The new fund offer opens for subscription on 16th June and closes on 30th June.
JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund.
The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release.
Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, “Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-awaited earnings recovery. Encouragingly, there are some tentative signs that this EM recovery is unfolding, albeit gradually. EM is now attractively priced both in relative to its own history as well as against DM, offering a very attractive entry point for investors in India.”
Despite the modest decline over the past several years, emerging markets are considerably independent of developed markets with growing trade possibilities. The earnings per share and dividend per share have also surpassed significantly those of developed markets. With a contribution of over 50% of global GDP, this is an attractive time for investment in emerging markets, said the release.
Nandkumar Surti, MD & CEO, JPMAM India said, “Developed markets continue to exhibit stable to strong growth. It’s only a matter of time before this has a positive effect on emerging market economies. The fundamentals for emerging markets are already there. The only missing ingredient is earnings growth. The earnings growth should now start coming, given the linkages to the developed world. We want to be early in the market to allow investors an opportunity to invest at relatively attractive valuations.”
The new fund offer opens for subscription on 16th June and closes on 30th June.
Benchmarked against Morgan Stanley Capital International (MSCI) Emerging Markets Index, the fund will charge an exit load of 1% if units are redeemed before one year from the date of allotment. The minimum application amount is Rs. 5,000.
JP Morgan Mutual Fund manages Rs. 16,248 crore as on March 2014.
