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PrintJun 15, 2009
Local Demand Drives Launch of Continuously Protected Solutions.
"Traditional closed ended capital protected products provide a specific investment timeframe, whereas continuously protected products are open ended and allow investment at any time of the market cycle," said David Jones-Prichard, Executive Director, Equity Derivatives and Structured Products at J.P. Morgan.
J.P. Morgan is providing the synthetic portfolio protection swap for Linear Asset Management's Continuously Protected SMA product, which was launched today.
Featuring the market's lowest cost continuous protection fee, the Linear Continuously Protected SMA offers access to three Australian equity model portfolios.
Linear Asset Management is a leading SMA administration specialist.
"Those who invest in a Linear Continuously Protected SMA will benefit from a capital protection facility that limits the model portfolio from declining below 80 per cent of its highest ever observed value," Mr Jones-Prichard said.
Drawing on trends J.P. Morgan has experienced in international markets, Mr Jones-Prichard noted the enormous value that continuously protected products provide to investors approaching retirement, allowing exposure to growth assets while simultaneously reducing volatility and limiting downside risk.
"Protection of an investor's equity gives them peace of mind and increases the suitability of the product for people who are saving for their retirement or those looking to borrow to grow their wealth," Mr Jones-Prichard said.
"The degree of protection within an investor's portfolio can be automatically adjusted as they approach, and then progress through their retirement providing more certainty for retirement planning strategies.
"J.P. Morgan's experience shows that the opportunity for continuously protected products for investors within the retiree market is significant. They have proved immensely popular overseas, and have become the next evolution in capital protected products," Mr Jones-Prichard said.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM), is a leading global financial services
firm with assets of $2.1 trillion and operations in more than 60 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 & Co. serves millions of consumers in the United States and
many of the world's most prominent corporate, institutional and government clients
under its J.P. Morgan, Chase, and Washington Mutual brands. In Asia Pacific,
J.P. Morgan operates through 25 offices in 15 countries and has developed its
wholesale banking franchise during a history of almost 160 years in the region.
More information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.