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PrintMay 16, 2007
JPMorgan today announced an evolutionary advance in instalment warrants: JPMorgan Dividend Advance Resettable Warrant Instalments (DARWINS).
Sydney, May [16], 2007 - JPMorgan today announced an evolutionary advance in instalment warrants: JPMorgan Dividend Advance Resettable Warrant Instalments (DARWINS) - an ASX-listed security providing retail investors with the benefits of an instalment warrant structure, coupled with the opportunity to receive a portion of estimated dividends paid upfront.
"At a time when interest in instalment warrants among advisers and investors is growing strongly, JPMorgan is excited to offer Australian retail investors an instalment warrant series with an exclusive difference - the advantage of having up to 75 per cent of the estimated dividend paid upfront," said Mr David Jones-Prichard, Vice President, Equity Derivatives and Structured Products with JPMorgan.
"DARWINS deliver a smart way to gain greater leverage over a number of leading ASX-listed securities. These underlying securities include select blue chip stocks with a history of strong dividend payments - increasing the potential for greater returns and leverage.
"DARWINS also offer the benefit of available franking credits (if eligible) attached to dividends paid by the underlying stock, which may deliver post-tax yield advantages," Mr Jones-Prichard said.
DARWINS is the third in a series of innovative investment offerings to be introduced to Australian investors by one of the world's leading investment banking groups and structured investment providers, JPMorgan. The initial two, JPMorgan Alternative Energy STRATAS and JPMorgan Masters Selection Series STRATAS, were launched in February and May this year.
Mr Rob Priestley, Country Head of JPMorgan in Australia said: "We are delighted to launch DARWINS, the latest offering in JPMorgan's evolving suite of retail investments, in line with our aim of continuing to deliver global market access to local investors."
DARWINS will be traded on the Australian Stock Exchange and available through financial advisers and stockbrokers.
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 instalment warrants
A warrant is a financial instrument issued by banks and other financial institutions and traded on the ASX. Warrants provide investors with an alternative way to gain exposure to a variety of underlying assets, such as shares, to achieve a desired result.
Warrants with an investment purpose, such as instalment warrants, are generally longer-dated, tend to experience less market trading volumes and generally have a lower risk/return profile.
The main reasons why you would want to invest in instalment warrants:
- Achieve a leveraged exposure to an underlying share giving greater return potential
- Diversify your exposure to the sharemarket through unlocking cash from existing share holdings
- Generate an income stream through dividends and franking credits (if eligible)
- There are no credit checks or margin calls