J.P. Morgan Asset Management (JPMAM) has announced that JPMorgan Asia Equity Dividend Fund and JPMorgan Global Bond Fund have been approved for northbound distribution in the Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme.
JPMAM's joint venture, China International Fund Management (CIFM), will continue to act as the firm's local representative and master agent to distribute the funds in Mainland China.
The funds join two other existing MRF northbound funds already offered by JPMAM, namely, JPMorgan Asian Total Return Bond Fund and JPMorgan Pacific Securities Fund. Both newly approved funds provide complementary approaches to the existing MRF offerings, serving different client needs in their respective asset classes and in the context of a diversified portfolio.
JPMorgan Pacific Securities Fund has a growth investment style, whereas JPMorgan Asia Equity Dividend Fund has an equity income investment approach.
JPMorgan Asia Equity Dividend Fund, with assets under management of approximately US$1.3 billion as of the end of December 2018, aims to provide income and long-term capital growth by investing primarily in equity securities of companies in the Asia Pacific region (excluding Japan) that the investment manager expects to pay dividends. Stocks are selected based on historical records and company announcements on dividends, in addition to their potential for long-term capital appreciation.
JPMorgan Asian Total Return Bond Fund seeks to achieve a total return, consisting of capital growth and regular dividend income, through an actively managed portfolio investing primarily in Asian bonds and other debt securities, whereas JPMorgan Global Bond Fund aims to achieve a return in excess of global bond markets by investing primarily in global investment grade debt securities.
JPMorgan Global Bond Fund, with assets under management of approximately US$457 million as of the end of December 2018, is different to other investment strategies in the northbound MRF scheme, in that it invests at least 90% of its non-cash assets in global debt securities rated investment grade.
"We are pleased to see further expansion of the MRF northbound scheme as the China market continues to open up, and are honoured to be one of the key players in this market," says Dan Watkins, chief executive officer, Asia Pacific, J.P. Morgan Asset Management.
"We are excited to continue our strong collaboration with CIFM, which has been instrumental to our success in the MRF scheme, combining CIFM's extensive distribution presence with the global investment expertise of JPMAM to help enhance investment options for Mainland investors," he adds.
Eddie Chang, general manager of CIFM, says, "Since the launch of the first MRF northbound fund, JPMAM and CIFM have been jointly devoted to strengthening and developing distributor relationships and committed to helping investors make more informed investment decisions."