Jp morgan mutual fund common application form with kim

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JPMorgan Mutual Fund Common Application Form with KIM

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Jp morgan mutual fund common application form with kim

  1. 1. Common Application FormCommon Key Information Memorandum and Application FormContinuous offer of Units of R 10 per Unit at Net Asset Value (NAV) based prices, subject to applicable load thereafter.Scheme names:JPMorgan India Equity Fund (an open-ended equity growth scheme)JPMorgan India Liquid Fund (an open-ended liquid scheme)JPMorgan India Treasury Fund (an open ended income scheme)JPMorgan India Smaller Companies Fund (an open-ended equity growth scheme)JPMorgan India Active Bond Fund (an open-ended income scheme)JPMorgan India Tax Advantage Fund (an open-ended equity linked savings scheme)JPMorgan JF Greater China Equity Off-shore Fund (an open ended fund of funds scheme)JPMorgan India Short Term Income Fund (an open ended Income scheme)JPMorgan Emerging Europe, Middle East and Africa Equity-Off-shore Fund (an open ended fund of funds scheme)Sponsor: JPMorgan Asset Management (Asia) Inc.Correspondence Office: 21/F, Chater House, 8 Connaught Place Central, Hong Kong.Trustee: JPMorgan Mutual Fund India Private Limited,Registered Office: J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz - East, Mumbai - 400 098.Asset Management Company: JPMorgan Asset Management India Private Limited,Registered Office: J. P. Morgan Tower, Off C.S.T. Road, Kalina, Santacruz - East, Mumbai - 400 098. Asset Managers to JPMorgan Mutual FundThis Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of theScheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations etc. investorsshould, before investment, refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) available free of cost at any of the InvestorService Centres or distributors or from the website www.jpmorganmf.com.The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, andhave been filed with the Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI,nor has SEBI certified the accuracy or adequacy of this KIM.This memorandum is dated : April 25, 2011.
  2. 2. TABLE OF CONTENTS Page No.JPMorgan India Equity Fund .............................................................................................................................................................................. 1JPMorgan India Liquid Fund .............................................................................................................................................................................. 3JPMorgan India Treasury Fund .......................................................................................................................................................................... 6JPMorgan India Smaller Companies Fund ........................................................................................................................................................ 8JPMorgan India Active Bond Fund .................................................................................................................................................................... 11JPMorgan India Tax Advantage Fund ................................................................................................................................................................ 13JPMorgan JF Greater China Equity Off-shore Fund .......................................................................................................................................... 16JPMorgan India Short Term Income Fund ........................................................................................................................................................ 18JPMorgan Emerging Europe, Middle East and Africa Equity Off-shore Fund ................................................................................................ 21Comparison Between the Schemes ................................................................................................................................................................... 24Common Features for all Schemes ................................................................................................................................................................... 26Instructions & Notes ........................................................................................................................................................................................... 32Common Application Form ................................................................................................................................................................................ 35ECS Registration Cum Mandate Application Form ........................................................................................................................................... 37STP / SWP Enrolment Form ............................................................................................................................................................................... 39Form for Nomination / Cancellation of Nomination ........................................................................................................................................ 41Multiple Bank Accounts Registration Form ...................................................................................................................................................... 43 48
  3. 3. JPMORGAN INDIA EQUITY FUND Risk and Description Risk Mitigants / Management Strategy specific to Equities#NAME OF THE SCHEME understanding of the business is arrived at,JPMorgan India Equity Fund. enabling the identification of future long-term winners at an early stage.TYPE OF SCHEME Concentration Risk Portfolio construction is the responsibility of theAn open-ended equity growth scheme. investment manager assigned to each fund.INVESTMENT OBJECTIVE There are three objectives to the portfolioThe investment objective of the Scheme is to generate income and long-term construction process:capital growth from a diversified portfolio of predominantly equity and equity- (i) to capture and preserve value from all the bestrelated securities including equity derivatives. ideas by country specialists;However, there can be no assurance that the investment objective of the (ii) to ensure no single decision will derailScheme will be realised. performance; and (iii) to deliver in line with the funds risk/returnASSET ALLOCATION PATTERN profiles.Under normal circumstances, it is anticipated that the asset allocation shall Portfolios are constructed using a disciplinedbe as follows: and tailored approach, and there is a high degree of commonality across accounts with Instrument Normal allocation Risk similar objectives and profiles. During the (% of net assets) profile process, the investment manager assigns a Equity and equity related securities* 65 - 100% Medium to High target percentage weight based upon variations, positive or negative, from the Debt and money market instruments 0 - 35% Low to Medium predetermined fund benchmark weight.* Includes investments in equity and equity related securities issued by Investment managers may also incorporate domestic companies; including derivatives traded on the Futures and their own views on individual stocks and Options segment of Indian stock exchanges not exceeding 50% of the net exercise discretion to align with the above assets of the Scheme, offshore securities, ADRs and GDRs not exceeding guidelines with the objective that is likely to 10% of the net assets of the Scheme as on March 31 of each relevant year. be achieved by inclusion of the stock in a fund Investment in securitised debt may be made to the extent of 20% of net portfolio. The investment manager will also assets of the Scheme. reconcile any other anomalies between the stock rankings and portfolio requirements withRISK MITIGATION FACTORS the overall objective of adding value to the fundRisk and Description Risk Mitigants / Management Strategy portfolio.specific to Equities# The Risk Management / Middle Office oversees investment managers to ensure compliance withQuality Risk The stock selection process is an important part the funds internal requirements. The buy / sellRisk of investing in of the idea generation stage, as it provides the decisions generated at the portfolio constructionunsustainable / weak greater part of added value to the investments. stage of the process are automatically checkedcompanies Underpinning the stock selection process is the against fund guidelines, and electronically rigorous research conducted by dedicated forwarded to the trading team for execution. specialists. The approach to stock selection is largely specific, which means that these investment Liquidity Risk Dealing in volatile, often illiquid markets imposes professionals have the responsibility to design and High impact costs a cost on an active investment manager. The refine their stock selection process to cope with responsibility for minimizing the performance drag the dynamic local factors and market conditions. lies with the Dealing team whose focus is to Quality analysis based investment approach: minimize market impact and transaction costs. The (i) Management competitive advantages in achieving this objective are: (ii) Capital structure (i) An experienced team. (iii) Sustainability of competitive advantage (ii) State of the art systems and on-going (iv) Return on equity investment in trading technology. (v) Industry attractiveness (iii) Analysis of historical transactions and In general, there are three primary sources of associated impact costs used to determine investment return which the investment trading strategies. professionals normally focus on and they form the (iv) Low commission rates paid to brokers, reducing basic premise of the stock selection process: direct costs per trade. (i) Growth - companies that exhibit sustainable (v) Significant overall commission payout ensuring earnings growth in excess of the market premium service from investment banks and through an economic cycle; brokerage firms. (ii) Valuations - quantitative analysis in evaluating The success of the dealing team can be measured the value and profitability of the company; by comparing each execution to the Volume (iii) Dividend yield - an additional source of return, Weighted Average Price (VWAP) and on-line over and above capital appreciation. through the independent Best Execution Comparison Service (BECS) which comparesPrice Risk During company visits, qualitative assessments of transaction costs with those of the competition.Risk of overpaying for the relative growth prospects of the companies Effectiveness of the dealing team is measured ona company concerned are made and strategies are decided to an ongoing basis. create shareholder value. Industries in which Volatility As explained above, the volatility arising out of companies operate are analysed along with the Price volatility due to portfolio specific factors are being mitigated using competitive landscape as well as the management company or portfolio a combination of various methods as explained strategy to enhance competitive advantage and specific factors above. returns. As part of the process, meetings are organised not only with companies that fall within Event Risk As explained above, the volatility arising out of the core stock coverage, but also with their Price volatility due to portfolio specific factors are being mitigated using competitors, distributors, suppliers and other company or portfolio a combination of various methods as explained stakeholders in order to obtain a complete picture specific events above. of the industry/company and other investment opportunities. In the process, a clear # Includes equity and equity related securities. 1
  4. 4. RISK PROFILE OF THE SCHEME be treated as delivery to the investor. The AMC / Registrar are not responsibleMutual Fund Units involve investment risks including the possible loss of for any delayed delivery or non-delivery or any consequences thereof, if theprincipal. Please read the SID carefully for details on risk factors before despatch has been made correctly as stated in this paragraph.investment. Standard and Scheme Specific Risk Factors are summarized atthe end of this document. BENCHMARK FOR PERFORMANCE COMPARISON BSE-200 index.PLANS AND OPTIONSThe Scheme offers two options - growth option and dividend option. The DIVIDEND POLICYdividend option offers dividend payout and dividend reinvestment. Under the The Trustee may decide to distribute by way of dividend, the surplus by way ofgrowth option, no dividend will be declared. Under the dividend option, a realised profit, dividends and interest, net of losses, expenses and taxes, ifdividend may be declared by the Trustee, at its discretion, from time to time any, to Unit Holders in the dividend option of the Scheme if such surplus is(subject to the availability of distributable surplus as calculated in accordance available and adequate for distribution in the opinion of the Trustee. Thewith the Regulations). If the investor does not clearly specify the choice of Trustee’s decision with regard to availability and adequacy, rate, timing andoption at the time of investing, it will be treated as a growth option. frequency of distribution shall be final. The dividend will be due to only thoseIf the investor does not clearly specify the choice of dividend payout or Unit Holders whose names appear in the register of Unit Holders in the dividendreinvestment options within the dividend option, he will be treated as having option of the Scheme on the record date which will be announced in advanceselected the reinvestment option. in accordance with MF Regulations. The Unit Holders have the option of receiving the dividend or reinvesting the same. The dividend will be reinvestedAPPLICABLE NAV at the Applicable NAV of the immediately following Business Day.The Cut-off time for the Scheme is 3 pm, and the Applicable NAV will be as The AMC shall dispatch to the Unit Holders, the dividend warrants within 30under: (thirty) days of the date of declaration of dividend. The dividend distributionFor Purchase / Redemption procedure shall be in accordance with the Regulations.(a) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment instruments accepted at a Designated NAME OF THE FUND MANAGER(S) Collection Centre up to 3.00 pm on a Business Day, the NAV of such day For Equity : Mr. Harshad Patwardhan & Mr. Amit Gadgil will be applicable. For Debt : Mr. Nandkumar Surti & Mr. Namdev Chougule(b) In respect of valid Purchase / Redemption applications along with cheques / demand drafts / other payment instruments accepted at a Designated PERFORMANCE OF THE SCHEME Collection Centre after 3.00 pm on a Business Day, the NAV of the next Scheme Returns as on 31st March, 2011 Business Day will be applicable. Scheme returns (%) BSE 200 (%)The above will be applicable only for cheques / demand drafts / paymentinstruments payable locally in the city in which a Designated Collection Centre Since inception 8.26% 8.75%is located. No outstation cheques will be accepted. 1 year 14.42% 8.15%For Switches 3 year 7.39% 7.17%Valid applications for switch-out shall be treated as applications for Absolute returns for each financial year for the last 4 yearsRedemption and valid applications for switch-in shall be treated as Scheme returns BSE 200applications for Purchase, and the provisions of the Cut-off time and the 120.00% – *11.73% *9.15% 92.87%Applicable NAV mentioned in the Offer Document as applicable to Purchase 90.00% – 83.19%and Redemption shall be applied respectively to the switch-in and switch- 60.00% –out applications. 30.00% – 14.42% 8.15%MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 0.00% – -40.92% -40.98% Minimum initial R 5,000 per application and in -30.00% – application amount multiples of R 1/- thereof. -60.00% – 2007-08 2008-09 2009-10 2010-11 Minimum additional R 1,000 per application and in multiples Financial Years application amount of R 1/- thereof Note: CAGR are given for more than one year. Absolute returns of the growth Minimum redemption / R 1,000 or 100 Units. (The minimum amount option are computed for a period of less than one year. "Since inception" no. of Units balance after Redemption should be R 500. returns are calculated on R 10 invested at inception. In case the balance falls below R 500 the Past performance may or may not be sustained in future. All calculations units will be automatically redeemed along assume that all payouts during the period have been re-invested in the units with the last redemption request.) of the scheme. *Allotment date: 14 June, 2007DESPATCH OF REPURCHASE (REDEMPTION) REQUESTRedemption proceeds will be paid by cheques, marked “A/c Payee only” and EXPENSES OF THE SCHEMEdrawn in the name of the sole holder / first-named holder (as determined by As per the Regulations, the following fees and expenses can be charged to thethe records of the Registrar). Scheme:The Mutual Fund will endeavour to despatch the Redemption proceeds within3 Business Days from the acceptance of the Redemption request, but not 1. Initial issue expensesbeyond 10 Business Days from the date of Redemption. If the payment is not No initial issue expenses were charged to the scheme.made within the period stipulated in the Regulations, the Unit Holder shall be 2. Recurring expensespaid interest @ 15% p.a. for the delayed period and the interest shall be borne These are the fees and expenses for operating the Scheme. These expensesby the AMC. include investment management and advisory fee charged by the AMC, theThe bank name and bank account number, as specified in the Registrar’s Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inrecords, will be mentioned in the cheque. The cheque will be payable at par at the table below:all the cities having ISCs. If the Unit Holder resides in any other city, he will be The AMC has estimated that upto 2.50% of the daily average net assets of thepaid by a demand draft payable at the city of his residence and the demand Scheme will be charged to the Scheme as expenses. For the actual currentdraft charges shall be borne by the AMC. The proceeds may be paid by way of expenses being charged, the investor should refer to the website of the Mutualdirect credit / NEFT / RTGS / any other manner through which the investor’s Fund (www.jpmorganmf.com).bank account specified in the Registrar’s records may be credited with theRedemption proceeds. Nature of expense % of net assets Investment management & advisory fees 1.250Note: The Trustee, at its discretion at a later date, may choose to alter or addother modes of payment. Custodian fees 0.100The Redemption proceeds will be sent by courier or (if the addressee city is Registrar & transfer agent fees including 0.150not serviced by the courier) by registered post. The despatch for the purpose cost related to providing account statement,of delivery through the courier / postal department, as the case may be, shall dividend/redemption cheques/warrants etc. 2
  5. 5. Nature of expense % of net assets All Exit Loads are intended to enable the AMC to recover expenses incurred for promotion or distribution and sale of the Units of the Scheme. All Loads Marketing & selling expenses including will be retained in the Scheme in a separate account and will be utilised to agent’s commission and statutory advertisement meet the distribution and marketing expenses. Any surplus amounts in this 0.505 Brokerage and transaction cost pertaining to account may be credited to the Scheme whenever considered appropriate by the distribution of units the AMC. Audit fees/fees and expenses of the Trustee 0.065 DAILY NET ASSET VALUE (NAV) PUBLICATION Costs related to investor communications 0.040 The Mutual Fund shall declare the NAV of the Scheme on every Business Day on AMFI’s website www.amfiindia.com by 9.00 p.m. and also on its own website Costs of fund transfer from location to location 0.010 www.jpmorganmf.com. In case of any delay, the reasons for such delay would Other Expenses* 0.380 be explained to AMFI. If the NAVs are not available before commencement of business hours on the following Business Day due to any reason, the Mutual Total Annual Scheme Recurring Expenses 2.500 Fund shall issue a press release providing reasons and explaining when the*Other expenses: Any other expenses which are directly attributable to the Mutual Fund would be able to publish the NAVs.Scheme may be charged with approval of the Trustee within the overall limitsas specified in the Regulation 52(6) except those expenses which are specificallyprohibited. JPMORGAN INDIA LIQUID FUNDThese estimates have been made in good faith as per the information availableto the AMC based on past experience and are subject to change inter-se. Types NAME OF THE SCHEMEof expenses charged shall be as per the SEBI (MF) Regulations. JPMorgan India Liquid Fund.The AMC may incur actual expenses which may be more or less than thoseestimated above, under any head and / or in total. The AMC will charge the TYPE OF SCHEMEScheme such actual expenses incurred, subject to the statutory limit prescribed An open-ended liquid scheme.in the Regulations, the current limits of which are given below:Maximum recurring expenses: INVESTMENT OBJECTIVE The investment objective of the Scheme is to provide reasonable returns, Daily average net assets Maximum, as a % of commensurate with low risk while providing a high level of liquidity, through daily average net assets a portfolio of money market and debt securities. However there can be no First R 100 crores 2.50% assurance that the investment objectives of the Scheme will be realized. Next R 300 crores 2.25% Next R 300 crores 2.00% ASSET ALLOCATION PATTERN Balance assets 1.75% Under normal circumstances it is anticipated that the asset allocation shall be as follows:Maximum investment management fee to be charged by the AMC: For both Plans (Retail Plan & Super Institutional Plan) w.e.f. May 1, 2009 Daily average net assets Maximum, as a % of daily average net assets Investments Normal asset allocation Risk (% of net assets) profile First R 100 crores 1.25% Balance assets 1.00% Money market instruments Up to 100% Low (including cash and reverse repoAny excess over these limits will be borne by the AMC. and debt instruments with maturityRecurring expenses (Actual expenses for the financial year ending): up to 91 days)* Particulars March Securitised debt instruments Up to 30% Low 2011 with maturity up to 91 days Total Recurring expenses as a percentage 2.26% *Investment in Derivatives - Up to 10% of the net asset of the Scheme of Daily / Weekly average net assets RISK MITIGATION FACTORSLOAD STRUCTURE OF THE SCHEME Concentration Risk Portfolio construction is the responsibility of the1. Entry Load: investment manager assigned to each fund. NIL There are three objectives to the portfolio2. Exit Load: construction process: (i) to capture and preserve value from all the best For redemption Exit Load ideas by country specialists; (% of applicable NAV) (ii) to ensure no single decision will derail Within 12 months from the date of 1.00% performance; and allotment in respect of Purchase made (iii) to deliver in line with the funds risk/return other than through SIP profiles. Within 12 months from the date of 1.00% Portfolios are constructed using a disciplined allotment in respect of the first and tailored approach, and there is a high Purchase made through SIP degree of commonality across accounts with similar objectives and profiles. During theA switch-out or a withdrawal under SWP shall also attract an Exit Load like any process, the investment manager assigns aRedemption. target percentage weight based uponNo load for units allotted under dividend reinvestment option. variations, positive or negative, from the predetermined fund benchmark weight.No Exit Loads will be chargeable in case of switches made between different Investment managers may also incorporateoptions of the Scheme. their own views on individual security andSubject to the Regulations, the Trustee retains the right to change / impose exercise discretion to align with the abovean Exit Load. guidelines with the objective that is likely toTo know the latest position on Loads structure prior to investing / be achieved by inclusion of the security in aredemption, investors are advised to contact any of the ISCs or the AMC at fund portfolio. The investment manager willits toll-free number "1-800-22-5763". also reconcile any other anomalies between the security rankings and portfolio requirementsThe investor is requested to check the prevailing load structure of the Scheme with the overall objective of adding value tobefore investing. the fund portfolio. 3
  6. 6. The Risk Management / Middle Office oversees For allotment of units in respect of switch-in to the Scheme from other investment managers to ensure compliance with schemes, the following needs to be complied with: the funds internal requirements. i. Application for switch-in is received before the applicable cut-off time.Liquidity Risk Dealing in volatile, often illiquid markets imposes ii. Funds for the entire amount of Subscription/Purchase as per the switch-High impact costs a cost on an active investment manager. The in request are credited to the bank account of the switch-in Scheme before responsibility for minimizing the performance drag the cut-off time. lies with the Dealing team whose focus is to iii. The funds are available for utilization before the cut-off time without minimize market impact and transaction costs. The availing any credit facility whether intra-day or otherwise, by the switch- competitive advantages in achieving this objective in Scheme. are: The above will be applicable only for cheques / demand drafts / payment (i) An experienced team. instruments payable locally in the city in which a Designated Collection Centre (ii) State of the art systems and on-going is located. No outstation cheques will be accepted. investment in trading technology. (iii) Analysis of historical transactions and For Redemption under both the Plans associated impact costs used to determine (a) where the application is received upto 3.00 p.m. - the closing NAV of the trading strategies. day immediately preceding the next Business Day ; and (iv) Low commission rates paid to brokers, reducing (b) where the application is received after 3.00 p.m. - the closing NAV of the direct costs per trade. next Business Day. (v) Significant overall commission payout ensuring premium service from investment banks and Note: In case the application is received on a Non-Business Day, it will be brokerage firms. considered as if received on the Next Business Day. Effectiveness of the dealing team is measured on For Switches an ongoing basis. Valid applications for ‘switch-out’ shall be treated as applications for Redemption and valid applications for ‘switch-in’ shall be treated asVolatility As explained above, the volatility arising out of applications for Purchase, and the provisions of the Cut-off time and thePrice volatility due to portfolio specific factors are being mitigated using Applicable NAV mentioned in this SID as applicable to Purchase andcompany or portfolio a combination of various methods as explained Redemption shall be applied respectively to the ‘switch-in’ and ‘switch-out’specific factors above. applications.RISK PROFILE OF THE SCHEME MINIMUM APPLICATION AMOUNT / NUMBER OF UNITSMutual Fund Units involve investment risks including the possible loss of Retail Plan Superprincipal. Please read the SID carefully for details on risk factors before Institutional Planinvestment. Standard and Scheme Specific Risk Factors are summarized atthe end of this document. Minimum initial R 5,000 per R 1 Crore per application amount application and in application and inPLANS & OPTIONS multiples of R 1 multiples of R 1 thereafter. thereafter.The Scheme has two plans: Retail Plan and Super Institutional Plan.Retail Plan: Minimum additional R 1,000 per R 1 per application application amount application and in and in multiples ofGrowth: Under the growth option no dividend will be declared. multiples of R 1 thereafterDividend: The dividend option offers daily, weekly, fortnightly and monthly R 1 thereafterdividend reinvestment options. Minimum redemption R 5,000 or R 5,000 orSuper Institutional Plan: amount / no. of Units 500 Units 500 UnitsGrowth: Under the growth option no dividend will be declared. DESPATCH OF REPURCHASE (REDEMPTION) REQUESTDividend: The dividend option offers daily, weekly, fortnightly and monthly Redemption proceeds will be paid by cheques, marked “A/c Payee only” anddividend reinvestment options. drawn in the name of the sole holder / first-named holder (as determined byUnder the Super Institutional Plan, the dividend option will also offer weekly, the records of the Registrar).fortnightly and monthly payout. The Mutual Fund will endeavour to despatch the Redemption proceeds withinUnder the dividend option, a dividend may be declared by the Trustee, at its 1 Business Day from the acceptance of the Redemption request, but not beyonddiscretion, from time to time (subject to the availability of distributable surplus 10 Business Days from the date of Redemption. If the payment is not madeas calculated in accordance with the Regulations). within the period stipulated in the Regulations, the Unit Holder shall be paid interest @ 15% p.a. for the delayed period and the interest shall be borne byAPPLICABLE NAV the AMC.For Purchase under both the Plans The bank name and bank account number, as specified in the Registrar’si. where the application is received upto 2.00 p.m. on a day and funds are records, will be mentioned in the cheque. The cheque will be payable at par at available for utilization before the cut-off time without availing any credit all the cities having ISCs. If the Unit Holder resides in any other city, he will be facility, whether, intra-day or otherwise – the closing NAV of the day paid by a demand draft payable at the city of his residence and the demand immediately preceding the day of receipt of application; draft charges shall be borne by the AMC. The proceeds may be paid by way ofii. where the application is received after 2.00 p.m. on a day and funds are direct credit / NEFT / RTGS / any other manner through which the investor’s available for utilization on the same day without availing any credit facility, bank account specified in the Registrar’s records may be credited with the whether, intra-day or otherwise – the closing NAV of the day immediately Redemption proceeds. preceding the next business day; and Note: The Trustee, at its discretion at a later date, may choose to alter or addiii. irrespective of the time of receipt of application, where the funds are not other modes of payment. available for utilization before the cut-off time without availing any credit The Redemption proceeds will be sent by courier or (if the addressee city is facility, whether, intra-day or otherwise – the closing NAV of the day not serviced by the courier) by registered post. The despatch for the purpose immediately preceding the day on which the funds are available for of delivery through the courier / postal department, as the case may be, shall utilization. be treated as delivery to the investor. The AMC / Registrar are not responsibleFor allotment of Units in respect of Purchase in the Scheme, the for any delayed delivery or non-delivery or any consequences thereof, if thefollowing needs to be complied with: despatch has been made correctly as stated in this paragraph.i. Application is received before the applicable cut-off time. BENCHMARK FOR PERFORMANCE COMPARISONii. Funds for the entire amount of Subscription/Purchase as per the CRISIL Liquid Fund Index. application are credited to the bank account of the Scheme before the cut-off time. DIVIDEND POLICYiii. The funds are available for utilization before the cut-off time without The Trustee may decide to distribute by way of dividend, the surplus by way of availing any credit facility whether intra-day or otherwise, by the Scheme. realised profit, dividends and interest, net of losses, expenses and taxes, if 4
  7. 7. any, to Unit Holders in the dividend option of the Scheme if such surplus is Nature of expense % of net assetsavailable and adequate for distribution in the opinion of the Trustee. TheTrustee’s decision with regard to availability and adequacy, rate, timing and Retail Superfrequency of distribution shall be final. The dividend will be due to only those Plan Institutional PlanUnit Holders whose names appear in the register of Unit Holders in the dividendoption of the Scheme on the record date which will be announced in advance Costs of fund transfer 0.005 0.005in accordance with MF Regulations. The Unit Holders have the option of Service tax 0.033 0.033receiving the dividend or reinvesting the same. The dividend will be reinvestedat the Applicable NAV of the immediately following Business Day. The AMC Other operating expenses* 0.089 0.049shall dispatch to the Unit Holders, the dividend warrants within 30 (thirty) Total annual scheme recurring expenses 0.800 0.500days of the date of declaration of dividend. The dividend distribution procedureshall be in accordance with the Regulations. * Other expenses: Any other expenses which are directly attributable to the Scheme may be charged with approval of the Trustee within the overall limitsNAME OF THE FUND MANAGER(S) as specified in the Regulation 52(6) except those expenses which are specificallyMr. Nandkumar Surti and Mr. Namdev Chougule. prohibited. The AMC reserves the right to change the above, both inter se or in total, subject to prevailing Regulations.PERFORMANCE OF THE SCHEME These estimates have been made in good faith as per the information availableScheme Returns as on 31st March, 2011 to the AMC based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations. Retail CRISIL Liquid Super CRISIL Liquid (%) Fund Index (%) Institutional (%) Fund Index (%) The AMC will charge the Scheme such actual expenses incurred, subject toSince inception 6.24% 5.89% 7.01% 6.31% the statutory limit prescribed in the Regulations, the current limits of which are given below:1 year 6.57% 6.21% 6.79% 6.21%3 year NA NA 6.83% 6.22% Maximum recurring expenses : Absolute returns for each financial year for the last 4 years Daily average net assets Maximum, as a % of daily average net assets Retail Super Institutional CRISIL Liquid Fund Index 9.18% 8.81% First R 100 crores 2.25% 10.00% – 8.00% – 6.79% Next R 300 crores 2.00% #4.98% 6.57% 6.21% 6.00% – Next R 300 crores 1.75% *4.18% #4.83% 4.36% 4.57% 4.00% – *3.53% 3.69% Balance assets 1.50% 2.00% – 0.00% – Maximum investment management fee to be charged by the AMC: 2007-08 2008-09 2009-10 2010-11 Daily average net assets Maximum, as a % of Financial Years daily average net assetsNote: CAGR are given for more than one year. Absolute returns of the growth First R 100 crores 1.25%option are computed for a period of less than one year. "Since inception" Balance assets 1.00%returns are calculated on R 10 invested at inception.Past performance may or may not be sustained in future. All calculations Any excess over these limits will be borne by the AMC.assume that all payouts during the period have been re-invested in the units Recurring expenses (Actual expenses for the financial year ending):of the scheme. Particulars MarchAllotment dates : 2011*Super Institutional Plan : 21 September, 2007.#Retail Plan : 16 September, 2008. Super Institutional Plan: Total Recurring expenses as a percentage of Daily / Weekly 0.35%EXPENSES OF THE SCHEME average net assetsAs per the Regulations, the following fees and expenses can be charged to the Retail Plan:Scheme: Total Recurring expenses as a percentage of Daily / Weekly 0.55% average net assets1. Initial issue expensesNo initial issue expenses were charged to the Scheme.2. Recurring expenses LOAD STRUCTURE OF THE SCHEME Entry Load: NILThese are the fees and expenses for operating the Scheme. These expensesinclude investment management and advisory fee charged by the AMC, the Exit Load: NILRegistrar and Transfer Agents’ fee, marketing and selling costs etc. as given in To know the latest position on Loads structure prior to investing /the table below: redemption, investors are advised to contact any of the ISCs or the AMC atThe AMC has estimated that upto 2.25% of the daily average net assets of the its toll-free number "1-800-22-5763".Scheme will be charged to the Scheme as expenses. For the actual current The investor is requested to check the prevailing load structure of the Schemeexpenses being charged, the investor should refer to the website of the Mutual before investing.Fund (www.jpmorganmf.com). All Loads are intended to enable the AMC to recover expenses incurred forNature of expense % of net assets promotion or distribution and sales of the Units of the Scheme. All Loads will Retail Super be retained in the Scheme in a separate account and will be utilised to meet Plan Institutional Plan distribution and marketing expenses. Any surplus amounts in this account may be credited to the Scheme whenever considered appropriate by the AMC.Investment management fee 0.200 0.200Trustee fees 0.005 0.005 DAILY NET ASSET VALUE (NAV) PUBLICATION The AMC will calculate and disclose the NAV of the Scheme on every BusinessCustodian fees 0.005 0.005 Day. The NAV of the Scheme will be made available at all ISCs of the AMC. TheRegistrar & transfer agent fees 0.040 0.030 AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com)Marketing & selling expenses 0.400 0.150 and of the Association of Mutual Funds in India (www.amfiindia.com) byincluding agents commission 9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI. If the NAVs are not available beforeAudit fees and statutory advertisements 0.015 0.015 commencement of business hours on the following Business Day due to anyUnit Holder servicing, investor 0.008 0.008 reason, the Fund shall issue a press release providing reasons and explainingcommunication expenses when the Fund would be able to publish the NAV. 5
  8. 8. JPMORGAN INDIA TREASURY FUND (ii) State of the art systems and on-going investment in trading technology. (iii) Analysis of historical transactions andNAME OF THE SCHEME associated impact costs used to determineJPMorgan India Treasury Fund. trading strategies. (iv) Low commission rates paid to brokers, reducingTYPE OF SCHEME direct costs per trade.An open-ended income scheme. (v) Significant overall commission payout ensuring premium service from investment banks and brokerage firms.INVESTMENT OBJECTIVEThe investment objective is to provide liquidity and optimal returns to investors Effectiveness of the dealing team is measured onby investing primarily in a mix of short-term debt and money market an ongoing basis.instruments which results in a portfolio having marginally higher maturity Volatility As explained above, the volatility arising out ofand moderately higher credit risk as compared to a liquid fund, at the same Price volatility due to portfolio specific factors are being mitigated usingtime maintaining a balance between safety and liquidity. However, there can company or portfolio a combination of various methods as explainedbe no assurance that the investment objective of the Scheme will be specific factors above.realized.ASSET ALLOCATION PATTERN RISK PROFILE OF THE SCHEME Mutual Fund Units involve investment risks including the possible loss ofUnder normal circumstances it is anticipated that the asset allocation shall be principal. Please read the SID carefully for details on risk factors beforeas follows: investment. Standard and Scheme Specific Risk Factors are summarized atFor both Plans (Retail Plan & Super Institutional Plan) the end of this document. Investments Normal asset allocation Risk (% of net assets) profile PLANS & OPTIONS The Scheme has two plans: Retail Plan and Super Institutional Plan. Money market & debt instruments with 70 - 100% Low maturity / average maturity / interest Retail Plan: rate reset not greater than 1 year Growth: Under the growth option no dividend will be declared. Debt instruments with maturity greater 0 - 30% Low to Dividend: The dividend option offers daily, weekly, fortnightly and monthly than 1 year but less than 3 years* Medium dividend reinvestment options.* Debt Instruments include securitised debt. Securitised debt can be up to Super Institutional Plan: 50% of the net assets. Investment in Derivatives - up to 50% of the net Growth: Under the growth option no dividend will be declared. assets of the Scheme. Dividend: The dividend option offers daily, weekly, fortnightly and monthly dividend reinvestment options.RISK MITIGATION FACTORS Under the Super Institutional Plan, the dividend option will also offer weekly,Concentration Risk Portfolio construction is the responsibility of the fortnightly and monthly payout. investment manager assigned to each fund. Under the dividend option, a dividend may be declared by the Trustee, at its There are three objectives to the portfolio discretion, from time to time (subject to the availability of distributable surplus construction process: as calculated in accordance with the Regulations). (i) to capture and preserve value from all the best ideas by country specialists; APPLICABLE NAV (ii) to ensure no single decision will derail The Cut-off time for the Scheme is 3.00 p.m. and the Applicable NAV will be as performance; and under: (iii) to deliver in line with the funds risk/return profiles. For Purchase Portfolios are constructed using a disciplined a. where the application is received upto 3.00 pm with a local cheque or and tailored approach, and there is a high demand draft payable at par at the place where it is received, with amount degree of commonality across accounts with less than R 1 crore – closing NAV of the day of receipt of application; similar objectives and profiles. During the b. where the application is received after 3.00 pm with a local cheque or process, the investment manager assigns a demand draft payable at par at the place where it is received, with amount target percentage weight based upon less than R 1 crore – closing NAV of the next Business Day; variations, positive or negative, from the c. where the application is received with a local cheque or demand draft predetermined fund benchmark weight. payable at par at the place where it is received, with amount equal to or Investment managers may also incorporate more than R 1 crore irrespective of the time of receipt of application, the their own views on individual security and closing NAV of the day on which the funds are available for utilisation exercise discretion to align with the above shall be applicable. guidelines with the objective that is likely to be achieved by inclusion of the security in a Applicability of NAV for the Scheme with an amount equal to or more than fund portfolio. The investment manager will R 1 crore: also reconcile any other anomalies between the a) For allotment of units in respect of purchase in the Scheme, the following security rankings and portfolio requirements needs to be complied with: with the overall objective of adding value to i. Application is received before the applicable cut-off time. the fund portfolio. ii. Funds for the entire amount of subscription/purchase as per the The Risk Management / Middle Office oversees application are credited to the bank account of the respective Scheme investment managers to ensure compliance with before the cutoff time. the funds internal requirements. iii. The funds are available for utilization before the cut-off time withoutLiquidity Risk Dealing in volatile, often illiquid markets imposes availing any credit facility whether intra-day or otherwise, by theHigh impact costs a cost on an active investment manager. The respective Scheme. responsibility for minimizing the performance drag b) For allotment of units in respect of switch-in to the Scheme from other lies with the Dealing team whose focus is to schemes, the following needs to be complied with: minimize market impact and transaction costs. The competitive advantages in achieving this objective i. Application for switch-in is received before the applicable cut-off time. are: ii. Funds for the entire amount of subscription/purchase as per the switch- (i) An experienced team. in request are credited to the bank account of the respective switch-in Scheme before the cut-off time. 6
  9. 9. iii. The funds are available for utilization before the cut-off time without NAME OF THE FUND MANAGER(S) availing any credit facility whether intra-day or otherwise, by the Mr. Nandkumar Surti and Mr. Namdev Chougule. respective switch-in Scheme or Plans or options thereunder.For Redemption PERFORMANCE OF THE SCHEMEa. where the application is received up to 3.00 pm – closing NAV of the day Scheme Returns as on 31st March, 2011 of receipt of application; and Retail CRISIL Liquid Super CRISIL Liquidb. an application is received after 3.00 pm – closing NAV of the next Business (%) Fund Index (%) Institutional (%) Fund Index (%) Day.The above will be applicable only for cheques / demand drafts / payment Since inception 6.41% 5.89% 7.27% 6.31%instruments payable locally in the city in which a Designated Collection Centre 1 year 6.49% 6.21% 6.75% 6.21%is located. No outstation cheques will be accepted. 3 years NA NA 7.04% 6.22%For Switches Absolute returns for each financial year for the last 4 yearsValid applications for switch-out shall be treated as applications forRedemption and valid applications for switch-in shall be treated as Retail Super Institutional CRISIL Liquid Fund Indexapplications for Purchase, and the provisions of the Cut-off time and the 10.00% – 9.25% 8.81%Applicable NAV mentioned in the Offer Document as applicable to Purchase 8.00% – 6.75%and Redemption shall be applied respectively to the switch-in and switch- #4.99% 6.49% 6.21% 6.00% – #4.81% 4.89% 5.15%out applications. *4.46% 4.00% – *3.56% 3.69% 2.00% –MINIMUM APPLICATION AMOUNT / NUMBER OF UNITS 0.00% – Retail Plan Super Institutional Plan 2007-08 2008-09 2009-10 2010-11 Financial Years Minimum initial R 5,000 per application R 1 Crore per application application amount and in multiples and in multiples Note: CAGR are given for more than one year. Absolute returns of the growth of R 1 thereafter. of R 1 thereafter. option are computed for a period of less than one year. "Since inception" returns are calculated on R 10 invested at inception. Minimum additional R 1,000 per application R 1 per application and in application amount and in multiples multiples of R 1 thereafter Past performance may or may not be sustained in future. All calculations of R 1 thereafter assume that all payouts during the period have been re-invested in the units of the scheme. Minimum redemption R 5,000 or 500 Units R 5,000 or 500 Units Allotment dates: amount / no. of Units *Super Institutional Plan : 21 September, 2007. #Retail Plan : 16 September, 2008.DESPATCH OF REPURCHASE (REDEMPTION) REQUESTRedemption proceeds will be paid by cheques, marked “A/c Payee only” and EXPENSES OF THE SCHEMEdrawn in the name of the sole holder / first-named holder (as determined by As per the Regulations, the following fees and expenses can be charged to thethe records of the Registrar). Scheme:The Mutual Fund will endeavour to despatch the Redemption proceeds within3 Business Days from the acceptance of the Redemption request, but not 1. Initial issue expensesbeyond 10 Business Days from the date of Redemption. If the payment is not No initial issue expenses were charged to the scheme.made within the period stipulated in the Regulations, the Unit Holder shall be 2. Recurring expensespaid interest @15% p.a. for the delayed period and the interest shall be borne These are the fees and expenses for operating the Scheme. These expensesby the AMC. include investment management and advisory fee charged by the AMC, theThe bank name and bank account number, as specified in the Registrar’s Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given inrecords, will be mentioned in the cheque. The cheque will be payable at par at the table below:all the cities having ISCs. If the Unit Holder resides in any other city, he will be The AMC has estimated that upto 2.25% of the daily average net assets of thepaid by a demand draft payable at the city of his residence and the demand Scheme will be charged to the Scheme as expenses. For the actual currentdraft charges shall be borne by the AMC. The proceeds may be paid by way of expenses being charged, the investor should refer to the website of the Mutualdirect credit / NEFT / RTGS / any other manner through which the investor’s Fund (www.jpmorganmf.com).bank account specified in the Registrar’s records may be credited with theRedemption proceeds. Nature of expense % of net assetsNote: The Trustee, at its discretion at a later date, may choose to alter or add Retail Superother modes of payment. Plan Institutional PlanThe Redemption proceeds will be sent by courier or (if the addressee city is Investment management fee 0.350 0.350not serviced by the courier) by registered post. The despatch for the purpose Trustee fees 0.005 0.005of delivery through the courier / postal department, as the case may be, shallbe treated as delivery to the investor. The AMC / Registrar are not responsible Custodian fees 0.005 0.005for any delayed delivery or non-delivery or any consequences thereof, if the Registrar & transfer agent fees 0.040 0.030despatch has been made correctly as stated in this paragraph. Marketing & selling expenses 0.340 0.200 including agent’s commissionBENCHMARK FOR PERFORMANCE COMPARISON Audit fees and statutory advertisements 0.015 0.015CRISIL Liquid Fund Index. Unit Holder servicing, investor 0.008 0.008DIVIDEND POLICY communication expensesThe Trustee may decide to distribute by way of dividend, the surplus by way of Costs of fund transfer 0.005 0.005realised profit, dividends and interest, net of losses, expenses and taxes, if Service tax 0.039 0.039any, to Unit Holders in the dividend option of the Scheme if such surplus isavailable and adequate for distribution in the opinion of the Trustee. The Other operating expenses* 0.093 0.043Trustee’s decision with regard to availability and adequacy, rate, timing and Total annual scheme recurring expenses 0.900 0.700frequency of distribution shall be final. The dividend will be due to only thoseUnit Holders whose names appear in the register of Unit Holders in the dividend * Other expenses: Any other expenses which are directly attributable to theoption of the Scheme on the record date which will be announced in advance Scheme may be charged with approval of the Trustee within the overall limitsin accordance with MF Regulations. The Unit Holders have the option of as specified in the Regulation 52(6) except those expenses which are specificallyreceiving the dividend or reinvesting the same. The dividend will be reinvested prohibited. The AMC reserves the right to change the above, both inter se orat the Applicable NAV of the immediately following Business Day. The AMC in total, subject to prevailing Regulations.shall dispatch to the Unit Holders, the dividend warrants within 30 (thirty) These estimates have been made in good faith as per the information availabledays of the date of declaration of dividend. The dividend distribution procedure to the AMC based on past experience and are subject to change inter-se. Typesshall be in accordance with the Regulations. of expenses charged shall be as per the SEBI (MF) Regulations. 7
  10. 10. The AMC will charge the Scheme such actual expenses incurred, subject to Instrument Normal allocation Riskthe statutory limit prescribed in the Regulations, the current limits of which (% of net assets) profileare given below: Equity and equity related securities 65-100% MediumMaximum recurring expenses: of Smaller Companies* to HighDaily average net assets Maximum, as a % of Equity and equity related securities of 0-35% Medium daily average net assets companies other than Smaller Companies* to HighFirst R 100 crores 2.25% Debt and money market 0-35% Low toNext R 300 crores 2.00% instruments MediumNext R 300 crores 1.75%Balance assets 1.50% * Includes investments in equity and equity related securities issued by domestic companies; including derivatives traded on the Futures andMaximum investment management fee to be charged by the AMC: Options segment of Indian stock exchanges not exceeding 50% of the net assets of the Scheme, offshore securities, ADRs and GDRs not exceedingDaily average net assets Maximum, as a % of daily average net assets 50% of the net assets of the Scheme. Investment in securitised debt mayFirst R 100 crores 1.25% be made to the extent of 20% of net assets of the Scheme.Balance assets 1.00% RISK MITIGATION FACTORSAny excess over these limits will be borne by the AMC. Risk and Description Risk Mitigants / Management StrategyRecurring expenses (Actual expenses for the financial year ending): specific to Equities#Particulars March Quality Risk The stock selection process is an important part 2011 Risk of investing in of the idea generation stage, as it provides the unsustainable / weak greater part of added value to the investments.Super Institutional Plan: companies Underpinning the stock selection process is theTotal Recurring expenses as a percentage of Daily / Weekly 0.50% rigorous research conducted by dedicatedaverage net assets specialists. The approach to stock selection isRetail Plan: largely specific, which means that these investmentTotal Recurring expenses as a percentage of Daily / Weekly 0.75 professionals have the responsibility to design andaverage net assets refine their stock selection process to cope with the dynamic local factors and market conditions.LOAD STRUCTURE OF THE SCHEME Quality analysis based investment approach:1. Entry Load: NIL (i) Management2. Exit Load: NIL (ii) Capital structure (iii) Sustainability of competitive advantageTo know the latest position on Loads structure prior to investing /redemption, investors are advised to contact any of the ISCs or the AMC at (iv) Return on equityits toll-free number "1-800-22-5763". (v) Industry attractivenessThe investor is requested to check the prevailing load structure of the Scheme In general, there are three primary sources ofbefore investing. investment return which the investment professionals normally focus on and they form theAll Loads are intended to enable the AMC to recover expenses incurred for basic premise of the stock selection process:promotion or distribution and sales of the Units of the Scheme. All Loads willbe retained in the Scheme in a separate account and will be utilised to meet (i) Growth - companies that exhibit sustainablethe distribution and marketing expenses. Any surplus amounts in this account earnings growth in excess of the marketmay be credited to the Scheme whenever considered appropriate by the AMC. through an economic cycle; (ii) Valuations - quantitative analysis in evaluatingDAILY NET ASSET VALUE (NAV) PUBLICATION the value and profitability of the company;The AMC will calculate and disclose the NAV of the Scheme on every Business (iii) Dividend yield - an additional source of return,Day. The NAV of the Scheme will be made available at all ISCs of the AMC. The over and above capital appreciation.AMC shall update the NAVs on the website of the Fund (www.jpmorganmf.com) Price Risk During company visits, qualitative assessments ofand of the Association of Mutual Funds in India (www.amfiindia.com) by Risk of overpaying for the relative growth prospects of the companies9.00 p.m. on every Business Day. In case of any delay, the reasons for such a company concerned are made and strategies are decided todelay would be explained to AMFI. If the NAVs are not available before create shareholder value. Industries in whichcommencement of business hours on the following Business Day due to any companies operate are analysed along with thereason, the Fund shall issue a press release providing reasons and explaining competitive landscape as well as the managementwhen the Fund would be able to publish the NAV. strategy to enhance competitive advantage and returns. As part of the process, meetings areJPMORGAN INDIA SMALLER COMPANIES FUND organised not only with companies that fall within the core stock coverage, but also with theirNAME OF THE SCHEME competitors, distributors, suppliers and other stakeholders in order to obtain a complete pictureJPMorgan India Smaller Companies Fund of the industry/company and other investmentTYPE OF SCHEME opportunities. In the process, a clearAn open-ended equity growth scheme. understanding of the business is arrived at, enabling the identification of future long-termINVESTMENT OBJECTIVE winners at an early stage.The investment objective is to seek to generate long-term capital appreciation Concentration Risk Portfolio construction is the responsibility of thefrom a portfolio that is substantially constituted of equity and equity-related investment manager assigned to each fund.securities focused on smaller companies. Generally, the universe will be thecompanies constituting the bottom fourth by way of market capitalization of There are three objectives to the portfoliostocks listed on the NSE / BSE. The fund manager may from time to time construction process:include other equity and equity-related securities outside the universe to (i) to capture and preserve value from all the bestachieve optimal portfolio construction. However, there can be no assurance ideas by country specialists;that the investment objective of the scheme will be realised. (ii) to ensure no single decision will derail performance; andASSET ALLOCATION PATTERN (iii) to deliver in line with the funds risk/returnUnder normal circumstances, it is anticipated that the asset allocation shall profiles.be as follows: 8

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