Islamic Fund Servicing Global Islamic Solutions, delivered locally WORLDWIDE SECURITIES SERVICES
Meeting Islamic Asset Servicing Requirements J.P. Morgan Worldwide Securities Services Our comprehensive client offering supports the ever growing and evolving needs of our investors, fund managers and distributors globally and allows us to leverage our offering which includes investment fund compliance, fund accounting and custody, fiduciary and transfer agency services across Europe, Middle East, Africa and Asia. The J.P. Morgan Islamic service offering meets operational needs within the market covering Shari ah compliant securities and assets. Additionally we offer a comprehensive purification process to help cleanse dividend income or capital gains allowing our clients to channel all proceeds to various elected charities. The Muslim community is almost one quarter of the world s population but less than 1% of global financial assets are Shari ah compliant. This is beginning to change; as savings grow in important developed and developing markets across the globe, so investment funds specially tailored to Shari ah requirements are gaining momentum. The Shari ah compliant investment market is estimated to be growing at 15 to 20% per annum. Meeting Islamic Liquidity Management Requirements We offer an established liquidity management service whereby clients can actively manage residual or excess cash directly into Islamic compliant short-term liquidity product. The J.P. Morgan Agency Commodity Murabaha (ACM) product offering is designed to provide market-related returns on fixed-term investments in compliance with Islamic principles. Clients benefit from the flexibility of determining the currency as well as the term of the investment. Clients are able to continue operating and investing with the full assurance that the investment complies with Islamic investment principles as the product structure and documentation has been approved by Sheikh Nizam Yaquby, J.P. Morgan s Shari ah Advisor and one of the world s leading experts in Islamic Finance. All trades are conducted in Islamic compliant commodities and all purchases and sales are transacted with full transfer of title. Our offering is structured to optimise execution of transactions in a timely fashion. We arrange and pay for the purchase and sale of commodities with the market brokers on the client s behalf, thereby reducing the operational risk and cost in the client s organization which can contribute to improving the total economic return. We provide a dedicated trading desk that supports the clients and market brokers interactions allowing the client to have a consistent and easy-to-manage contact with J.P. Morgan. Our ACM product offering leverages J.P. Morgan s A-1+/P1 credit rating, since our product is structured so that the client sells the commodities to an entity of J.P. Morgan, the client will have the added assurance that comes from dealing with a sound financial partner.
Compliance Reporting Services We have over ten years experience in assisting clients in monitoring compliance with faith values. Traditionally, this was conducted by screening lists of companies by asset identifier, coding restrictions based on economic or industry sectors, or comparing portfolios to Shari ah benchmarks and highlighting exceptions. However, for the past two years we have sourced research data from leading financial risk providers, enabling us to provide enhanced screening methodologies, which integrate both top-down research on a company specific basis as well as bottom-up research on an issue basis. The research process focuses on primary source documentation, including reviews of company filings, corporate websites, policy statements and/or corporate social or environmental reports. Our Shari ah compliance capabilities include both financial and industry screens, but not limited to the following: Companies with primary Global Industry Classification codes: Consumer Finance, Specialized Finance, Multi-Sector Holdings, Other Diversified Financial Services, Thrifts & Mortgage Finance, Regional Banks, Diversified Banks Companies with industry ties* to alcohol, gaming, tobacco and other prohibited activities *The term ties relates to screening underlying business activity and its adherence to Islamic principles. Additionally, we can also compare client holdings to Shari ah benchmarks (subject to availability) via the Compliance Reporting Service and identify securities which fall outside of the benchmark. Investment Purification Our Fund Accounting services provides a well established and experienced purification service to help identify and cleanse income and capital that may have been derived from interest-based transactions or from other impure sources. Our Islamic Financial Solutions Team works closely with the various Shari ah index providers who, with the governance of their own Shari ah board, determine the allocated percentage for each security required to be purified. Following the client s review and agreement, we will accrue all impure income and channel the appropriate payment out of the fund to a nominated charity.
The Luxembourg and Irish Markets Luxembourg and Ireland are world-leading investment fund centres that offer global reach, industry maturity combined with a business friendly political environment, and an experienced and open-minded supervisory authority. This enables both countries to maintain an up-to-date and flexible legislative framework that is compatible with Islamic finance, and suitable for the creation of Shari ah compliant products. The UCITS global fund branding is freely marketable across Europe and increasingly popular in many non-european markets, making Luxembourg and Ireland the ideal location for the domiciliation of Shari ah compliant funds intended for global distribution to retail or institutional investors An established and growing hub for promoters keen to harness Luxembourg and Ireland s strengths and expertise in cross-border fund distribution of Shari ah compliant retail investment funds and insurance products Luxembourg and Ireland individually offer several investments vehicles to help structure Islamic funds within each of the domiciles: Luxembourg UCITS, UCI, SICAR, SIF, SOPARFI and Securitised Vehicles Ireland UCITS, Non UCITS, PIF s, QIFs Luxembourg and Ireland local market presence J.P. Morgan services 596 funds in Luxembourg with total net assets of US$ 387 billion, an unparalleled market share of 14%. In Ireland we administer 241 funds with assets of US$ 180 billion. (as at 31.05.2010). Operational centres of excellence Luxembourg Ireland UK Our Capabilities Our solutions offer a full range of wholesale financing and securities services products including: Global Custody Clearance and Settlement Shari ah Investment Monitoring and Reporting Fund Accounting Collateral Management Distribution Support Fund Services Investment Analytics Portfolio Transition Management
Our comprehensive client offering supports the ever growing and evolving needs of our investors.
Contact Information To find out more about how J.P. Morgan Islamic Finance Solutions can help your organisation, please contact: Asia Pacific Sam Lam Head of North Asia Sales Hong Kong Tel: +852-2800-0780 Email: sam.sf.lam@jpmorgan.com Angus St John Head of South Asia Sales Singapore Tel: +65-6882-7713 Email: angus.stjohn@jpmorgan.com Europe Middle East & North Africa Timothy Peters General Manager Abu Dhabi, UAE Tel: +971-2659-4063 Email: timothy.j.peters@jpmorgan.com US Robert Caporale Head of US Sales New York Tel: +1-212-552-4120 Email: robert.g.caporale@jpmorgan.com Huw Williams Head of Europe Sales Ireland, Luxembourg, UK, Tel: +44-207-777-5434 Email: huw.c.williams@jpmorgan.com www.jpmorgan.com/visit/wss 2010 JPMorgan Chase Bank, N.A. All rights reserved. This brochure contains a summary of the subject matter (and is subject to change without notice) and is provided solely for general information purposes. J.P. Morgan does not make any representation or warranty, whether expressed or implied, in relation to the completeness, accuracy, currency or reliability of the information contained in this brochure nor as to the legal, regulatory, financial or tax implications of the matters referred herein. This brochure does not constitute a solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. Issued and approved for distribution in the United Kingdom and the European Economic Area by J.P. Morgan Europe Limited. In the United Kingdom, JPMorgan Chase Bank, N.A., London branch and J.P. Morgan Europe Limited are authorized and regulated by the Financial Services Authority.