Fund Facts. November, 2010

Transcription

1 Fund Facts November, 2010

2 Equity and debt review Equity review September Factory Output slowed to 4.4%, significantly below consensus expectations of 6.4% as Capital Goods showed a de-growth for the 2nd month running. There were significant revisions to historical data due to the incorporation of the new WPI series. Due to these the headline average IIP growth during April-August FY11 is now 11.6% v/s 10.6% earlier quite healthy despite the blip in September. October inflation stayed firm at 8.58%, largely in line with consensus, and moderating only slightly from the 8.62% seen in September. By March 11, we expect WPI to moderate to 6.5-7%. In line with market expectations, the RBI hiked Repo and Reverse Repo rates by 25 bps, at the November 02 semi-quarterly policy meet. This was accompanied by tightening of prudential norms which may hit the property sector. The RBI showed cognizance of the tight liquidity condition and recently extended LAF, effectively reducing SLR. Despite the lower IIP growth, Q2 GDP growth came in at a higher than expected 8.9% across sectors. Corporate India's 2QFY11 earnings were broadly in line with expectations. For Sensex companies, earnings grew by about 27%, driven mainly by companies with global businesses. For a broader universe of companies (MOSL coverage) earnings grew by 22% YoY in the quarter ending September Following the stupendous success of Coal India (40% gains on listing day), the Indian Government continued with its divestment spree in November Power Grid raised $1.7bn in an FPO which got subscribed 18.5 times, Manganese Ore beat those subscription numbers with its 49x QIB book in a $300mn IPO and Shipping Corp. opened its $240mn FPO books on November 30. Next in line are Hindustan Copper, SAIL and IOCL. Some of the property IPOs have taken a backseat post the correction in the sector and so has the overall deal pipeline. December is expected to be a relatively quiet month. FIIs turned sellers towards the end of November, but remained overall net buyers through the month. Domestic funds were net buyers during the month after several months of selling. The unabated news flow on irregularities by ministers and bureaucrats and a few high profile resignations have been negative for market sentiment. The stalemate in the parliament and noise level in the media has created the prospect of political uncertainty. While it is possible that things could normalize quickly; it is difficult to rule out a scenario where the political uncertainty might prolong or worse lead to policy paralysis. We will closely monitor the situation and make suitable changes to the portfolio composition. Debt review In the last few weeks we have seen tight domestic liquidity condition dominating the fixed income market. Therefore, despite some positive news such as low probability of a rate hike in the near future and the auction of FII quota for government and corporate bonds, the market sentiments remained weak. Liquidity condition remained tight throughout the month. The net average borrowing by banks from the RBI under LAF (Liquidity Adjustment Facility) amounted to approx Rs.99,300crs (cross 1,00,000crs. See graph below) during the month. RBI has announced various measures in the last few weeks to ease the current liquidity situation: 1. Additional 2nd borrowing window for the banks from the RBI extended until 28th January Option to borrow up to 2% of their NDTL (net time and demand liabilities) as additional liquidity from CB on a temporary basis up to 28 January, Jan-08 Net Repo Balance (US$bn) Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Source: Bloomberg, Morgan Stanley Research Key economic data points released during the month were: Headline inflation rose 8.58%YoY(Bloomberg Survey: 8.50%) in October but marking only a slight moderation from the 8.62% increase last month. Keeping with past trends, August inflation was revised up to 8.82% vs. 8.51% reported earlier. Going forward we expect inflation to moderate to around 6.5 % YoY by March 11 on a high base effect. However, key risks include (1) Higher fuel prices (due to a QE2-driven commodity price rally) which besides impacting the fuel index, could also have a knock-on impact on manufactured nonfood products; (2) Primary Articles remaining at elevated levels, due to the growing dominance of structural factors and recent unseasonal rains in some parts of the country Industrial production slowed to 4.4%YoY in September; significantly below Bloomberg survey of 6.4%. However, on a cumulative basis, growth during April- September FY11 remained healthy, up 10.2%YoY vs. 6.3% during the same period last year. 2Q FY11 GDP rose 8.9%, higher than Bloomberg survey: 8.2%. Growth was led by services up 9.8%, industry up 8.9% and agriculture up 4.4%. Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jun-10 Sep-10 Nov-10 In the month of November, short term rates increased by bps due to tight liquidity conditions. The 10yr government bond moved in the range of % In the medium term (3-6months) we expect the yields to inch lower due to the expectations of falling inflation in the last quarter of 2011, pause by the RBI, improving fiscal picture and global uncertainties.

3 JPMorgan India Equity Fund Holdings as on 30 November 2010 (in %) Scheme returns as on 30 November 2010 Equity Holdings Infosys Technologies 7.90 Reliance Industries 5.89 HDFC Bank 5.14 ITC 4.84 ICICI Bank 4.33 Larsen & Toubro 4.01 Tata Consultancy Services 3.94 Housing Development Finance Cor 3.22 Cummins India 3.15 Mahindra & Mahindra 2.97 Tata Motors 2.37 Bharti Airtel 2.31 Shriram Transport Finance Co 2.29 State Bank of India 2.28 Indusind Bank 2.11 Total of top 15 stocks Total of other equity Total of all equity Total of Cash & other receivables 3.37 Portfolio analysis: Market cap-wise Large 25.8 Mid 11.7% Small 4.5% Mega 58.0% Note: Mega-cap=above USD 10bn, Large cap=usd 3bn to 10bn, Mid-cap=USD 1bn to 3bn and Small-cap=less than USD 1bn Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 2.25% Scheme BSE 200 S&P BSE CNX Sensex NIFTY 1 month -2.08% -3.56% -2.58% -2.55% 3 month 7.94% 6.45% 8.52% 8.63% 6 months 18.95% 13.90% 15.26% 15.21% 1 year 25.69% 16.43% 16.49% 15.33% 3 year -0.16% -0.04% 0.57% 0.27% Since inception 10.40% 10.58% 10.32% 9.60% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Active positive bets Total stocks in portfolio 54 Top 15 stocks 15.6% Total portfolio 37.5% Note: Active positive bets are those where the fund has a higher weightage as compared to the benchmark index (BSE-200). Source: BSE, Bloomberg. Quantitative indicators Standard deviation (%) 9.33 Beta 0.88 Sharpe ratio 0.95 Total portfolio turnover ratio 0.95 (including equity, certificate of deposit, commercial paper, floating rate note, non-convertibles debentures, preference shares, futures, options and government securities) Total turnover ratio (Equity) 0.57 Risk free rate of return (reverse repo) 5.25% % of total portfolio 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 88.6% Systematic Investment Plan Returns Liquidity measures 3.7% 2.7% 5.0% < >3 No. of days Note: Calculated on the basis of the number of days it would take to exit from stocks in the JPMIEF portfolio, assuming 30% of the average daily traded volume for each stock on the NSE/BSE can be transacted. Source: BSE/NSE, Bloomberg. Scheme Current SIP Total No. Total Present Returns NAV as on Start of units Amount Values as on (%) 30 November 10 (Rs.) Date Accumulated Invested (Rs.)30 November 2010 (Rs.) Last 12 months Scheme - Growth option Dec ,000 13, BSE 200 2, Dec ,000 12, BSE Sensex 19, Dec ,000 13, S&P Nifty 5, Dec ,000 13, Last 3 years Scheme - Growth option Dec-07 3, ,000 51, BSE 200 2, Dec ,000 49, BSE Sensex 19, Dec ,000 48, S&P Nifty 5, Dec ,000 48, Since Inception Scheme - Growth option Jun-07 4, ,000 59, BSE 200 2, Jun ,000 57, BSE Sensex 19, Jun ,000 55, S&P Nifty 5, Jun ,000 55, Assumptions: a) INR 1000/- as the amount of investment. b) The requested transaction date is 15th of every month. c) Valuation has been done on 30th of November Returns on SIP and are annualised and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on excel spreadsheet function known as XIRR. Load not taken into consideration. Calculations assume that all payouts during the period have been reinvested in the units of the scheme at then prevailing NAV. The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions. Past performance may or may not be Dividend history Record date Rate CUM (Re/unit) dividend NAV 20 December After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Portfolio analysis: Sector-wise Sector Cement Others# Utilities Telecom Pharma Metals/Minerals Consumer Oil & Gas Auto Technology Industrials/Infra* Financials 1.4% 1.5% 1.6% 2.3% 4.3% 5.5% 7.4% 8.7% 8.8% 0% 4% 8% 12% 16% 20% 24% % of portfolio 11.8% 16.3% 26.9% *Includes industrial capital goods / diversified / construction / industrial products. #Includes Chemicals, fertilisers and transportation. JPMorgan India Equity Fund 14 June 2007 An open-ended equity growth scheme The investment objective of the Scheme is to generate income and long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives. However, there can be no assurance that the investment objective of the Scheme will be realised. Rs.5,000 per application plus in multiples of Re.1/- thereof Rs.1,000 per application plus in multiples of Re.1/- thereof Fund managers: Equity Harshad Patwardhan & Amit Gadgil Harshad Patwardhan 16 Amit Gadgil 8 Harshad Patwardhan 3 yrs, 5 months Amit Gadgil 3 yrs, 5 months Fund managers: Debt & yrs, 10 months 2yrs, 7 months Exit load 1% within 12 months from the date of allotment in respect of purchase made other than through SIP. Exit load (SIP) 1%, if redeemed or switched out on or before completion of 12 months from date of allotment of units of each installment of SIP purchase BSE-200 Index Growth: Dividend: Rs crore 28%

4 JPMorgan India Smaller Companies Fund Holdings as on 30 November 2010 (in %) Scheme returns as on 30 November 2010 Equity Holdings Shriram Transport Finance Co 4.85 Cummins India 3.65 Exide Industries 3.63 Lupin 3.58 Asian Paints 3.31 Thermax India 3.00 GlaxoSmithkline Consumer Healthcare 2.84 IPCA Laboratories 2.81 CRISIL 2.76 Sobha Developers 2.61 Ess Dee Aluminium 2.60 Eicher Motors 2.34 Torrent Pharmaceuticals 2.01 Himadri Chemicals & Industries 2.01 Sadbhav Engineering 1.95 Total of top 15 stocks Total of other equity and equity related securities Total of Equity & Equity related holdings Total of Cash & other receivables 4.61 Active positive bets Total stocks in portfolio 65 Top 15 stocks 27.4% Total portfolio 63.9% Note: Active positive bets are those where the fund has a higher weightage as compared to the benchmark index (CNX-Mid Cap). Source: BSE, Bloomberg. Metals/Minerals Oil & Gas Technology Cement Utilities Others# Auto Consumer Pharma Financials Industrials/Infra* Sector Portfolio analysis: Sector-wise 1.0% 1.8% 2.8% 3.1% 3.4% 7.2% 8.8% 9.6% 10.9% 22.2% 24.6% 0% 4% 8% 12% 16% 20% 24% 28% % of portfolio *Includes industrial capital goods / diversified / construction / industrial products. #Includes Chemicals, fertilisers and transportation. Scheme CNX S&P BSE Mid CNX Sensex Cap NIFTY 1 month -1.91% -4.84% -2.58% -2.55% 3 months 5.50% 2.62% 8.52% 8.63% 6 months 19.32% 14.85% 15.26% 15.21% 1 year 34.56% 24.59% 16.49% 15.33% Since inception -5.63% 0.07% -1.18% -1.15% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Quantitative indicators Standard deviation (%) Beta 0.95 Sharpe ratio Portfolio turnover ratio 1.10 (including equity, certificate of deposit, commercial paper, floating rate note, non-convertibles debentures, preference shares, futures, options and government securities) Total turnover ratio (Equity) 0.85 Risk free rate of return (reverse repo) 5.25% Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 2.35% % of total portfolio % Systematic Investment Plan Returns Portfolio analysis: Market cap-wise Large 23.2% Note: Mega-cap=above USD 10bn, Large cap=usd 3bn to 10bn, Mid-cap=USD 1bn to 3bn and Small-cap=less than USD 1bn Liquidity measures 14.1% Mid 35.1% 19.1% Small 41.7% 15.5% < >5 No. of days Note: Calculated on the basis of the number of days it would take to exit from stocks in the JPMISCF portfolio, assuming 30% of the average daily traded volume for each stock on the NSE/BSE can be transacted. Source: BSE/NSE, Bloomberg. Scheme Current SIP Total No. Total Present Returns NAV as on Start of units Amount Values as on (%) 30 November 10 (Rs.) Date Accumulated Invested (Rs.)30 November 2010 (Rs.) Last 12 months Scheme - Growth option Dec-09 1, ,000 13, CNX Midcap 8, Dec ,000 13, BSE Sensex 19, Dec ,000 13, S&P Nifty 5, Dec ,000 13, Since Inception Scheme - Growth option Jan-08 6, ,000 53, CNX Midcap 8, Jan ,000 54, BSE Sensex 19, Jan ,000 47, S&P Nifty 5, Jan ,000 47, Assumptions: a) INR 1000/- as the amount of investment. b) The requested transaction date is 15th of every month. c) Valuation has been done on 30th of November Returns on SIP and are annualised and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on excel spreadsheet function known as XIRR. Load not taken into consideration. Calculations assume that all payouts during the period have been reinvested in the units of the scheme at then prevailing NAV. The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions. in future. JPMorgan India Smaller Companies Fund 26 December 2007 An open ended equity growth scheme The investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities focused on smaller companies. Generally, the universe will be the companies constituting the bottom fourth by way of market capitalization of stocks listed on the NSE or the BSE. The fund manager may from time to time include other equity and equity related securities outside the universe to achieve optimal portfolio construction. However, there can be no assurance that the investment objective of the scheme will be realised. Rs 5,000 per application plus in multiples of Re. 1/- thereafter Rs 1,000 per application plus in multiples of Re. 1/- thereafter Fund managers: Equity Harshad Patwardhan & Amit Gadgil Harshad Patwardhan 16 Amit Gadgil 8 Harshad Patwardhan 2yrs, 11 months Amit Gadgil 2yrs, 11 months Fund managers: Debt & yrs, 10 months 2 yrs, 7 months Exit load 1% within 12 months from the date of allotment in respect of purchase made other than through SIP. Exit load (SIP) 1%, if redeemed or switched out on or before completion of 12 months from date of allotment of units of each installment of SIP purchase ***CNX Mid Cap Growth: Dividend: Rs crore

5 JPMorgan India Alpha Fund Holdings as on 30 November 2010 (in %) Equity Holdings IPCA Laboratories 0.22 Kirloskar Oil Engines 0.21 Wabco TVS India 0.15 Equity Holdings Total 0.58 Derivatives Futures Exide Industries December HDFC Bank December Mahindra & Mahindra December Cummins India December Bharti Airtel December Ultratech Cement December Sterlite Industries December Zee Entertainment Enterprises December DLF December Oil & Natural Gas Corporation December Rural Electrification Corporation December Maruti Suzuki India December ABB December NIFTY December Futures Total Derivatives Total Margin Fixed Deposits Union Bank of India UCO Bank 9.01 Margin Fixed Deposits Total CBLO / Repo Net Receivables/(Payables) 6.48 Total Dividend history Record Date Rate (Re / Unit) CUM Dividend NAV 30-Mar Jun Sep Jan Apr Jul After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Scheme returns as on 30 November 2010 Scheme CRISIL Liquid Fund Index 1 month 0.47% 0.58% 3 months 1.07% 1.56% 6 months 2.36% 2.91% 1 year 5.46% 4.71% Since inception 6.31% 5.54% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 1.90% Quantitative indicators Standard deviation (%) 0.22 Beta (data since inception) NA* *This measure is not applicable for this fund. Note: Modified Duration and Average Maturity are not applicable to this scheme. JPMorgan India Alpha Fund 25th September 08 An interval scheme (w.e.f. 19 September 2009) The investment objective of the Scheme is to achieve a total return in excess of the return on short-term instruments through various strategies of buying and selling equity and equity-linked Securities, including derivatives, and money market and debt securities. The strategies would be designed to minimize market exposure for investors with a medium to long term horizon. However, there can be no assurance that the investment objective of the Scheme will be realised. Rs 5,000 per application and in multiples of Re 1 thereafter Rs 1,000 per application and in multiples of Re 1 Fund managers: Equity Harshad Patwardhan & Amit Gadgil Fund managers: Debt Exit load Exit load (SIP) Harshad Patwardhan 16 Amit Gadgil 8 Harshad Patwardhan Amit Gadgil & 2 years, 2 months 2 years, 2 months years, 2 months 2 years, 2 months 1% within 12 months from the date of allotment in respect of purchase made other than through SIP. 1%, if redeemed or switched out on or before completion of 12 months from date of allotment of units of each installment of SIP purchase CRISIL Liquid Fund Index Growth: Dividend: Rs crore

6 JPMorgan India Alpha Fund Hedging Positions through Futures as on November 30, 2010 Underlying Long / Short Futures Price when Current price of Margin maintained purchased (Rs.) the contract (Rs.) (in Rs. Lakhs) Nil Total %age of existing assets hedged through futures : NIL For the month ended November 30, 2010 following details specified for hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : NIL Total Number of contracts where futures were sold : NIL Gross Notional Value of contracts where futures were bought : NIL Gross Notional Value of contracts where futures were sold : NIL Net Profit/Loss value on all contracts combined : NIL Other than Hedging Positions through Futures as on November 30, 2010 Underlying Long / Short Futures Price when Current price of Margin maintained purchased (Rs.) the contract (Rs.) (in Rs. Lakhs) ABB Ltd. Short Bharti Airtel Ltd. Long Exide Industries Ltd. Long HDFC Bank Ltd. Long 2, , DLF Ltd. Short Cummins India Ltd. Long Mahindra & Mahindra Ltd. Long Maruti Suzuki India Ltd. Short 1, , NIFTY Short 5, , Oil & Natural Gas Corporation Ltd. Short 1, , Rural Electrification Corporation Ltd. Short Ultratech Cement Ltd. Long 1, , Sterlite Industries Ltd. Long Zee Entertainment Enterprises Ltd. Short Total exposure due to futures (non hedging positions) as a %age of net assets : 4.21% For the month ended November 30, 2010 following details specified for non-hedging transactions through futures which have been squared off/expired: Total Number of contracts where futures were bought : 31 Total Number of contracts where futures were sold : 25 Gross Notional Value of contracts where futures were bought : Rs Lakhs Gross Notional Value of contracts where futures were sold : Rs Lakhs Net Profit/Loss value on all contracts combined : Rs.3.51 Lakhs Hedging Positions through Put Options as on November 30, 2010 Underlying Number of Option Price Current Option Contracts when purchased Price Nil Total % age of existing assets hedged through put options - NIL For the month ended November 30, 2010 following details specified for hedging transactions through options which have already been exercised/expired : Total Number of contracts entered into : NIL; Gross National value of contracts : NIL; Net Profit/Loss on all contracts (premium paid treated as loss) : NIL Other than Hedging Positions through Options as on November 30, 2010 Underlying Call / Put Number of Option Price Current Contracts when purchased Price Nil Total Exposure through options as a %age of net assets : NIL For the month ended November 30, 2010 following details specified with regrd to non-hedging transactions through options which have already been exercised/expired : Total Number of contracts entered into : NIL; Gross National Value of contracts : NIL; Net Profit/Loss on all contracts (premium paid treated as loss) : NIL Hedging Positions through swaps as on November 30, NIL

7 JPMorgan India Tax Advantage Fund Holdings as on 30 November 2010 (in %) Scheme returns as on 30 November 2010 Equity Holdings Infosys Technologies 7.71 Reliance Industries 5.82 HDFC Bank 5.06 ITC 4.75 ICICI Bank 4.27 Larsen & Toubro 3.92 Tata Consultancy Services 3.84 Housing Development Finance Cor 3.16 Cummins India 3.04 Mahindra & Mahindra 2.92 Tata Motors 2.41 Bharti Airtel 2.29 State Bank of India 2.24 Shriram Transport Finance Co 2.20 Indusind Bank 2.08 Total of top 15 stocks Total of other equity Equity Holdings Total Net Receivables/(Payables) 5.13 Total 5.13 Sector Portfolio analysis: Sector-wise Cement Utilities Others# Telecom Pharma Metals/Minerals Consumer Oil & Gas Auto Technology Industrials/Infra* Financials 1.3% 1.5% 1.7% 2.3% 4.1% 5.4% 7.2% 8.4% 8.8% 11.6% % of portfolio 16.4% 0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 26.2% *Includes industrial capital goods / diversified / construction / industrial products. # Includes transportation. Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 2.50% Scheme BSE 200 S&P BSE CNX Sensex NIFTY 1 month -1.73% -3.56% -2.58% -2.55% 3 months 7.90% 6.45% 8.52% 8.63% 6 months 18.27% 13.90% 15.26% 15.21% 1 year 25.69% 16.43% 16.49% 15.33% Since inception 43.25% 57.44% 50.14% 52.15% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Active positive bets Total stocks in portfolio 55 Top 15 stocks 14.9% Total portfolio 35.9% Note: Active positive bets are those where the fund has a higher weightage as compared to the benchmark index (BSE-200). Source: BSE, Bloomberg. Quantitative indicators Standard deviation (%) 5.99 Beta 0.59 Sharpe ratio 7.21 Portfolio turnover ratio 0.78 (including equity, certificate of deposit, commercial paper, floating rate note, non-convertibles debentures, preference shares, futures, options and government securities) Total turnover ratio (Equity) 0.78 Risk free rate of return (reverse repo) 5.25% Large 24.9% Systematic Investment Plan Returns Portfolio analysis: Market cap-wise Mid 7.3% Small 5.4% Note: Mega-cap=above USD 10bn, Large cap=usd 3bn to 10bn, Mid-cap=USD 1bn to 3bn and Small-cap=less than USD 1bn Dividend history Mega 62.4% Record date Rate CUM (Re/unit) dividend NAV 15-Dec Jan After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Scheme Current SIP Total No. Total Present Returns NAV as on Start of units Amount Values as on (%) 30 November 10 (Rs.) Date Accumulated Invested (Rs.)30 November 2010 (Rs.) Last 12 months Scheme - Growth option Dec ,000 13, BSE 200 2, Dec ,000 12, BSE Sensex 19, Dec ,000 13, S&P Nifty 5, Dec ,000 13, Since Inception Scheme - Growth option Feb-09 1, ,000 29, BSE 200 2, Feb ,000 28, BSE Sensex 19, Feb ,000 27, S&P Nifty 5, Feb ,000 27, Assumptions: a) INR 1000/- as the amount of investment. b) The requested transaction date is 15th of every month. c) Valuation has been done on 30th of November Returns on SIP and are annualised and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on excel spreadsheet function known as XIRR. Load not taken into consideration. Calculations assume that all payouts during the period have been reinvested in the units of the scheme at then prevailing NAV. The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions. in future. JPMorgan India Tax Advantage Fund 27th January 09 An open ended equity linked savings scheme The investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends. Rs 500 per application and in multiples of Rs 500 thereafter Rs 500 per application and in multiples of Rs 500 thereafter Fund managers: Equity Harshad Patwardhan & Amit Gadgil Harshad Patwardhan 16 Amit Gadgil 8 Harshad Patwardhan 1 yr, 10 months Amit Gadgil 1 yr, 10 months Fund managers: Debt & 20 years 9 years 1 yr, 10 months 1 yr, 10 months Exit load Nil w.e.f. July 1, Exit load (SIP) Nil w.e.f. July 1, BSE-200 Index Growth: Dividend: Rs crore

8 JPMorgan JF Greater China Equity Off-shore Fund Details of JPMorgan JF Greater China Equity Off-shore Fund Holdings as of 30 November 2010 (in %) International mutual fund units JPMorgan Funds - JF Greater China Fund International mutual fund units total Cash & other receivables CBLO / Repo 3.43 Net Receivables / (Payables) Cash & other receivables Total 2.13 Scheme returns as on 30 November 2010 Scheme MSCI Golden Dragon Index 1 month 3.11% 2.89% 3 months 12.25% 10.52% 6 months 18.84% 16.37% 1 year 11.75% 8.84% Since inception 13.92% 11.64% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 0.82% Details of JPMorgan Funds - JF Greater China Equity Fund (underlying fund) Equity holding Weight (%) CNOOC (Energy) 4.40 China Construction Bank (Financials) 4.10 China Mobile (Telecommunication Services) 3.20 Bank of China (Financials) 3.20 Cheung Kong (Financials) 3.20 Hon Hai Precisoin Industry (Information Technology) 2.80 Taiwan Semiconductor (Information Technology) 2.70 Tencent Holdings (Information Technology) 2.70 Ping An Insurance (Financials) 2.60 Wharf (Financials) 1.90 Total Statistical analysis as on 31 October years 5 years Correlation Alpha % Beta Geographical breakdown as on 31 October 2010 Country Fund China 57.3% Taiwan 25.0% Hong Kong 16.4% Cash 1.3% Total 100.0% Performance as on 31 October 2010 JF A (acc) - USD 10 largest holdings as on 31 October /10/05 31/10/06 31/10/07 31/10/08 31/10/09 31/10/10 Sector breakdown as on 31 October 2010 Sector Fund Financials 36.7% Information Technology 18.3% Materials 10.8% Energy 8.9% Consumer Discretionary 7.4% Industrials 6.1% Consumer Staples 4.2% Telecommunication Services 3.2% Health Care 2.0% Utilities 1.1% Cash 1.3% Total 100.0% JPMorgan JF Greater China Equity Off-shore Fund 26 August 2009 An open ended fund of funds scheme The primary investment objective of the Scheme is to provide long term capital appreciation by investing in JPMorgan Funds - JF Greater China 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, a country in the Greater China region. Rs 10,000 per application plus in multiples of Re. 1/- thereafter Rs 1,000 per application plus in multiples of Re. 1/- thereafter Fund manager 9 years 1 yr, 3 months Exit load 1% within 12 months from the date of allotment in respect of purchase made other than through SIP Exit load (SIP) 1%, if redeemed or switched out on or before completion of 12 months from date of allotment of units of each installment of SIP purchase MSCI Golden Dragon Index (Total Return Net) Regular Growth: in future. Rs crore Portfolio Review: In October, Greater China equities continued to rally alongside global equities amid continued optimism about the positive effects of further quantitative easing by the US Fed. Despite a surprise 0.25% interest rate increase by the PBoC, Mainland Chinese stock markets went from strength-to-strength af ter reopening post the Golden Week hol iday. Consequently, the MSCI China was the strongest of the three Greater China markets. Commodities and banks were particularly strong on market optimism that an economic hard landing has been avoided. The MSCI Hong Kong continued its rally given optimism about property prices, while the MSCI Taiwan rose as EPS revisions for certain technology companies appeared to have bottomed. The Fund outperformed against this backdrop. Outlook: Equity markets continue to be buoyant, and while a correction is always a possibility given the seemingly uninterrupted strength of the recent market move, we remain optimistic about both fundamentals and valuations in Greater China. The Chinese authorities, while still contending with near-term CPI inflation, appear to have engineered a soft economic landing. We have added to secular growth positions in China while trimming some recent outperformers in both financials and commodities. The core strategies of the Fund remain unchanged. Past performance may or may not be

9 JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund Details of JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund Holdings as of 30 November 2010 (in %) International mutual fund units JPMorgan Funds - Emerging Europe Middle East Africa Fund International mutual fund units total Cash & other receivables Net Receivables / (Payables) 0.91 Cash & other receivables Total 0.91 Scheme returns as on 30 November 2010 Scheme MSCI EMEA (Total Return Net) 1 month NA NA 3 months NA NA 6 months NA NA Since inception -2.72% -3.99% Note: Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 1.34% Details of JPMorgan Funds - Emerging Europe, Middle East and Africa Equity Fund Equity holding Weight (%) Sberbank (Financials) 6.40 MTN (Telecommunication Services) 4.00 Magnit (Consumer Staples) 3.60 Mobile Telesystems (Telecommunication Services) 3.40 Turkiye Garanti Bankasi (Financials) 3.30 Anglogold Ashanti (Materials) 3.00 Massmart (Consumer Staples) 2.90 CTC Media (Consumer Discretionary) 2.70 Dragon Oil (Energy) 2.60 Standard Bank (Financials) 2.50 Total Geographical breakdown as on 31 October 2010 Country Fund Russia 32.9% South Africa 32.0% Turkey 14.7% Poland 5.7% Kazakhstan 2.2% Czech Republic 1.6% Nigeria 1.6% Egypt 1.1% Ukraine 1.1% United Kingdom 1.1% Qatar 1.0% Congo 0.8% United Arab Emirates 0.5% Oman 0.4% Hungary 0.0% Morocco 0.0% Cash 3.3% Total 100.0% Statistical analysis as on 31 October years 5 years Correlation Alpha % Beta largest holdings as on 31 October Sector breakdown as on 31 October 2010 Sector Fund Financials 32.4% Consumer Staples 14.3% Consumer Discretionary 13.7% Materials 12.7% Telecommunication Services 12.4% Energy 8.2% Industrials 3.0% Utilities 0.0% Health Care 0.0% Information Technology 0.0% Cash 3.3% Total 100.0% Performance as on 31 October 2010 JPM A (dist) USD 31/10/05 31/10/06 31/10/07 31/10/08 31/10/09 31/10/10 Past performance may or may not be JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund 8 November 2010 An open-ended Fund of Funds Scheme The primary investment objective of the Scheme is to provide long term capital appreciation 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. However, there can be no assurance that the investment objective of the Scheme will be realised. Rs. 5,000 per application and in multiples of Re. 1 Rs. 1,000 per application and in multiples of Re. 1 Fund manager 9 years 1 month Exit load 1.00% within 12 months from the date of allotment in respect of Purchase made other than through SIP Exit load (SIP) 1.00% within 12 months from the date of allotment in respect of each of the Purchase made through SIP MSCI EMEA (Total Return Net) Regular Growth: in future. Rs crore Portfolio Review: Sentiment remains generally weak around developed world prospects whereas optimism is widespread in emerging market equities. The reason is of course the persistence of very low nominal rates in developed markets with another round of money creation on the way with US quantitative easing. The seemingly inevitable consequence of this money flowing to the emerging world is inflation in asset prices (real estate & equities), consumer prices, or currencies, possibly all three. Central bankers have become quite vocal about the challenges they face as markets realign the global economy. Outlook: We do not yet see signs of a bubble in equities when we look objectively at valuations, particularly in EMEA which has lagged Asia and Latin America in every respect. Despite being fundamentally positive we are mindful of short term risks, primarily inflation. Turkey has performed well recently and is no longer the standout value opportunity it was at the beginning of the year. However, it is far from richly valued and the structural theme of disinflation and re-leveraging remains strong. In South Africa, strong rand has helped slow down inflation, which could pave the way for further rate cuts if deemed appropriate.

10 JPMorgan India Liquid Fund Holdings as on 30 November 2010 (in %) Name of the instrument Rating % to NAV Money Market Instruments Certificate Of Deposit Axis Bank P Indusind Bank P Punjab National Bank PR Allahabad Bank A Central Bank of India A Indusind Bank A UCO Bank P Federal Bank PR Oriental Bank of Commerce A Punjab & Sindh Bank A Certificate Of Deposit Total Commercial Paper Reliance Capital A Religare Finvest A ECL Finance A Commercial Paper Total Money Market Instruments Total Net Receivables/(Payables) 0.77 Total 0.77 Scheme returns as on 30 November 2010 Dividend details (Re / Unit) Record Date Gross Dividend CUM Dividend NAV Super Institutional Dividend - Monthly 27-Sep Oct Nov Retail Dividend - Monthly 27-Sep Oct Nov After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Returns Super CRISIL Liquid Retail CRISIL Liquid Institutional Growth Fund Index Growth Fund Index 7 days 0.13% 0.13% 0.13% 0.13% 15 days 0.29% 0.28% 0.28% 0.28% 30 days 0.61% 0.58% 0.60% 0.58% 3 months 1.66% 1.56% 1.61% 1.56% 1 year 5.39% 4.71% 5.17% 4.71% 3 year 6.84% 6.12% NA NA Since inception 6.90% 6.13% 6.00% 5.57% Note: The of the retail plan of the scheme is 16th September CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be 0.77% Rating profile A1+, P1+, PR % Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In days Super Institutional Growth Retail Growth % 0.55% *The assigned rating AAAf is valid only for "JPMorgan India Liquid Fund". The rating of CRISIL is not an opinion of the Asset Management Company's willingness or ability to make timely payment to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments % Certificate of Deposit Asset allocation (% of total) 33.53% Commercial Paper 0.77% Cash and Others JPMorgan India Liquid Fund Super Institutional - 21 September 2007 Retail - 16 September 2008 An open-ended liquid scheme The investment objective of the Scheme is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. However, there can be no assurance that the investment objectives of the Scheme will be realized. Fund manager & (in years) 20 9 Experience in managing this scheme 3 yrs, 2 months 2 yrs, 7 months Retail Plan Minimum initial application amount Rs. 5,000 per application and in multiples of Re. 1 Minimum additional application amount Rs per application and in multiples of Re. 1 Minimum Amount / No. of Units for Redemption Rs or 500 units Super-Institutional Plan Minimum initial application amount Rs. 1 Crore per application and in multiples of Re. 1 Minimum additional application amount Re. 1 per application and in multiples of Re. 1 Minimum Amount / No. of Units for Redemption Rs or 500 units Entry Load - Nil Entry Load (SIP) Nil Exit Load Nil Exit Load (SIP) Nil CRISIL Liquid Fund Index Super Institutional Growth Super Institutional Dividend - Daily Super Institutional Dividend - Weekly Super Institutional Dividend - Monthly Retail Growth Retail Dividend - Daily Retail Dividend - Weekly Retail Dividend - Forthnightly Retail Dividend - Monthly Rs crore

11 JPMorgan India Treasury Fund Holdings as on 30 November 2010 (in%) Name of the instrument Rating % to NAV Money Market Instruments Certificate Of Deposit Corporation Bank P Indusind Bank P Punjab National Bank P Oriental Bank of Commerce A Allahabad Bank A Oriental Bank of Commerce P IDBI Bank A Federal Bank P Central Bank of India A Indusind Bank A State Bank Of Patiala A Federal Bank PR Certificate Of Deposit Total Commercial Paper Religare Finvest A ECL Finance A Reliance Capital A Fullerton India Credit Co A Commercial Paper Total Money Market Instruments Total CBLO / Repo 0.98 Net Receivables/(Payables) 2.91 Total 3.89 Dividend details (Re / Unit) Record Date Gross Dividend CUM Dividend NAV Super Institutional Dividend - Monthly 27-Sep Oct Nov Retail Dividend - Monthly 27-Sep Oct Nov After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Commercial Paper Cash and others Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In days Super Institutional Growth Retail Growth % 0.75% **The assigned rating AAAf is valid only for "JPMorgan India Treasury Fund". The rating of CRISIL is not an opinion of the Asset Management Company's willingness or ability to make timely payment to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments. Please note that w.e.f. 18th February 2009, the name of JPMorgan India Liquid Plus Fund has been changed to JPMorgan India Treasury Fund % A1, P1+, PR1+ Asset allocation (% of total) 67.46% Certificate of deposit Rating profile 28.65% 96.11% Scheme returns as on 30 November 2010 Returns Super CRISIL Liquid Retail CRISIL Liquid Institutional Growth Fund Index Growth Fund Index 3 months 1.62% 1.56% 1.56% 1.56% 6 months 3.10% 2.91% 2.97% 2.91% 1 year 5.56% 4.71% 5.29% 4.71% 3 year 7.09% 6.12% NA NA Since inception 7.15% 6.13% 6.15% 5.57% Note: The of the retail plan of the scheme is 16th September CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be 3.89% JPMorgan India Treasury Fund Super Institutional - 21 September 2007 Retail - 16 September 2008 An open-ended income scheme The investment objective is to provide liquidity and optimal returns to the investors by investing primarily in a mix of short-term debt and money market instruments which results in a portfolio having marginally higher maturity and moderately higher credit risk as compared to a liquid fund, at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the Scheme will be realized. Fund manager & (in years) 20 9 Experience in managing this scheme 3 yrs, 2 months 2yrs, 7 months Retail Plan Minimum initial application amount Rs. 5,000 per application and in multiples of Re. 1 Minimum additional application amount Rs per application and in multiples of Re. 1 Minimum Amount/No. of Units for Redemption Rs or 500 units Super-Institutional Plan Minimum initial application amount Rs. 1 Crore per application and in multiples of Re. 1 Minimum additional application amount Re. 1 per application and in multiples of Re. 1 Minimum Amount/No. of Units for Redemption Rs or 500 units Entry Load - Nil Entry Load (SIP) Nil Exit Load Nil Exit Load (SIP) Nil CRISIL Liquid Fund Index Super Institutional Growth Super Institutional Dividend - Daily Super Institutional Dividend - Weekly Super Institutional Dividend - Monthly Retail Growth Retail Dividend - Daily Retail Dividend - Weekly Retail Dividend - Monthly Rs crore

12 JPMorgan India Active Bond Fund Holdings as on 30 November 2010 (in%) Name of the instrument % to NAV 8.26% GOI 2027 (MD 02/08/2027) Sovereign Govt Securities Total CBLO / Repo Net Receivables/(Payables) 3.36 Total Scheme returns as on 30 November 2010 NAV Returns CRISIL Composite Bond Fund Index Retail Growth Institutional Retail Growth Institutional Growth Growth 3 months 1.45% NA 1.22% NA 6 months 3.02% NA 1.92% NA 1 year 4.87% NA 4.52% NA Since inception 3.76% 0.76% 7.10% 0.59% Note: CAGR are given for more than one year. Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Dividend details (Re / Unit) Record Date Gross Dividend CUM Dividend NAV Retail Dividend 07-Oct Jan Institutional Dividend 07-Oct Jan After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be Sovereign 45.44% Rating profile 54.56% Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In years Institutional Growth Retail Growth % 2.00% #The assigned rating AAAf is valid only for "JPMorgan India Active Bond Fund". The rating of CRISIL is not an opinion of the Asset Management Company's willingness or ability to make timely payment to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments Asset allocation (% of total) 54.56% Government Secuities 45.44% JPMorgan India Active Bond Fund 27th June 2008 An open-ended income scheme To generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be realized. Retail Plan: Rs 5,000 per application and in multiples of Re 1 Institutional Plan: Rs. 1,00,00,000 per application and in multiples of Re. 1 Rs 1,000 per application and in multiples of Re 1 thereafter under both the plans. Fund manager & (in years) 20 9 Experience in managing this scheme 2 yrs, 5 months 2 yrs, 5 months Exit load - w.e.f. September 2, 2010 Retail plan: For any amount, if redeemed within one month of allotment of units: 0.25% Institutional plan: For any amount, if redeemed within one month of allotment of units: 0.25% Exit load (SIP)- only for retail plan - w.e.f. September 2, 2010 For any amount, if redeemed within one month of allotment of units: 0.25% CRISIL Composite Bond Fund Index Growth - Retail Dividend - Retail Growth - Institutional Rs crore

13 JPMorgan India Short Term Income Fund Holdings as on 30 November 2010 (in%) Name of the instrument Rating % to NAV Money Market Instruments Certificate Of Deposit Axis Bank P Punjab & Sindh Bank A State Bank Of Patiala A Dhanalaxmi Bank PR Certificate Of Deposit Total Commercial Paper Reliance Capital A Religare Finvest A Commercial Paper Total Money Market Instruments Total Govt Securities 8.26% GOI 2027 (MD 02/08/2027)Sovereign 3.34 Govt Securities Total 3.34 CBLO / Repo Net Receivables/(Payables) Total Note: Absolute returns of the growth option are computed for a period of less than one year. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In days % Scheme returns as on 30 November 2010 Return Scheme CRISIL Short Term Bond Fund Index 30 days 0.75% 0.42% 3 months 1.58% 1.18% 6 months 2.96% 2.09% Since inception 3.89% 3.16% Dividend details (Re / Unit) Asset allocation (% of total) 49.18% Certificate of Deposit 32.64% 14.84% Commercial Paper Rating profile A1+, P1+, PR1+, Sovereign Government Securities 67.36% 32.64% Record Date Gross Dividend CUM Dividend NAV Monthly Dividend 27-Sep Oct Nov After payment of dividend, the NAV will fall to the extent of dividend payout and statutory levy (if applicable). Past performance may or may not be #The assigned rating AAAf is valid only for "JPMorgan India Short Term Income Fund". The rating of CRISIL is not an opinion of the Asset Management Company's willingness or ability to make timely payment to the investor. The rating is also not an opinion on the stability of the NAV of the Fund, which could vary with market developments. JPMorgan India Short Term Income Fund 25th March 2010 An open-ended income scheme The investment objective is to generate income by investing primarily in money market and short term debt instruments.however, there can be no assurance that income can be generated, regular or otherwise or that the investment objective of the Scheme will be realised. Rs 5,000 per application and in multiples of Re 1 Rs 1,000 per application and in multiples of Re 1 Fund manager & (in years) 20 9 Experience in managing this scheme 8 months 8 months Exit load Within 15 days from the date of allotment in respect of Purchase made other than through SIP: 0.15% Within 15 days from the date of allotment in respect of each Purchase made through SIP: 0.15% CRISIL Short - Term Bond Fund Index Super Institutional Growth Super Institutional Dividend - Weekly Super Institutional Dividend - Forthnightly Super Institutional Dividend - Monthly Rs crore