JPMorgan Asset Management India Private Limited (JPMAMIPL) on November 12, 2010 launched the JPMorgan India Capital Protection Oriented Fund, a 39 month close-ended income scheme. The fund is open for subscription from 12 November 2010 to 26 November 2010. The scheme has a rating of AAA (ind) (SO) from Fitch Ratings.
The primary investment objective of the Scheme is to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the Scheme along with capital appreciation through equity exposure. The asset allocation of the scheme will be 80-100% in debt and money market instruments and 0-20% in equity and equity linked instruments.
The Scheme follows a passive investment strategy for the fixed income component of the Scheme. The equity component of the Scheme will be primarily invested in diversified equity and equity related securities of the companies that have a potential to appreciate in the long run.
Speaking on the NFO, Christopher Spelman, Chief Executive Officer, JPMAMIPL said “The average Indian investor is typically conservative and takes into account a number of factors before making an investment decision. We always stress the importance of having a diversified portfolio that includes fixed income as a core component irrespective of the state of the equity market. We also advise distributors and clients to invest over the long term. Both these factors are extremely important; diversification balances one’s portfolio and spreads risk across various asset classes and investing over the longer term reduces risk in volatile markets, thereby averting potential losses”
Elaborating on the NFO, Nandkumar Surti, Chief Investment Officer, JPMAMIPL said “JPMorgan India Capital Protection Oriented Fund provides an attractive investment opportunity for risk–averse investors looking at a marginal equity exposure. This Fund will try to capture the current rates of interest in the debt portion of the portfolio while the equity portion is expected to deliver the superior returns. We believe that this fund will suit the needs of the investor as it can potentially deliver returns superior to traditional deposits on a tax and inflation adjusted basis.”
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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
