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Press release from Business Wire

J.P. Morgan Survey Indicates Investor Confidence in Latin American IPOs

Wednesday, November 28, 2012

J.P. Morgan Survey Indicates Investor Confidence in Latin American IPOs09:01 EST Wednesday, November 28, 2012 NEW YORK (Business Wire) -- According to a survey released today by J.P. Morgan's Depositary Receipts (DR) business, 70 percent of institutional investors in North America and Europe who responded to the survey recommend that a Latin American company pursue an initial public offering in today's capital markets. Survey participants, who were interviewed in September 2012, believe that despite significant macroeconomic headwinds in Europe and China, Latin America is a region with steadfast domestic markets and attractively-valued companies that demonstrate significant growth potential. “Each year we survey North American and European institutional investors, with the aim of helping our Latin American clients better understand investor sentiment toward companies in the region,” said Candice Teruszkin, Latin America Regional DR Head of J.P. Morgan. “The findings from this year's survey may help Latin American issuers identify ways to improve their market valuations over time and to better compete for and attract capital needed to fund their growth.” The survey, gathered the opinions of 40 institutional investors based in North America and Europe. These investors held, as of June 30 2012, a combined (approximately) $43 billion, or 16 percent, of actively managed equity in Latin American companies1. Other notable findings from the survey include: The majority of the study's participants believe that the Consumer Goods (65%) and Consumer Services (60%) sectors offer the most attractive investment opportunities, given Latin America's growing middle class, rising income levels and low domestic unemployment. Government intervention and trading liquidity are the two greatest challenges Latin American companies face with respect to maintaining a fair market valuation, according to 38% and 28% of survey participants, respectively. A majority of the study's respondents (55%) believe that an ADR program can help a Latin American issuer maintain a fair market valuation, citing the benefits of improved trading liquidity and free float as well as increased exposure to a greater number of potential new investors. More than one-third of the investors surveyed (35%) recommend that Latin American companies that do not adhere to international reporting standards do so, as a means to maintain fair market valuation. For market information on depositary receipts and international equities, please go to www.adr.com. More information on J.P. Morgan's depositary receipt services is also available on www.jpmorgan.com/visit/adr. About the Survey Methodology On behalf of J.P. Morgan's Depositary Receipts Group, Ipreo conducted a telephone survey of global institutional investors from the United States, Canada, the United Kingdom, and several other European countries (Belgium, France, Germany, the Netherlands, Sweden, and Switzerland) in September 2012. In total, Ipreo received feedback from 40 participants who invest in Latin America. As of June 30, 2012, these participants' firms managed a combined $807.6 billion in equity assets, $43.0 billion of which represented holdings in Latin American companies, or 16% of all Latin American equities held by active investment managers outside of Latin America. About J.P. Morgan's Corporate & Investment Bank J.P. Morgan's Corporate & Investment Bank is a global leader across banking, markets and investor services. The world's most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $18.2 trillion of assets under custody and $393 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. Further information about J.P. Morgan is available at www.jpmorgan.com. This document is for information purpose only. It is intended neither to influence your investment decisions nor to amend or supplement any agreement governing your relations with J.P. Morgan. J.P. Morgan shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of the mentioned information. J.P. Morgan does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information herein provided, either no representations as to the legal, regulatory, financial, tax or accounting implications of the matter in this document. © 2012 JPMorgan Chase & Co. All rights reserved. Ombudsman J.P. Morgan: Tel: 0800 – 7700847/E-mail: ouvidoria.jp.morgan@jpmorgan.com. 1 According to Ipreo Media:J.P. MorganAllie Libby, +1 212-270-1714allie.libby@jpmorgan.com