J.P. Morgan Asset Management_Global Liquidity_October 2010 (24)

8/3/2019 J.P. Morgan Asset Management_Global Liquidity_October 2010 (24)

1/26

J.P. Morgan Asset Management

Global Liquidity

October 2010


2/26

J.P. Morgan Asset Management Standard Template 2009.ppt

Table of contents

Page

JPMorgan Chase & Co. Organisational overview 2

J.P. Morgan Global Liquidity 5

J.P. Morgan Asset Management India Liquidity overview 7

J.P. Morgan Asset Management India team 19

Disclaimers 23

1

Table of Contents


3/26

2

JPMorgan Chase & Co. Organisational overview

J P Morgan Asset Management Standard Template 2009 ppt


4/26


JPMorgan Chase & Co. organisational overview

3

J.P. Morgan Global Liquidity

As a leading provider of short-term investments,we provide the knowledge, global resources,innovative solutions and long-term relationshipsclients seek in an investment partner

Retail Services

Consumer Banking

Auto & Education Finance

Home Finance

Insurance

Small BusinessBanking

CommercialBanking

Middle Market Banking

Chase Business Credit

Commercial Real EstateBanking

Mid-Corporate Banking

Chase Equipment Leasing

Card Services

Credit CardsMerchant Processing

Treasury &Security Services

Treasury Services

Worldwide SecuritiesServices

AssetManagement

J.P. MorganGlobal Liquidity

J.P. Morgan's Private Bank

Private Client Services

J.P. Morgan

Investments

InvestmentBanking

Credit and Rate Markets

Investment Banking

Institutional Equities

ProprietaryPositioning



5/26


J.P. Morgan Asset Management

Short term fixed income is the largest business byassets for JPMAM

Outside India, J. P. Morgans Global LiquidityBusiness is the leading provider of institutional AAA-rated money market funds, including US registered

2a-7 funds and European domiciled IMMFA moneymarket funds

J.P. Morgan Asset Management India startedoperations in 2007

All data as of March 31, 2010. 1 Above numbers are total global short-term assets (inclusive ofall currencies). Above numbers do not include separately managed portfolios of the PrivateBank. 2 Based on AUM for the Asset Management (JPMAM, PCS, PB) division of JPMorganChase & Co. as of March 31, 2010. The above chart is for illustrative purposes only.

Executive Summary

Assets ($bn)

Short Term: $5491

Total AUM: $1,2192

Asset Profile

45%

18%

25%

4%

8%

Shor t Term Fixed Income

Fixed In come

Equity

Asset Allocation

Real Estate &Alternatives



6/26

J.P. Morgan Global Liquidity

5

J.P. Morgans Global Liquidity business offers its clients a tailored set of US and international capabilities to

address specific cash needs limited to the following selected currencies worldwide

Money Market Funds

USD Liquidity Fund

USD Treasury Liquidity Fund

USD Government Liquidity Fund

Separately Managed Portfolios

Liquidity, enhanced and short duration

For Non-U.S. Investors

Offshore U.S. Dollar ($)

Money Market Funds

Prime Money Market Funds

U.S. Government/Treasury Funds

U.S. Tax-Free Funds


Liquidity, enhanced and short duration

Taxable and tax-aware strategies

U.S. Dollar ($)

Money Market Funds

Sterling Liquidity Fund

Sterling Gilt Liquidity Fund


Liquidity, enhanced and short durationFor Non-U.S. Investors

U.K. Pound Sterling ()

Money Market Funds

EUR Liquidity Fund

EUR Government Liquidity Fund


Liquidity, enhanced and short durationFor Non-U.S. Investors

Euro ()

Money Market Funds

RMB Money Market Fund domiciledin China

For Non-U.S. InvestorsFor qualified China Domiciled investors

only

Chinese Renminbi ()

Money Market Funds

SGD Liquidity Fund domiciled inLuxembourg


Singapore Dollar ($)

Money Market Funds

JPY Cash Liquidity Fund domiciledin Japan


Japanese Yen ()

*In relation to the CIFM RMB Money Market Fund managed by China International Fund Management Co., Ltd. (CIFM), which is a joint venture betweenShanghai International Trust and Investment Co. Ltd and J.P. Morgan Asset Management (UK) Ltd., for qualifi ed China domiciled investors only.



7/26

Institutional money market fund rankings

6

J.P. Morgan Global Liquidity is the largest institutional money market fund provider

Source: iMoneyNet as of 4/30/2010 / iMoneyNet Offshore as of 4/30/2010. International funds are limited to European-domiciled funds under IMMFA

(Institutional Money Market Fund Association).

AuM in USD Million

U.S. institutional MMF rankings

Rank Complex AuM Share %

1 JPMorgan 275,207.50 14.87

2 Fidelity 251,597.20 13.59

3 BlackRock 177,013.80 9.56

4 Dreyfus 169,501.90 9.16

5 Federated 168,201.70 9.09

6 Goldman Sachs 142,892.20 7.727 Wells Fargo 78,449.00 4.24

8 BofA Global Cap 54,038.60 2.92

9 Invesco 52,581.10 2.84

10 Deutsche 50,229.80 2.71

Top 10 Fund Complexes 1,419,712.80 76.70

Total Fund Universe 1,850,922.90

International MMF rankings


1 JPMorgan 161,787.10 25.35

2 BlackRock 82,307.00 12.89

3 Goldman Sachs 55,562.30 8.70

4 HSBC 46,568.10 7.30

5 Legg Mason 44,519.30 6.97

6 BNY Mellon 28,569.40 4.487 Scottish Widows 23,635.00 3.70

8 BNP PARIBAS 23,039.20 3.61

9 SSgA 22,038.20 3.45

10 Deutsche 19,143.90 3.00

Top 10 Fund Complexes 507,169.50 79.45

Total Fund Universe 638,312.70

Global institutional MMF rankings


1 JPMorgan 436,994.60 17.56

2 BlackRock 259,320.80 10.42

3 Fidelity 258,561.70 10.39

4 Dreyfus/BNY Mellon 200,593.00 8.06

5 Goldman Sachs 198,454.50 7.97

6 Federated 175,505.50 7.057 Legg Mason 93,653.40 3.76

8 Wells Fargo 78,449.00 3.15

9 Deutsche 69,373.70 2.79

10 HSBC 65,815.60 2.64

Top 10 Fund Complexes 1,836,721.80 73.79

Total Fund Universe 2,489,235.60


8/26

J.P. Morgan Asset Management India Liquidity overview

7



9/26

J.P. Morgan Asset Management India Liquidity solutions

8

J.P. Morgan Asset Management can provide a tailored set of domestic and international capabilities to address

your specific cash needs worldwide

JPMorgan India Liquid Fund

JPMorgan India Treasury Fund (ErstwhileLiquid Plus Fund)

Indian Rupee (INR)



10/26

J.P. Morgan Asset Management India Liquidity solutions

9

J.P. Morgan Asset Management can provide a tailored set of domestic and international capabilities to address

your specific cash needs worldwide


JPMorgan India Treasury Fund (ErstwhileLiquid Plus Fund)

Indian Rupee (INR)



11/26

Fund characteristics

Investment objectives


The investment objective of the Scheme is to provide reasonable returns, commensurate with low risk whileproviding a high level of liquidity, through a portfolio of money market and debt securities. However therecan be no assurance that the investment objectives of the Scheme will be realised

JPMorgan India Treasury Fund

The investment objective is to provide liquidity and optimal returns to the investors by investing primarily ina mix of short term debt and money market instruments which results in a portfolio having marginally highermaturity and moderately higher credit risk as compared to a liquid fund at the same time maintaining abalance between safety and liquidity. However, there can be no assurance that the investment objective ofthe Scheme will be realised

Benefits to investors:

Negligible interest rate, credit and liquidity risks

Each fund rated AAAf by Crisil (a Standard & Poors group company)

Daily liquidity and no lock-in periods

No entry or exit loads

Fund Characteristics

10



12/26

Awards & Recognition

JPMorgan India Treasury Fund Ranked a Seven Star Fund (ICRA Online MF Rank

December 2009)

Won the award for Best Performance in the category ofOpen Ended Liquid for the one year period endingDecember 31, 2009 at the ICRA Mutual Fund Awards 2010

This is awarded to the best performing fund among the

top funds in a particular category

The JPMorgan India Treasury Fund SuperInstitutional Plan received the Gold Award for BestPerformance in the category of Open Ended Liquid Institutional Plan for one year period ending December31, 2009

For Methodology and other risk factors please refer to slidenumber 25

11

Past performance is no guarantee of future results.



13/26


Minimum initial application amount Retail: Rs. 5,000 per application and in multiples of Re. 1 thereafter.

Super Institutional: Rs. 1,00,00,000 per application and in multiples of Re. 1 thereafter.

Minimum additional application amount Retail: Rs. 1,000 per application and in multiples of Re. 1 thereafter.

Super Institutional: Re. 1 per application and in multiples of Re. 1 thereafter.

Minimum amount/number of units for redemption: Rs. 5,000 or 500 units

Load Structure Entry Load: NIL

Exit Load: NIL

12



14/26

Fund characteristics

Investment Guidelines

Conservative investment guidelines

Well defined investment limits at fund house level, scheme level and individual counterparty level

Investment done only in AAA & AA for longer tenure instrument

Investment done only in P1+ & P1( Only with high conviction companies) for shorter tenure instruments

No investments have been made in Real Estate, Asset Backed Structures (ABS) and Loan PTC

No investment have been made in unrated securities

Liquidity and Safety always remain top priority


13



15/26

Following investment strategies helped the fund to smoothly sail the Oct08 Dec08 liquidity crisis:

0% exposure in securities of companies in BSE Realty index, Asset Backed Structures (ABS), Loan

PTC and unrated securities since inception

Maintain adequate amount of cash/highly liquid and top rated assets which helped to face

unexpected redemption pressure

Liquidity and Safety always remain the top priority

Liquid Fund: the Average Maturity has been around 90 days ( the fund has always endeavored to

keep it around 90 days even before SEBIs new directive was issued on average maturity of such

schemes)

Investment strategies since inception


14



16/26

Investment strategies

Conservative investment limit

Dual investment limit both at the fund level as well issuer level

All the investments are backed by

Company analysis

Industry analysis

Call with management and rating agencies

Taking inputs from in house equity investment team

Any new counterparty/investment approval goes through risk management and investment committee for

limits set up



15



17/26

JPM Treasury FundAsset Quality break up in %

JPMorgan India Treasury Fund Asset Quality Break up in %

Source : JPM Fund Factsheets

16



18/26

JPMorgan India Treasury Fund AUM Growth

Source : JPM Fund FactsheetsPast performance may or may not sustained in future

17



19/26

JPMorgan India Liquid Fund AUM Growth

18

Source : JPM Fund FactsheetsPast performance may or may not sustained in future



20/26

19

J.P. Morgan Asset Management India Team



21/26

The JPMorgan Asset Management India Fixed Income team

J.P. Morgan Asset Management India Fixed Income team

Nandkumar SurtiChief Investment Officer

18 years ofIndia-related experience

Namdev ChouguleAssistant Fund Manager

9 years of

India-related experience

Ravi RatanpalDealer

4 years of

India-related experience

20



22/26

Using J.P. Morgan Asset Management Money Market Funds India

21

Our service centers are staffed with highlytrained individuals who are dedicated toservicing clients, accepting fund transactions,providing product support and timely issueresolution

Service center representatives are availableto handle requests for all J.P. Morgan AssetManagement clients

Purchase / Redemption in JPMorgan IndiaLiquid Fund & JPMorgan India Treasury Fundthrough Fax

Purchase / Redemption funds transfer viaRTGS and Bank Transfer

Redemptions of Liquid / Treasury schemes atT+1

Personalized / Dedicated Relationship

Manager for access to historic transactions,NAV, Unit balance

Monthly /Daily statements are available viaemail or online through RTA

Telephone:+91-22-6783-7000

Fax:+91-22-6783-7001

Email:

[email protected]

Mail:J.P. Morgan Asset ManagementKalpataru Synergy, 3rd Floor, West Wing,Santacruz East, Mumbai 400 055India

Dedicated service Conducting business Contact us
mailto:[email protected]:[email protected]


23/26

Thank you!

22


24/26

Disclaimers

23



25/26

J.P. Morgan Asset Management India Disclaimers & Risk Factors

Any forecasts or opinions expressed are JPMorgan Asset Management India Private Limiteds own at the date of this document and may be subject to change. The value ofinvestments and the income from them may fluctuate and your investment is not guaranteed. Past performance is not necessarily a guide to future performance and investorsmay not get back the full amount invested. Exchange rates may cause the value of underlying overseas investments to go down or up. Investments in emerging markets may bemore volatile than other markets and the risk to your capital is therefore greater. Also, the economic and political situations may be more volatile than in established economiesand these may adversely influence the value of investments made.

Risk Factors: Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee against loss in the Scheme or that theScheme's objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on variousfactors and forces affecting capital markets. Past performance of the Sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme.Investors in the Scheme are not being offered a guaranteed or assured rate of return. JPMorgan India Liquid Fund and JPMorgan India Treasury Fund are only thenames of the Schemes and do not in any manner indicate the quality of the Scheme or its future prospects and returns. Mutual funds invest in securities which maynot always be profitable and there can be no guarantee against loss resulting from investing in the Scheme. For scheme specific risk factors and other details please

refer to the scheme information document / offer document.

JPMorgan Mutual Fund offers for subscription only the units of schemes of JPMorgan Mutual Fund and not the units of schemes/funds not registered / authorised by SEBI. Anymention of activities outside India is only for informational purposes only and may not be related to the Indian activities.

Mutual Fund investments are subject to market risks. Please read the scheme information document (SID) and statement of additional information (SAI) carefullybefore investing.

Statutory details: Sponsor: JPMorgan Asset Management (Asia) Inc. Trustee: JPMorgan Mutual Fund India Private Limited, a company incorporated under the Companies Act,1956. Asset Management Company: JPMorgan Asset Management India Private Limited, a company incorporated under the Companies Act, 1956. JPMorgan Mutual Fund hasbeen established as a Trust under the Indian Trusts Act, 1882, by JPMorgan Asset Management (Asia) Inc., liability restricted to initial contribution of Rs. 1 lakh.

The assigned rating AAAf is valid only for "JPMorgan India Liquid Fund and JPMorgan India Treasury Fund. The rating of CRISIL is not an opinion of the Asset ManagementCompany's willingness or ability to make timely payment to the investor. The rating is also not an opinion on the stability of the NAV of the Funds, which could vary with marketdevelopments.

Issued in India by JPMorgan Asset Management India Private Limited

24



26/26

Methodology: ICRA Mutual Fund (MF) Awards are based on the methodology developed by ICRA Online. Only growth options of open-ended MF schemesare considered for ranking, apart from Liquid and Ultra Short Term schemes, where Institutional Plans have also been considered. The basic eligibility criteriaare based on the average category AUM and stringent disclosure norms for portfolio and NAV over one and three year periods. For the purpose of ranking,the MF schemes are classified on the basis of their investment style (i.e. actual allocations across asset classes and sectors) over the ranking periods of oneand three years, rather than the objective stated in their prospectus. Thereafter, the ranks assigned to the schemes are a result of an in-depth analysis oncertain critical parameters, including: Risk-Adjusted Return, Portfolio Concentration Characteristics, Liquidity, Corpus Size, Average Maturity and CreditQuality. NAVs have been used for calculating returns; these NAVs consist of the expense ratio. Loads are not taken into cons ideration during the rankingexercise. The rankings are conducted for different categories over the one-year and three-year horizon. Schemes are assigned 1- star, 2- star, 3- star, 4-starand 5- star based on a ranking scale. The best scorer amongst the 5- star in a category is ranked as 7- star or the best fund in the category

Ranking Source & Publisher: ICRA Online Limited

Disclaimer :JPMorgan India Treasury FundRetail Fund has been ranked as a Seven Star Fund in the category of Open Ended Liquid schemes for its 1

year performance till December 31, 2009. The rank is an outcome of an objective and comparative analysis against various parameters, including: riskadjusted return, fund size, sector concentration, credit indicator and average maturity. The ranking methodology did not take into account entry and exit loadsimposed by the Fund. There were 29 schemes considered in Open Ended Liquid category for the ranking exercise. The rank is n either a certificate ofstatutory compliance nor any guarantee on the future performance of JPMorgan India Treasury Fund Retail Fund.


Disclaimer : JPMorgan India Treasury FundSuper IP Fund has been ranked as a Seven Star Fund in the category of Open Ended Liquid IP sche mes forits 1 year performance till December 31, 2009. The rank is an outcome of an objective and comparative analysis against various parameters, including: riskadjusted return, fund size, sector concentration, credit indicator and average maturity. The ranking methodology did not take into account entry and exit loadsimposed by the Fund. There were 26 schemes considered in Open Ended Liquid IP category for the ranking exercise. The rank i s neither a certificate of

statutory compliance nor any guarantee on the future performance of JPMorgan India Treasury Fund Super IP Fund.


25

J.P. Morgan Asset Management_Global Liquidity_October 2010 (24)

Documents

Transcript of J.P. Morgan Asset Management_Global Liquidity_October 2010 (24)