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PrintNew JPMorgan structured product offers access to three internationally renowned money masters
May 14, 2007
JPMorgan today announced the launch of an innovative retail structured investment, providing access to the performance of a master class of global investors.
Sydney, May [14], 2007 - JPMorgan today announced the launch of an innovative retail structured investment, providing access to the performance of a master class of global investors - Warren Buffet, Jim Rogers and Mark Mobius - plus the advantage of 100 per cent principal protection when held until maturity.
JPMorgan Masters Selection Series Strategic Asset Securities ("Masters STRATAS") is a deferred purchase agreement based on the performance of a Dynamic Global Basket including:
- Global Equities - Berkshire Hathaway Inc.
- Commodities - Diapason Rogers Commodity Index Fund, and
- Asian Equities - Templeton Asian Growth Fund
An investment in Masters STRATAS offers investors the potential for both an income stream and growth at maturity.
"The launch of Masters STRATAS represents the first time Australian retail investors have had access to the pooled talent of three of the world's investment leaders with the benefit of 100 per cent principal protection," said Mr David Jones-Prichard, Vice President, Equity Derivatives and Structured Products with JPMorgan.
"The underlying assets have all experienced impressive performance over the past five years relative to their benchmarks. The Templeton Asian Growth Fund, for instance, was up 205 per cent for the five years to the end of April 2007.
"The securities also offer potential leveraged exposure to the underlying growth assets of up to 130 per cent, as well as the benefits of diversification across asset classes, sectors and managers," Mr Jones-Prichard said. "In addition, there is no direct currency risk which means returns are not affected by movements in the Australian dollar," he said.
Masters STRATAS is the latest in a new series of structured investments to be introduced to Australian retail investors by one of the world's leading investment banks and structured investment providers, JPMorgan. The first, Alternative Energy Strategic Asset Securities ("Alternative Energy STRATAS"), was launched in February this year.
"This offering is tailored to investors seeking global and asset diversification, as well as access to select assets that are normally difficult for retail investors to invest in," Mr Jones-Prichard said.
Masters STRATAS will be available through financial advisers and brokers. The product has received a Recommended rating from independent equities research firm, Aegis. It has also has been approved for a 100 per cent Investment Loan and Margin Loan by Leveraged Equities.
Mr Damian Roche, Head of Equities for JPMorgan in Australia said: "After the launch of Alternative Energy STRATAS earlier this year, Masters STRATAS is another example of JPMorgan delivering global market access to Australian investors. The firm has tremendous execution strength in structured products which enables JPMorgan to bring a broad range of global investment alternatives to markets such as Australia."
For further information, please contact:
JPMorgan Australia
David Jones-Prichard
Vice President, Equity Derivatives & Structured Products
02 9220 1633
david.jones-prichard@jpmorgan.com
BlueChip Communication
Bruce Madden
0412 372 543
bruce@bluechipcommunication.com.au
About JPMorgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of US$1.4 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.
About Structured Investments
Structured investments provide a versatile set of tools for investors looking to combine some of the best features of equity and fixed income. These investments can combine downside protection, growth and income. Performance can be based on the performance of a range of asset classes such as equity indices, global property and commodities.
The risk and return profiles of structured investments can provide additional diversification to an investor's portfolio, enabling that investor to gain exposure to a select type of asset or group of assets, with the potential to reduce their overall portfolio risk.
A key feature of many structured investments is that they are principal protected, which may be appropriate for investors looking for growth opportunities but wanting the additional security of reduced risk to their principal investment. Maturities generally range from three to seven years, and clients should intend to hold the investments to maturity.