EMERGING MARKETS+
Please Note: This fund is now closed
Why you must consider investing in Emerging Markets
Just released: Research house Aegis says…
“EM+ is a strong and distinct market play and will suit investors with a medium-term bullish view of equities markets in emerging economies.”
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Emerging Markets+ provides a unique opportunity for investors to access the growth potential normally associated with emerging markets as well as yield derived from a basket of low volatility trading strategies. Plus you can invest in Emerging Markets+ with little or no capital outlay via a series of funding options.
Introducing Emerging Markets+
Few emerging markets investments provide a significant level of yield. Emerging Mar kets + (EM+) seeks to address this by providing exposure to the growth opportunities in emerging markets and the potential for income from an independent source.
The EM+ investment consists of a Growth Component (defined as Equity Asset in the EM+ PDS) and an Income Component (defined as Coupon Asset in the EM+ PDS). By utilising separate strategies for growth and income EM+ aims to optimize performance within the emerging market economies while also aiming to deliver potential income of up to 8% p.a.
Broaden the sources of growth in your portfolio
Freeman Fox® believes that an investment into EM+ can assist in adding some vital diversification to your portfolio because the performance of emerging markets generally does not follow the performance of developed markets.
The Growth Component is a dynamic exposure to the NYSE listed iShares MSCI Emerging Markets Index Fund (EEM US). This index comprises over 900 holdings across 23 countries.
This breadth of coverage results in the MSCI Index being treated as the benchmark for equities in Emerging Markets. It also provides the added benefits of a transparent and diversified exposure to this asset class. EEM US has returned 28.07% p.a. over the last three years1.
8% p.a. target income
The Income Component provides a dynamic exposure to two JPMorgan "rules-based" trading strategies (Yield Alpha 8 and Efficiente) that aim to derive returns while targeting low volatility. Both strategies are combined equally in a single basket to use diversification to make the volatility lower than the individual strategies applied alone. The income payments are capped at a maximum of 8% for the first 4 years, with any residual amount retained within the Income Component for future years' distributions. Any residual value remaining within the income component will be paid out in the final year.
Fund Features Summary
Up to 100% finance available
If you are interested in leveraging your investment in Emerging Markets+, approved applicants can borrow up to 100% of the investment amount.
Borrow to invest from just 8.50% p.a. fixed!
Emerging Markets+ allows you to borrow up to 64% of the investment amount at just 8.50% p.a. fixed so investors who would find it beneficial to pre-pay interest can take advantage of this option.
Suitable for Self Managed Super Funds
Geared Emerging Markets+ utilises Instalment Warrants that enable Self Managed Super Funds (SMSFs) to borrow to invest. Through Geared Emerging Markets+ SMSF's can borrow up to 64% of the investment amount and lock in the interest at a very reasonable 8.50% pa.
Capital Protection at maturity
Emerging Markets+ provides capital protection at maturity.
Separate Growth & Income Components
The growth and income strategies are not linked to each other. This is beneficial because it should assist in balancing the overall performance of the investment.
Fully Hedged
Emerging Markets+ is fully hedged in Australian dollars at inception to reduce the risk of currency exposure.
5 Ways to Invest
1. Cash Investment
Any Australian resident over the age of 18 with a minimum of $10,000 in cash available can invest in EM+.
2. Borrow up to 100% to Invest
Approved applicants can borrow up to 100% of the investment amount using an Investment Loan.
3. Access a fixed 'wholesale' rate of just 8.50% p.a.
Investors who wish to lock-in the interest on the loan can use Geared EM+ to initially draw down up to 64% of the investment amount and access a low 8.50% p.a. fixed interest rate.
4. Invest cash from your Self Managed Super Fund
SMSFs can invest directly in EM+ with as little as $10,000 cash available. 100% of the investment will be Capital Protected.
5. Borrow up to 64% to invest through your Self Managed Super Fund
New legislation now allows SMSFs to borrow to invest under stringent conditions. Geared EM+ may provide a suitable investment for SMSFs, seeking to achieve a level of gearing up to 64% as well as an attractive low rate of interest (8.50% p.a.).
Offer Opens: 9.00am (AEST) 5 May 2008
Offer Closes: 5.00pm (AEST) 20 June 2008
Important Information
JPMorgan Investments Australia Limited (ABN 21 056 751) (AFSL 298633) ("JPMIAL") as the Responsible Entity is the issuer of EMERGING MARKETS+. Freeman Fox® Ltd (ABN 17 010 763 087) (AFSL 246510) ("Freeman Fox®") is the distributor of this Offer but is not part of or otherwise associated JPMIAL, or any other member of the JPMorgan Chase Bank, and acts on its own behalf. Freeman Fox® is not the Issuer of the EM+ Product Disclosure Statement ("PDS") and takes no responsibility for the Offer or the contents of the PDS.
All potential investors should read the PDS dated on or about 23 April 2008 before making any decision to invest. The terms of EM+ are exclusively subject to the detailed provisions, including risk factors contained in the PDS. An investment in EM+ is not a deposit with or other liability of JPMorgan Chase Bank, or any of its related bodies corporate (other than JPMIAL), and is subject to investment risk, including the possible delays in repayment and loss of income or principal invested. JPMIAL does not accept any responsibility for any non-receipt of your application form(s) and/or payments. JPMIAL may decline to issue any EM+ to any particular applicant, in which case the application monies will be refunded in full (without interest).
Neither JPMorgan Chase Bank nor any of its related bodies corporate guarantees the performance of EM+, nor does such entities guarantee the repayment of principal from EM+ where they are sold prior to the expiry date for any reason. JPMIAL and/or its affiliates may from time to time, as principal or agent, have positions in, or may buy or sell, or make a market in any securities, currencies, financial instruments or other assets underlying the transaction to which this document relates and may provide investment banking and other services to and/or have officers who serve as directors of the companies referred to in this document. JP Morgan Chase Bank and its related bodies corporate give no warranty as to the reliability or accuracy of the information in this document, nor accept any responsibility or liability for any errors or omissions.
iShares is a registered mark of Barclays Global Investors, N.A. ("BGI"). EM+ is not sponsored, endorsed, sold or promoted by BGI. BGI makes no representations or warranties to the owners of EM+ or any member of the public regarding the availability of investing in EM+. BGI has no obligation or liability.