JF Asset sees 2007 launch in India, South Korea

HONG KONG, Dec 8 (Reuters) JF Asset Management hopes to win regulatory approval in the first half of next year to begin selling fund products in the South Korean and Indian markets, its Hong Kong and China business head said on Friday.

Staffing at the Asian fund management arm of JPMorgan Chase&Co. is likely to jump more than 10 percent next year with the entry into the two markets and other expansions, added JF Funds Chief Executive Ken Tam.

''We are hoping that we will get the licence from the (Indian) regulator in Q1 ... in terms of the market we are thinking of both local product and international products,'' Tam told Reuters in an interview.

''We would like to launch the product in the first half of 2007. This is the target. But in these types of emerging markets, sometimes the target will be changed.'' He said JF Asset hopes it will receive its licence to operate in the South Korean market, which has more than 0 billion in assets, in the first half of next year.

''These Korean business developments will be marginally later than India,'' he said.

''If you look at the footprint for all of Asia, by the end of 2007 ... we are hoping that our headcount will grow to more than 900 people in the region.'' JF Asset Management has more than billion in locally managed assets. The Hong Kong-based firm's roots go back to 1970, when it was formed as a joint venture owned partly by storied trading house Jardine Matheson before being sold on.

NEW PRODUCTS Its assets are sourced from both its domestic markets and the global network of parent JPMorgan Asset Management, which had some 5 billion in assets under management as of Sept. 30.

Tam said JF Asset will likely launch at least three new products in Hong Kong in 2006, after rolling out Indonesian, Vietnam and China A-share funds this year.

The A-share fund proved particularly popular, raising more than 0 million just days after launch and forcing JF to close the product to new investors.

The fund uses JF Asset's 0 million Qualified Foreign Institutional Investor (QFII) quota for investing in China's red-hot domestic stock market <.ssec>, which is up more than 80 percent this year.

JF Asset has already submitted an application to increase its quota with an eye to launching another A-share fund, Tam said, but he noted there was no indication when or even if it might receive more.

Tam said China International Fund Management Co., the mainland joint venture in which it has a 49 percent stake, is considering launching two or three new products next year.

The venture already has about 23 billion yuan ( HONG KONG, Dec 8 (Reuters) JF Asset Management hopes to win regulatory approval in the first half of next year to begin selling fund products in the South Korean and Indian markets, its Hong Kong and China business head said on Friday.

Staffing at the Asian fund management arm of JPMorgan Chase&Co. is likely to jump more than 10 percent next year with the entry into the two markets and other expansions, added JF Funds Chief Executive Ken Tam.

''We are hoping that we will get the licence from the (Indian) regulator in Q1 ... in terms of the market we are thinking of both local product and international products,'' Tam told Reuters in an interview.

''We would like to launch the product in the first half of 2007. This is the target. But in these types of emerging markets, sometimes the target will be changed.'' He said JF Asset hopes it will receive its licence to operate in the South Korean market, which has more than $200 billion in assets, in the first half of next year.

''These Korean business developments will be marginally later than India,'' he said.

''If you look at the footprint for all of Asia, by the end of 2007 ... we are hoping that our headcount will grow to more than 900 people in the region.'' JF Asset Management has more than $28 billion in locally managed assets. The Hong Kong-based firm's roots go back to 1970, when it was formed as a joint venture owned partly by storied trading house Jardine Matheson before being sold on.

NEW PRODUCTS Its assets are sourced from both its domestic markets and the global network of parent JPMorgan Asset Management, which had some $935 billion in assets under management as of Sept. 30.

Tam said JF Asset will likely launch at least three new products in Hong Kong in 2006, after rolling out Indonesian, Vietnam and China A-share funds this year.

The A-share fund proved particularly popular, raising more than $190 million just days after launch and forcing JF to close the product to new investors.

The fund uses JF Asset's $150 million Qualified Foreign Institutional Investor (QFII) quota for investing in China's red-hot domestic stock market <.ssec>, which is up more than 80 percent this year.

JF Asset has already submitted an application to increase its quota with an eye to launching another A-share fund, Tam said, but he noted there was no indication when or even if it might receive more.

Tam said China International Fund Management Co., the mainland joint venture in which it has a 49 percent stake, is considering launching two or three new products next year.

The venture already has about 23 billion yuan ($2.94 billion) of assets under management.

Over the longer term, JF Asset would also like to win international mandates to manage funds for China's National Social Security Fund and mainland Chinese insurance companies, Tam said.

But the firm has no near-term plans to try to source funds from China's retail market through the country's fledgling Qualified Domestic Institutional Investor (QDII) plan.

''We want to make sure that we fully understand the rules and regulations before we actually enter into the market,'' he said.

Demand for the first wave of QDII products has proven sluggish, analysts have said, in part because of investors' concern that the yuan could appreciate and cut into gains.

REUTERS SBA GC1914 .94 billion) of assets under management.

Over the longer term, JF Asset would also like to win international mandates to manage funds for China's National Social Security Fund and mainland Chinese insurance companies, Tam said.

But the firm has no near-term plans to try to source funds from China's retail market through the country's fledgling Qualified Domestic Institutional Investor (QDII) plan.

''We want to make sure that we fully understand the rules and regulations before we actually enter into the market,'' he said.

Demand for the first wave of QDII products has proven sluggish, analysts have said, in part because of investors' concern that the yuan could appreciate and cut into gains.

REUTERS SBA GC1914