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Building for Recovery: JPM Emerging Markets Infrastructure Fund one year on

Sep 30, 2009

London, 30th September 2009: Whilst the global downturn has cut state spending in a number of areas, infrastructure in emerging markets is not one of them says J.P. Morgan Asset Management. Fiscal stimulus packages around the world are, in many cases, proving to be a catalyst to countries’ long term commitment to infrastructure spending, particularly in emerging markets, and are providing investors with a unique growth area in the current market.

After the fund’s first year, Richard Titherington, portfolio manager for the JPM Emerging Markets Infrastructure Fund explains: “The fundamental reasons to invest in infrastructure in the emerging world are long term and have not suffered nearly as much by the global economic downturn as those in developed regions. For example, emerging urban populations are projected to grow between 133% and 150% faster than current overall population growth, with more than 350 million people, moving to urban areas between 2010 and 2015. That’s five times the population of the UK and the building and development to accommodate these people is forging ahead. In addition, more than half (59%**) of the medium and long-term loans made in China during the first half of 2009 went to the infrastructure sector, typically into central and local government projects.”

JPM Emerging Markets Infrastructure Fund, and its Luxembourg-domiciled SICAV, are designed to benefit from those companies at the forefront of the infrastructure boom and positioned to benefit from fiscal stimulus infrastructure spending. All over the emerging world, governments and businesses are recognising the need for heavy investment in infrastructure. In fact, infrastructure spending in emerging markets is projected to reach USD 21.7 trillion* over the next decade, as countries seek to support growing urban populations and sustained economic growth.

On the positioning of the fund, Titherington explains: “The fund’s mandate allows it to gain varied exposure to the infrastructure theme, from raw materials to construction, real estate to air freight.  Investing across seven sectors including energy, materials, capital goods, transportation, real estate, telecommunication services and utilities, the fund has access to a diverse range of infrastructure opportunities that are growing faster than the broader market.”

The JPM Emerging Markets Infrastructure Fund has returned 39.9% YTD in 2009 against a return of 28.9% for the MSCI customised EM Infrastructure index and 33% for the wider MSCI Emerging Markets index.

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* Source: Morgan Stanley
** Source : UBS

The JPM Emerging Markets Infrastructure Fund employs a bottom-up structured quantitative process to make meaningful comparisons across markets and identify the companies with truly market-leading characteristics. The fund benefits from the insight of J.P. Morgan Asset Management’s 22-strong team of emerging markets experts, based in local markets across the globe, who provide fundamental validation to ensure the 50- 80 stocks in the portfolio represent the best value for investors.

For further information please contact:
Ben Larter: Media Relations
Telephone: 020-7742-2112
Email benjamin.g.larter@jpmorgan.com

Notes to Editors

J.P. Morgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.1 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at June 30th 2009) and offices in 40 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.

J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority.  Registered in England No. 288553.  Registered office: 125 London Wall, London EC2Y 5AJ.

Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise.  Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors.  Stock market linked investments carry a number of inherent risks.  These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets.  Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor’s capital.