and Bengaluru. The firm distributes its funds through a network of banks, independent financial advisers and national distributors and currently has caters to investors in 141 cities across the country.
The firm is still in its infancy but has a very clear agenda of bringing the inherent strengths of J.P. Morgan Asset Management into the country, namely:
Excellence and continuity in investment management
A comprehensive and competitive range of products
Strong systems and processes
Exceptional risk management and controls
J.P. Morgan Asset Management manages assets on behalf of a broad range of retail and institutional investors in India. It continues to expand its product range to meet the needs of its diverse client base, using the resources and expertise available from its global network.
*Note: Includes Investment Management and Private Banking