5th wave of Investment Confidence Index by J.P. Morgan Asset Management in association with ValueNotes
– Retail investor confidence continues to be highest among all categories for the third consecutive quarter
– Overall confidence highest among Chennai investors and IFAs
– Delhi is the only city to have witnessed a steady rise in confidence since September 2009
– Debt mutual funds maintain their popularity among Corporates; Retail investors become cautious
– Corporate sentiment about BSE Sensex declines
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Mumbai, October 2010: JPMorgan Asset Management India Pvt. Ltd. (JPMAMIPL) in association with ValueNotes today announced findings of the fifth wave of the Investment Confidence Index (ICI) in India. The J.P. Morgan Asset Management – ValueNotes Investment Confidence Index (ICI), which was launched in August 2009, is published on a quarterly basis. The ICI captures the confidence of retail investors, corporate investors and financial advisors on the Indian economic and investment environment.
The findings of the Fifth Wave of the ICI show that a range of economic factors have dented corporate confidence levels, but retail and advisor confidence has improved across all indicators. The results of the current survey clearly suggest climate change is beginning to worry the Indian investor. Increased protectionism in the developed world has also started to weigh on sentiment within the Indian financial community.
ValueNotes, an independent market research company, was commissioned by J.P. Morgan Asset Management to conduct the survey. The ICI was developed by interviewing a random sample of retail investors (with a wallet size in excess of INR 200,000), corporate investors and financial advisors. The survey took place in September 2010 in eight cities across India: Mumbai, Delhi/NCR, Kolkata, Chennai, Ahmedabad, Bengaluru, Pune and Hyderabad.
The key objective of the ICI is to quantify confidence in the investment environment among investors and advisors. The survey also attempts to study investment behaviour and sentiment based on key factors such as the improvement in the Indian and global economic environment, general investment atmosphere, expectation of growth in investment portfolios and others. Additionally, ICI analyses the short term and long term changes in investment behaviour and outlook every quarter, from an investor and advisor standpoint.
The J.P. Morgan Asset Management – Valuenotes Investment Confidence Index score is derived from responses to the following questions posed to all target segments:
Responses to these 6 questions also form the basis for arriving at the Retail Investor Confidence Index, Corporate Confidence Index and the Advisor Confidence Index which are sub-indices of the Investment Confidence Index. At any given point, the indices can move from “0″ to “200″, with “0″ depicting the most negative outlook; “200″ depicting full and absolute confidence and “100″ showing a neutral position.
Mr. Christopher Spelman, Whole time Director and Chief Executive Officer of J.P. Morgan Asset Management said, “Despite the concerns surrounding the global economy, it is reassuring to see that retail investors still remain optimistic and confident as a whole. It is also encouraging to see that confidence is returning among IFAs and to know that brokers and financial advisors are considered to be the most preferred sources of information for making investment decisions among retail investors.”
Mr. Arun Jethmalani, Managing Director, ValueNotes commented, “After a marginal decline in the previous quarter, the Investment Confidence Index has gained 4.9 points. Retail and advisor confidence have improved across all indicators, while corporate confidence remains subdued. The financial community remains optimistic about the domestic economy, but is concerned about US/global economic growth, increasing protectionism and climate change.”
The ICI now stands at 145.3, climbing up 9.4 points or 6.9% from the July 2009 reading of 135.9. The Retail Investor Confidence Index ranks highest at 160, followed distantly by the Advisor Confidence Index (144.1) and the Corporate Confidence Index (131.8).
Notes to Editors
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is the brand name of J.P. Morgan Chase & Co‟s asset management companies. J.P. Morgan Asset Management is a global asset management leader providing world-class investment solutions to clients. With US$1,219.4 billion* in assets under management (as at 31 March 2010) and offices in 40 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
Commitment to India: JPMorgan Asset Management India Private Limited is the Indian arm of J.P. Morgan Asset Management. It commenced its mutual fund business in India in April 2007, initially establishing its head office in Mumbai and subsequently opening satellite offices in Delhi, Kolkata, Chennai, Ahmedabad, Pune and Bengaluru. The firm distributes its funds through a network of banks, independent financial advisers and national distributors and currently has caters to investors in 141 cities across the country.
The firm is still in its infancy but has a very clear agenda of bringing the inherent strengths of J.P. Morgan Asset Management into the country, namely:
J.P. Morgan Asset Management manages assets on behalf of a broad range of retail and institutional investors in India. It continues to expand its product range to meet the needs of its diverse client base, using the resources and expertise available from its global network.
ValueNotes is a leading provider of business intelligence and research, with expertise across industries, particularly in financial services, media, engineering, healthcare, IT and the outsourcing industry. It operates at multiple points of the knowledge value chain to provide bespoke competitive intelligence, research, analytics, knowledge management and intelligence to a wide variety of users. ValueNotes’ customers include some of the leading global corporations, asset and wealth managers, management consulting firms, research publishers, PE and VC firms.
ValueNotes products and services are made available by different Business Units.
The information contained herein is provided based on a public survey. Although we endeavour to ensure that the information is as current and accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy and adequacy of the information. Readers should, wherever possible, verify the information before acting on it.
This information is based on our assumptions and interpretations of the survey conducted. No part of our compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed herein. Be aware that our assumptions and interpretations are partially based on our observation of participants’ past behaviour. Do not base your actions on the material so provided. These observations will change if different assumptions and interpretations are applied for the purpose of preparing this survey report.