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Chase Manhattan's acquisition of JP Morgan will have little impact on the investment fund arm of Jardine Fleming, according to a JF Asset Management executive.

Last month, Chase Manhattan completed the takeover of Jardine Fleming's parent company Robert Fleming.

JF Asset Management managing director Blair Pickerell said there was little overlap in the fund management businesses of Jardine Fleming and Chase Manhattan in Asia.

'JP Morgan is not really in the retail mutual fund business in Asia,' Mr Pickerell said.

JF Asset Management took on Chase Manhattan's six finance management staff in Asia after the merger.

Mr Pickerell was speaking after the opening of the company's renovated investment centre in Jardine House.

JF Asset Management also launched an investor education campaign to encourage buying of mutual funds as penetration in Hong Kong is low compared with other developed economies.

In the United States, penetration stands at 49 per cent of adults against 7.8 per cent in the SAR.

'The penetration rate of mutual funds in Hong Kong is very low by developed-country standards - we reckon that the impetus to improve this revolves around education,' Mr Pickerell said.

Mutual funds provided one of the best ways to ensure savings were not eroded by inflation, he said.

In the past decade, the cost of living has risen by 66 per cent while the value of bank deposits has risen by only 45 per cent.

The value of a lump sum invested at the start of a decade in a cross-section of global JF mutual funds would have risen by 253 per cent over the same period.

Hong Kong investors focused too much on short-term investment which led to smaller gains in the long term, Mr Pickerell said.

'Almost by definition, people tend to buy at the wrong time and sell at the wrong time,' he said.

JF Asset Management forms part of Chase Fleming Asset Management after the merger of Chase Manhattan and Robert Fleming.

The combined operation has US$178 billion of assets under management.



JF Asset Management plays plays down impact of union