Month ending Septe mber, Fund Facts

Transcription

1 Month ending Septe mber, 2008 Fund Facts

2 Equity and debt review D) Equity review After two months of gains, Indian equities tumbled in the month of September. Through the month, the Sensex lost 11.7% while a broader BSE200 index dropped by 12.7%. Smaller companies bore the brunt of the correction with the CNX Midcap index declining as much as 14.2%. With this fall, the Sensex has now shed about 37% YTD while the CNX Midcap is down about 47%. India is perhaps the worst performing major emerging market, with the MSCI India losing 50% in dollar terms, higher than a 46% drop for China and a 47% drop for Russia. The major driver of the market was very weak sentiments caused by growing turmoil in the financial markets in the US and Europe and fear about how bad things could get from here. On a relative basis, consumer and energy sectors out-performed the broader market. Domestically driven and relatively defensive consumer staples and discretionary stocks did well through the month. Oil PSU stocks also did well due to falling crude oil prices and expectations of reduced strain on their cash flows. Materials and IT companies under-performed the market. Stocks of commodity companies, mainly global commodities, corrected more due to the continued uncertainty over global growth outlook. Predictably, IT services companies under-performed as their key clients in developed economies continued to face uncertain prospects. On the macro front, September proved a mixed bag. The WPI Inflation at 12.14% (week ending September 13th) and industrial production growth at 7.1% YoY was better than expected. On the negative side, current account deficit (April-June quarter) widened to US$10.7bn or 3.6% of the GDP. Capital flows also slowed significantly putting a pressure on an overall balance of payment situation. However, going forward, softening of crude oil prices and increased domestic production of hydrocarbon from Reliance and Cairn over the next year should help improve balance of payment as well as fiscal situation. In September focus of the attention was clearly on events unfolding in international financial sector rather than domestic activity. Fear and panic was evident as several prominent financial sector firms faced rough weather while regulators and politicians worked round the clock to help find solutions. While the $700bn bailout package has been passed by the US Senate and the Congress, a quick resolution to the problems looks unlikely. It is also evident for a while now that its effects have spread both in extent and scope. We therefore maintain that the behavior of Indian equities will be subjected to global uncertainties over the next few months given the continuing risk aversion. The key thing to watch out for in the next month is the performance of Indian corporates in the quarter ending September '08. We expect to see more evidence of deceleration and possible stress from credit market conditions. Even after taking into account the impending EPS downgrades, we believe valuations are already in the attractive territory. As we have maintained it is very difficult to predict when exactly markets would bottom out as it would remain a function of improvement in risk appetite and liquidity flows. Nevertheless, we believe that in all likelihood, systematic and disciplined investment in these times will lead to significant payoffs in the medium term. Debt review The month of September was a mixed one for the fixed income markets. The 10 year benchmark government bond rallied in the first half of the month and yields touched a low of many weeks. However, it gave up all the gains in the second half of the month and yields touched 8.66% due to tight liquidity conditions and surprise additional borrowing of Rs.10, 000 crores towards the end of September. The liquidity condition was very tight in the second half of the month due to the quarterly advance tax payment, dollar selling by the RBI and additional G-Sec borrowing. The RBI announced various measures to provide additional liquidity to the system such as additional liquidity to the extent of up to 1% of their net demand and time liabilities (NDTL) and second liquidity adjustment facility during the day. The net average borrowing by the Scheduled Commercial Bank from the RBI amounted to approximately Rs.68,000 crores during the month. Call rates moved in the range of 11% - 17%. The WPI touched a 3 month low at 11.99% for the week ended 20 September vs % the previous week. The Primary articles index was down 11.29% vs 11.56% in the previous week, manufactured products index was down 10.55% vs 10.61% in the previous week, while the fuel price index was down 16.52% vs 16.66%.On a week-on-week basis, the WPI index was down by 1 point to 241. The government would borrow Rs.39,000 crores in second half of as per the borrowing calendar. The actual GOI Borrowing during the corresponding period last year was substantially higher at Rs 59,000 crores. The entire borrowing will be done in the 3rd quarter of Any increase in the fiscal deficit due to farm debt waiver, sixth Pay commission, and oil and food subsidies will largely be offset by buoyancy in tax revenues collection, disinvestment and 3G auctions. We expect an additional supply of around Rs.20,000 crores Rs.25,000 crores to hit the market in the last quarter of This would be easily absorbed due to the strong demand from the banking and insurance sector. We expect liquidity to ease in the next few weeks as the advance tax payment and repayment of the farm debt waiver will enter the banking system and as the Government starts spending. Therefore, the money markets rates, which have increased substantially in the last few weeks, will ease in the next few weeks. We expect the inflation to be around 12% for the next few weeks before moving lower. Lower commodity prices, a drop in oil prices and an overall global slowdown will bring the inflation lower in the next few months. In the October '08 Monetary Policy Review, we do not expect the RBI to change the policy rates. However, we expect the RBI to be very vigilant and proactive on the liquidity management front. The overall stance of the policy would be towards a higher priority to price stability, well-anchored inflation expectations and active liquidity management. -08

3 JPMorgan India Equity Fund Holdings as on 30 September 2008 (in %) Reliance Industries 6.34 HDFC 5.82 Bharti Airtel 4.77 Larsen & Toubro 4.62 ITC 3.38 HDFC Bank 3.24 BHEL 2.32 Infosys Technologies 2.18 Nestle India 2.03 Hindustan UniLever 1.87 Axis Bank 1.80 Oil & Natural Gas Corporation 1.77 Sun Pharmaceutical Industries 1.69 Divis Laboratories 1.50 Educomp Solutions 1.48 Total of top 15 stocks Reliance Communications 1.44 Shriram Transport Finance Co 1.25 Tata Power Co Titan Industries 1.23 Jubilant Organosys 1.21 Reliance Capital 1.18 Max India 1.16 Sterlite Industries 1.05 Sintex Industries 1.04 Jyoti Structures 1.03 Jindal Steel & Power 0.97 Reliance Infrastructure 0.95 Crompton Greaves 0.95 ABB 0.87 Aban Offshore 0.80 Exide Industries 0.78 Welspun Guj Stahl Rohren 0.74 Cairn India 0.68 Financial Technologies 0.68 Jaiprakash Associates 0.64 Elecon Engineering 0.53 Jain Irrigation Systems 0.49 Everonn Systems India 0.46 Voltas 0.41 Glenmark Pharmaceuticals 0.39 Bharati Shipyard 0.36 Gujarat NRE Coke 0.18 Equity shares total Cash and others Total Total equity (including derivatives) Auto Metals/Minerals Sector Portfolio analysis: Sector-wise Utilities Pharma Telecom Technology Consumer Oil & Gas Industrials/Infra* Financials 0.78% 2.9% 3.2% 4.8% 6.2% 7.9% 10.1% % of portfolio 12.7% 14.1% 0% 2% 8% 12% 16% 20% *Includes industrial capital goods / diversified / construction / industrial products. 20.0% Scheme returns as on 30 September 2008 Scheme BSE-200 Since Inception -9.51% -7.82% 1 month % % 6 months % % 1 year % % 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 sustained in future. Active positive bets Total Stocks 42 Top % Total portfolio 26.00% Note: Active positive bets are those where the fund has a higher weightage as compared to the benchmark index (BSE-200). Source: BSE, Bloomberg. Weightage v/s BSE-200 Overweight Underweight Consumer Cement Industrials / Infra Auto Pharma Metals/Minerals Utilities Oil & Gas Technology Source: BSE, Bloomberg. 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 sustained in future. Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 2.07% % of total portfolio 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Quantitative indicators Standard deviation (%) Beta 0.92 Sharpe ratio (Monthly) Total portfolio turnover ratio 5.62 (including equity, equity related instruments and short term fixed income instruments) Liquidity measures 82.9% 6.0% 2.4% 8.7% < >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. Name of the scheme JPMorgan India Equity Fund Allotment date 14 June 2007 Scheme structure An open-ended equity growth scheme Investment objective 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 Minimum investment amount Rs.5,000 per application plus in multiples of Rs.1/- thereof Additional investment amount Rs.1,000 per application plus in multiples of Rs.1/- thereof Fund managers: Equity Harshad Patwardhan & Amit Gadgil (years) Harshad Patwardhan 14 Amit Gadgil 6 Experience managing the scheme Harshad Patwardhan 15 months Amit Gadgil 15 months Fund managers: Debt (years) Nandkumar Surti 17 Namdev Chougule 7 Experience managing the scheme Nandkumar Surti 8 months Namdev Chougule 5 months Entry load Nil for purchase applications received directly: 2.25% upto Rs.5 crores; Nil for Rs.5 crores and above Exit load 1% within six months from the date of allotment in respect of purchase made other than through SIP Exit load (SIP) 1% within 24 months from the date of allotment in respect of the first purchase made through SIP Benchmark BSE-200 Index NAV (as at 30 September 2008, in Rs.) Growth: Dividend: Past performance may or may not be sustained in future. AUM as on 30 September 2008 Rs crore

4 JPMorgan India Smaller Companies Fund Holdings as on 30 September 2008 (in %) Scheme returns as on 30 September 2008 Scheme CNX- Mid Cap Since inception % % 1 month % % 6 months % % Shiv-Vani Oil & Gas Exploration Services 3.49 Jubilant Organosys 3.19 Divis Laboratories 3.12 Glenmark Pharmaceuticals 3.11 Max India 3.01 Advanta India 2.88 Bombay Rayon Fashions 2.85 Everest Kanto Cylinder 2.74 Shriram Transport Finance Co 2.57 Onmobile Global 2.53 Thermax India 2.52 Titan Industries 2.34 Gujarat Fluorochemicals 2.13 Simplex Infrastrutcure 2.10 Sintex Industries 2.04 Total of top 15 stocks Everonn Systems India 1.99 Balkrishna Industries 1.95 Exide Industries 1.94 Jyoti Structures 1.92 Lakshmi Energy And Foods 1.92 Welspun Guj Stahl Rohren 1.88 Indian Overseas Bank 1.77 Time Technoplast 1.75 Eicher Motors 1.62 Jain Irrigation Systems 1.52 Bharati Shipyard 1.46 Techno Elec & Engineering Co 1.44 Educomp Solutions 1.32 GVK Power & Infrastructure 1.29 Colgate-Palmolive (India) 1.26 SREI Infrastructure Finance 1.23 Rain Commodities 1.15 Elecon Engineering 1.15 Emami 1.09 Consolidated Const. Consortium 1.09 Usha Martin 0.99 Kaveri Seed Company 0.98 IRB Infrastructure Developers 0.93 Voltas 0.89 Ess Dee Aluminium 0.86 Financial Technologies India 0.85 Aban Offshore 0.84 Kalindee Rail Nirman Engineers 0.81 Gujarat NRE Coke 0.79 NIIT 0.63 KLG Systel 0.59 Redington India 0.49 ICSA India 0.44 Pantaloon Retail (India) 0.19 Equity shares total Cash and others Total Total equity (including derivatives) Quantitative indicators Standard deviation (%) 9.55 Beta 0.71 Sharpe ratio (monthly) Total expense ratio (year-to-date ratio to average AUM) Total expense ratio 2.28% Note: Absolute returns of the growth option are computed. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be sustained in future. Active positive bets Total stocks in portfolio 49 Top 15 stocks 25.34% Total portfolio 64.74% 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. Weightage v/s CNX-Mid Cap Overweight Underweight Industrials/ Infra Financials Oil & Gas Pharma Technology Cement Utilities Metals & Minerals Telecom Consumer Auto Source: BSE, Bloomberg. % of total portfolio 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Portfolio analysis: Sector-wise Cement Telecom Metals/Minerals Sector Utilities Auto Technology Oil & Gas Pharma Financials Consumer Industrials/Infra* 23.5% 1.2% 2.5% 3.7% 4.6% 5.5% 6.3% % of portfolio * Includes industrial capital goods / diversified / construction / industrial products. Liquidity measures 16.1% 9.0% 9.4% 10.9% 14.4% 12.4% 48.0% < >5 22.0% 0% 4% 8% 12% 16% 20% 24% 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. Name of the scheme JPMorgan India Smaller Companies Fund Allotment date 26 December 2007 Scheme structure An open ended equity growth scheme Investment objective 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. Minimum investment amount Rs 5,000 per application plus in multiples of Re. 1/- thereafter Additional investment amount Rs 1,000 per application plus in multiples of Re. 1/- thereafter Fund managers: Equity Harshad Patwardhan & Amit Gadgil (years) Harshad Patwardhan 14 Amit Gadgil 6 Experience managing the scheme Harshad Patwardhan 9 months Amit Gadgil 9 months Fund managers: Debt (years) Nandkumar Surti 17 Namdev Chougule 7 Experience managing the scheme Nandkumar Surti 8 months Namdev Chougule 5 months Entry load Nil for purchase applications received directly: 2.25% upto Rs.5 crores; Nil for Rs.5 crores and above Exit load 1% within six months from the date of allotment in respect of purchase made other than through SIP Exit load (SIP) 1% within 24 months from the date of allotment in respect of the first purchase made through SIP Benchmark ***CNX Mid Cap NAV (as at 30 September 2008, in Rs.) Growth: Dividend: Past performance may or may not be sustained in future. AUM as on 30 September 2008 Rs crore Note: Portfolio turnover has not been given since the scheme has not completed 12 months.

5 JPMorgan India Liquid Fund Holdings as on 30 September 2008 (in%) Name of the instrument Rating % to NAV Debt instruments Floating rate note Birla Global Finance A Kotak Mahindra Prime P Piramal Healthcare A Hero Cycles P Floating rate note total Non-convertible debentures Investsmart Financial Services A Non-convertible debentures total 7.17 Total of debt instruments Money market instruments Certificate of deposit ICICI Bank A ING Vysya Bank P State Bank of Mysore A IDBI P Indian Overseas Bank P Certificate of deposit total Total of money market instruments CASH & OTHER RECEIVABLES (a) CBLO /REPO 0.54 (b) Net receivables/(payables) 0.63 Total of others 1.16 Total Scheme returns as on 30 September 2008 Returns Super Institutional Retail Growth Crisil Liquid Fund Index Since inception 8.55% 0.38%* 7.43% 7 days 0.22% 0.21%* 0.18% 15 days 0.46% NA 0.36% 30 days 0.88% NA 0.79% 3 months 2.37% NA 2.15% 6 months 4.45% NA 3.96% 1 year 8.57% NA 7.48% 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 sustained in future. *The Allotment date of the retail plan of the scheme is 16th September Dividend Details Record Date Individual Corporate CUM Dividend NAV 25-Jul Aug Sep 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 sustained in future. Rating profile P1+/A1+ Cash / Repo / Net receivables Asset allocation (% of total) 50.17% Floating rate note 41.50% Certificate of deposit 7.17% Non-convertible debentures 1.16% Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In % In days Super Institutional Growth Retail Growth % 0.03% Others Name of the scheme JPMorgan India Liquid Fund Allotment date Super Institutional - 21 September 2007 Retail - 16 September 2008 Scheme structure An open-ended liquid scheme Investment objective 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) Nandkumar Surti 17 Namdev Chougule 7 Experience in managing this scheme Nandkumar Surti 12 months Namdev Chougule 5 months Retail Plan Minimum initial application amount Rs. 5,000 per application and in multiples of Re. 1 thereafter. Minimum additional application amount Rs per application and in multiples of Re. 1 thereafter. 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 thereafter. Minimum additional application amount Rs. 10,00,000 per application and in multiples of Re. 1 thereafter. 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 Benchmark Crisil Liquid Fund Index NAV (as at 30 September 2008, in Rs.) Super Institutional Growth Super Institutional Dividend-Daily Super Institutional Dividend-Weekly Super Institutional Dividend-Monthly Retail Growth Retail Dividend - Daily Past performance may or may not be sustained in future. AUM as on 30 September 2008 Rs crore *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.

6 JPMorgan India Liquid Plus Fund Holdings as on 30 September 2008 (in %) Name of the instrument Rating % to NAV Debt instruments Non-convertible debentures GE Capital Services India AAA 8.19 Sundaram Finance AA Non-convertible debentures total 9.83 Floating rate note Hero Cycles P Fullerton India Credit Co. A Shriram Transport Finance Co F1+(IND) 1.68 Floating rate note total 8.57 Total of debt instruments Money market instruments Certificate of deposit ICICI Bank A State Bank of Bikaner & Jaipur P State Bank of Travancore P State Bank of Patiala A Oriental Bank of Commerce P IDBI P State Bank of Mysore A Certificate of deposit total Commercial paper Reliance Capital A Adlabs Films A Cholamandalam DBS Finance P Fullerton India Credit Co. A IL&FS Financial Services PR Export Import Bank of India P Reliance Infratel A Commercial paper total Total of money market instruments CASH & OTHER RECEIVABLES (a) CBLO /REPO 0.08 (b) Net receivables/(payables) Total of others Total Scheme returns as on 30 September 2008 Returns Super Institutional Retail Growth Crisil Liquid Fund Index Since inception 8.87% 0.33%* 7.41% 6 months 4.46% NA 3.92% 1 year 8.88% NA 7.47% 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 sustained in future. *The Allotment date of the retail plan of the scheme is 16th September Dividend details Record Date Individual Corporate CUM Dividend NAV 25-Jul Aug Sep 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 sustained in future. Rating profile A1+/P1+/AA+/AAA/PR1+/F1+(IND) Cash / Repo / Net receivables % Certificate of deposit Asset allocation (% of total) 34.50% Commercial Paper Floating rate note Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In % In days Super Institutional Growth Retail Growth % 0.04% 9.83% Non-convertible debentures 8.57% -1.04% Others Name of the scheme JPMorgan India Liquid Plus Fund Allotment date Super Institutional - 21 September 2007 Retail - 16 September 2008 Scheme structure An open-ended income scheme Investment objective 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. Minimum investment amount Rs.5,000 per application and in multiples of Re.1 thereafter Additional investment amount Rs.5,000 per application and in multiples of Re.1 thereafter Fund manager (in years) Nandkumar Surti 17 Namdev Chougule 7 Experience in managing this scheme Nandkumar Surti 12 months Namdev Chougule 5 months Retail Plan Minimum initial application amount Rs. 5,000 per application and in multiples of Re. 1 thereafter. Minimum additional application amount Rs per application and in multiples of Re. 1 thereafter. 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 thereafter. Minimum additional application amount Rs. 10,00,000 per application and in multiples of Re. 1 thereafter. 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 Benchmark Crisil Liquid Fund Index NAV (as at 29 September 2008, in Rs.) Super Institutional Growth Super Institutional Dividend - Daily Super Institutional Dividend - Weekly Super Institutional Dividend - Forthnightly Super Institutional Dividend - Monthly Retail Growth Retail Dividend - Daily Retail Dividend - Weekly Retail Dividend - Monthly Past performance may or may not be sustained in future. AUM as on 30 September 2008 Rs crore **The assigned rating AAAf is valid only for "JPMorgan India Liquid Plus 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.

7 JPMorgan India Active Bond Fund Holdings as on 30 September 2008 (in %) Name of the instrument Rating % to NAV Debt instruments Non-convertible debentures Investsmart Financial Services A BHW Home Finance AA+(IND) 6.30 Rabo India Finance P Power Finance Corporation AAA 6.25 Indian Railway Finance Corpn. AAA 3.76 Non-convertible debentures total Floating rate note Fullerton India Credit Co. A Hero Cycles Ltd. P Birla Global Finance A Piramal Healthcare A Kotak Mahindra Prime P Floating rate note total Total of debt instruments Government securities 8.28% GOI (MD 15/02/2032) Sovereign % GOI 2032 (28/08/2032) Sovereign 3.31 Total of government securities 6.70 Money market instruments Certificate of deposit Oriental Bank of Commerce P State Bank of Travancore P Punjab National Bank A State Bank of Mysore A Certificate of deposit total Commercial paper PNB Housing Finance P Reliance Capital A Rabo India Finance P Commercial paper total Total of money market instruments Total of others 0.47 Total Scheme returns as on 30 September 2008 Returns Growth Institutional Growth CRISIL Composite Bond Fund Index Since inception 2.25% 2.47% 1.14% Note: Absolute returns of the growth option are computed. Since inception returns are calculated on Rs. 10/- invested at inception. Past performance may or may not be sustained in future Rating profile A1+/P1+/PR1+/AA+(IND)/AAA Cash / Repo / Net receivables Sovereign % Non-convertible debentures Asset allocation (% of total) 23.66% Commercial Paper 19.64% Modified duration Average maturity Total expense ratio (year-to-date ratio to average AUM) In % In years Institutional Growth Retail Growth % 1.80% Floating rate note 18.11% Certificate of deposit 6.70% Government securities 0.47% Others Name of the scheme JPMorgan India Active Bond Fund Allotment date 27th June 2008 Scheme structure An open-ended income scheme Investment objective 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. Minimum investment amount Retail Plan: Rs 5,000 per application and in multiples of Re 1 thereafter. Institutional Plan: Rs. 1,00,00,000 per application and in multiples of Re. 1 thereafter. Additional investment amount Rs 1,000 per application and in multiples of Re 1 thereafter under both the plans. Fund managers: Fund manager (in years) Nandkumar Surti 17 Namdev Chougule 7 Experience in managing this scheme Nandkumar Surti 3 month Namdev Chougule 3 month Entry load Retail Plan / Institutional Plan: Nil. Exit load Retail Plan: For any amount up to Rs. 10 lakhs if redeemed within six months of allotment of Units: 0.50% For any amount more than Rs. 10 lakhs if redeemed within three months 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 Entry Load: Nil. Exit load : Retail Plan: For any amount up to Rs. 10 lakhs if redeemed within six months of allotment of Units: 0.50%. For any amount more than Rs. 10 lakhs if redeemed within three months of allotment of Units: 0.25%. Benchmark CRISIL Composite Bond Fund Index NAV (as at 29 September 2008, in Rs.) Retail Growth Retail Dividend Institutional Growth Institutional Dividend AUM as on 30 September 2008 Rs crore #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.

8 Asset allocation pattern: JPMIEF: Equity and equity-related instruments % Debt and money market instruments 0-35%. JPMILF: Money market instruments (including cash and reverse repo and debt instruments with a residual maturity of less than 182 days) Upto 100 %; Securitised debt instruments with a residual average maturity of less than 182 days Upto 30 % & Debt instruments and securitised debt instruments with a residual average maturity of more than 182 days but less than 1 year - Less than 10 % (* Investment in Derivatives Up to 50% of the net asset of the Scheme).Smaller Companies Fund JPMILPF: Money Market & Debt instruments with maturity / average maturity / interest rate reset not greater that 1 year 70% - 100% and Debt instruments with maturity greater than 1 year but less than 3 years* %. JPMISCF: Equity and equity related securities of Smaller Companies %, Equity and equity related securities of companies other than Smaller Companies % & Debt and money market instruments 0-35%. * Includes investments in equity and equity related securities issued by domestic companies; including derivatives traded on the Futures and Options segment of Indian stock exchanges not exceeding 50% of the net assets of the Scheme, offshore securities, ADRs and GDRs not exceeding 50% of the net assets of the Scheme. Investment in securitised debt may be made to the extent of 20% of net assets of the Scheme. JPMIABF: For both Retail Plan & Institutional Plan: Money Market & Debt instruments with maturity /average maturity / interest rate reset not greater than one year 10% - 100% and Debt* instruments including government securities and corporate Debt 0% - 90%. *Debt instruments include securitised debt. Securitised debt (excluding foreign securitised debt) can be up to 50% of the net assets of the scheme. Investment in derivatives also up to 50% of the net asset of the Scheme Minimum additional / SIP application: Rs. 1,000 per application (and in multiples of Re. 1 thereof) for JPMIEF and JPMISCF and JPMIABF (Retail Plan only); and Rs per application and in multiples of Re. 1 thereafter in case of JPMILF & JPMILPF. Risk Factors: Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee against loss in the Scheme or that the Scheme's objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. Past performance of the Sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. JPMorgan India Equity Fund, JPMorgan India Liquid Fund, JPMorgan India Liquid Plus Fund, JPMorgan India Smaller Companies Fund and JPMorgan India Active Bond Fund are only the name of the respective schemes and they do not in any manner indicate the quality of the Scheme(s) or their future prospects and returns. Mutual funds invest in securities which may not always be profitable and there can be no guarantee against loss resulting from investing in the Scheme. The Scheme's value may be impacted by fluctuations in the bond markets, fluctuations in interest rates, prevailing political, economic and social environments, changes in government policies and other factors specific to the issuer of the securities, tax Laws, liquidity of the underlying instruments, settlement periods, trading volumes, etc. Redemptions due to a change in the fundamental attributes of the Scheme or due to any other reason may entail tax consequences. Such tax shall be borne by the investor and the Mutual Fund shall not be liable for any tax consequences that may arise. For scheme specific risk factors, please refer to the Offer Document. Terms of Issue and Mode of Sale: Issue of Units of Rs. 10 per Unit at the Applicable Net Asset Value (NAV) subject to applicable Entry and Exit Loads / Contingent Deferred Sales Load (CDSL) thereafter. Investor benefit and General services: NAVs will be calculated on all business days and published in at least two daily newspapers. Purchase/redemption on all business days. For liquid scheme, the NAVs will be calculated on all calendar days and published on all business days in at least two daily newspapers. Statutory details: Sponsor: JPMorgan Asset Management (Asia) Inc. Trustee: JPMorgan Mutual Fund India Private Limited, a company incorporated under the Companies Act, Asset Management Company: JPMorgan Asset Management India Private Limited, a company incorporated under the Companies Act, JPMorgan Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, by JPMorgan Asset Management (Asia) Inc., liability restricted to initial contribution of Rs1 lakh. Please refer to the Offer Document before investing. Offer Documents, Key Information Memorandum and application forms are available at Investor Service Centres and distributors. *** The JPMorgan India Smaller Companies Fund ( Product ) is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL makes no representation or warranty, express or implied to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the CNX Midcap Index to track general stock market performance in India. The relationship of IISL to the JPMorgan Asset Management India Pvt. Ltd. is in respect of the using of the trade name and the trade name of CNX Midcap Index for benchmarking purposes, which is determined, composed and calculated by IISL without regard to the JPMorgan Asset Management India Pvt. Ltd or the Product. IISL has no obligation to take the needs of JPMorgan Asset Management India Pvt. Ltd. or the owners of the Product into consideration in determining, composing or calculating the CNX Midcap Index. IISL is not responsible for nor has participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in determination or calculation of the equation by which the product is to be converted into cash. IISL has no obligation or liability in connection with the administration, marketing or trading of the Product. IISL does not guarantee the accuracy and/or the completeness of the CNX Midcap Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL makes no warranty, express or implied, as to the results to be obtained by the Principal JPMorgan Asset Management India Pvt. Ltd., owners of the Product, or any other persons or entities from the use of the CNX Midcap Index or any data included therein. IISL makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the CNX Midcap Index or any data included therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages. Registered office: JPMorgan Asset Management India Private Limited Kalpataru Synergy, 3rd Floor, West Wing, Santacruz (East), Mumbai Tel.: Website: Toll free number: (JPMF) Tel.: Ahmedabad : 302, Megha House, Near Law Garden, Mithakhali Six Road, Navrangpura, Ahmedabad Bengaluru : 501, 5th Floor, Prestige Centre Point, 7, Cunningham Road, Bengaluru Tel.: /71/72. Chennai : T V Loganathan Towers, 2nd Floor, No. 95, V. M. Street, R.K. Salai, Mylapore, Chennai Tel.: Kolkata : 22 Camac Street, Block-B, 5th Floor, Kolkata Tel.: Fax: Mumbai : Kalpataru Synergy, 3rd Floor, West Wing, Santacruz (East), Mumbai Tel.: New Delhi : , 7th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi Tel.: Pune : Office No. 301, Nandadeep, Above Odyssey Shop, F.C. Rd., Shivajinagar, Pune Tel.: / 01

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