New Fund Update: JPMorgan Emerging Europe, Middle East and Africa Equity off-shore Fund

Author: iFAST Research Team

NFO Period: 18 October 2010 to 29 October 2010

Fund Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing in JPMorgan Funds - Emerging Europe, Middle East and Africa Equity Fund, an equity fund which invests primarily in a diversified portfolio of companies incorporated or which have their registered office located in, or derive the predominant part of their economic activity from, an emerging market in central, eastern and southern Europe, Middle East or Africa.

Indicative Asset Allocation:

Instruments Minimum Exposure Maximum Exposure

Units/ shares of JP Morgan Funds – Emerging Europe, Middle East & Africa Equity Fund

80%

100%

Money market instruments / or units of liquid schemes 0 20%

Fund Managers: Mr. Namdev Chougule

Benchmark Index: MSCI EMEA (Total Return Net) Minimum initial investment: Rs. 5,000 and multiples of Re. 1/- thereafter

Entry Load: Nil. Exit Load: For redemption within 12 months from the date of allotment - 1%.

Cheque Favouring: JPMorgan EEMEA Equity Off-Shore Fund

Risk Rating: 8 (The risk rating of ‘8’ means that the fund is recommended for investors with ‘a High

risk appetite’)

Type of Fund Fund Class Style of Investing

Equity Fund

Debt Fund

Balanced Fund

Liquid Fund

Domestic Fund of Funds

International Fund of

Funds

Diversified

Mid & Small

Cap

Contra

Speciality

Sectoral

Growth Style

Value Style

Both

What is EEMEA?

EEMEA refers to the Emerging Europe, Middle East & Africa region and forms part of the broader

Emerging Markets segment.

The benchmark MSCI EMEA gives more than 80% weight-age to three geographies i.e. South Africa,

Russia and Turkey.

Benefit of Investing in EEMEA Fund

1) From a Valuation perspective, Russia and Turkey are among the cheapest emerging markets.

Moreover the region is expected to have better earnings growth in coming years and this will be

primary driver for returns.

2) The region is rich in Natural Resources; constituting 83% of world’s oil reserves, 85% of the

world’s gas reserves and also a major portion of the world’s precious metal resources.

3) Demographically the region has a large young population as a percentage of the total

population. This will lead to a creation of a huge working population and consumer base in the

years to come. The region also has low cost of labour which will help industries to have better

margins and competitive advantage.

4) Globalization will bring regions like Africa and smaller companies across EMEA to the attention

of investors which will bring more coverage and flows for the region.

5) Investment in South Africa provides a gateway to invest in sub-saharan Africa which is still

relatively unexplored by investors. In addition to that, China is a leading sponsor of

infrastructure projects in Africa, also China and Africa are now major trading partners, with

bilateral trade expected to reach USD 100bn in 2010.

6) Turkey is expected to have strong consumption spending and offer structural growth on the back of positive economics, strong demographic profiles and deepening of Financial Markets.

7) Investment in EEMEA also provides diversification benefits. In the 8 out of the last 10 years, one or more of the EEMEA countries has outperformed the Indian Markets.

Description of Parent/Underlying fund

JPMorgan Funds – Emerging Europe, Middle East & Africa Equity Fund

The fund was launched on 14 April 1997 and is managed by Oleg Biryulyov and Sonal Pandit. The AUM of

the fund as on 31 August 2010 stands at $6.1 billion.

Past Performance of the Fund:

Fund Performance against benchmark since inception

Geographical Exposure of the Fund

Conclusion

The fund is suitable for investors with a high risk appetite. Aggressive Investors who have above

average risk tolerance and have exposure to Diversified Global funds or Emerging Markets fund and

looking to invest in other unique geographies and take advantage of expected structural growth in

Russia, South Africa, Turkey and the Middle East can look at investing in this fund. The fund would

provide investors exposure to unique geographies which are otherwise not available to Indian Investors

and region/ countries like Turkey and South Africa which are hardly explored by investors. The fund

will mainly focus on three regions which are rich on natural resources, strong demographic as well as

have strong consumption and infrastructure demand. The fund also provides diversification benefits to

India dominated assets as well as potential to generate better return over years. Investors should look

at investing in this fund for a 3 to 5 year time horizon and can allocate 5% of their equity portfolio in

this type of fund.

Disclaimer

This presentation is not to be construed as an offer or solicitation for the subscription, purchase or sale of any mutual fund. No

investment decision should be taken without first viewing a fund's Scheme Information Document / Statement of Additional

Information. Any advice herein is made on a general basis and does not take into account the specific investment objectives of

the specific person or group of persons. Past performance and any forecast is not necessarily indicative of the future or likely

performance of the fund. The value of units and the income from them may fall as well as rise. Opinions expressed herein are

subject to change without notice. Mutual Fund investments are subject to market risk. You are advised to carefully read the

Scheme Information Document / Statement of Additional Information and go through all the risk factors mentioned in the

Scheme Information Document / Statement of Additional Information issued by the mutual fund before investing.