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Latest J.P. Morgan investment product expected to be popular with investors as sentiment improves

Sep 15, 2009

Capitalising on an improved stock market performance and a gradual return of positive investor sentiment, J.P. Morgan today launched J.P. Morgan ASX 20 Growth Series 3, the third product in its increasingly popular ASX 20 Growth Series of investments.

Latest J.P. Morgan investment product expected to be popular with investors as sentiment improves

Sydney, 15 September, 2009 – Capitalising on an improved stock market performance and a gradual return of positive investor sentiment, J.P. Morgan today launched J.P. Morgan ASX 20 Growth Series 3, the third product in its increasingly popular ASX 20 Growth Series of investments.

Investors in the first two products in the series, J.P. Morgan's ASX 20 Growth Series 1 and Series 2, have seen their portfolio value increase by over 40 per cent since launch earlier this year1.

Products in the ASX 20 Growth Series provide exposure to a portfolio of 20 of the largest shares listed on the Australian Stock Exchange (ASX), but are designed to limit downside risk.

"Over recent weeks we have seen a noticeable improvement in investor sentiment and our latest product release will look to emulate the positive returns produced by the first two releases," said David Jones-Prichard, Executive Director, Equity Derivatives and Structured Products at J. P. Morgan.

The ASX 20 Growth Series 3 product allows investors to reduce risk through diversification, while knowing that their maximum loss is limited.

"It offers a combination of growth and certainty that more and more investors find very appealing, especially given the strong performance of the other products in the series," said David Jones-Prichard.

"There are still a lot of wary investors who want to capitalise on the strong market performance we've seen over recent months, but who also understand that there are still risks associated with investing in equity markets. The longer term exposure of five years of the ASX 20 Growth Series 3 investment gives investors the potential to capitalise on any short term gains, but is long enough to allow investors to be able to ride out any market slides," he said.

Dividends from the shares underlying the ASX 20 Growth products are reinvested, enhancing the potential return on the investment. At the end of years three and four, 50 per cent of the gains achieved on the ASX 20 portfolio are locked in and added to the level of protection within the product. At maturity, the investor will be delivered the cash value of their investment or a holding in each of the shares in the ASX 20 portfolio.

Of further appeal to investors is J.P. Morgan's low fee structure. "The charges at 1.8 per cent are among the lowest in the market for similar styles of products. J.P. Morgan's fee is in line with those of retail managed funds, plus it also include management fees and the cost of the equity protection component," he said.

1As at 31 August 2009

J.P. Morgan's ASX 20 Growth Series 3 offers opportunities for a range of investors:
  • People saving for retirement. The Growth Series 3 offers significant protection of an investor's equity, which makes it an ideal vehicle for retirement saving.
  • Bullish investors who want to avoid margin calls. Investors can capitalise on growth without the risk of a margin call, which is eliminated in the Growth Series 3.
  • Investors who are overexposed to cash. Increased investment in cash was a common defensive response to recent market downturns, however without diversifying, such investors risk the erosion of their returns through inflation. By re-weighting their portfolios to include exposure to shares such as those in the ASX 20 Growth Series 'basket' which, over time, generally grow at a faster pace than inflation, investors give themselves better potential to grow their wealth.
  • Self managed superannuation funds (SMSFs). The ability to invest via a limited recourse loan facility provides opportunities for SMSFs to apply leverage to their investments without having to pay interest costs during the term of the loan.
  • For the risk averse. For people who have simply been too afraid to invest in shares, the ASX 20 Growth Series 3 enables them to do so in a conservative manner that limits risk while still providing potential for good long-term returns.

J.P. Morgan Australia
David Jones-Prichard
Executive Director, Equity Derivatives & Structured Products
02 9220 1633
david.jones-prichard@jpmorgan.com

BlueChip Communication
Paul Cheal
Senior Account Manager
02 9018 8613
paul@bluechipcommunication.com.au

About J.P. Morgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of US$2.0 trillion and operations in more than 100 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 WaMu brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com and www.jpmorgan.com.au


 
 

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