J.P. Morgan has launched new funds seeking to deliver JPM active management expertise and risk controls in an ETF wrapper.
On Thursday, J.P. Morgan Asset Management announced the launch of two actively-managed transparent equity ETFs, the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan International Growth ETF (JIG). Delivered through a traditional transparent ETF structure, both active equity ETF funds will employ the expertise of J.P. Morgan’s Global Equities platform, seeking to improve returns and better manage risk within portfolios as investors navigate today’s investment environment.
JEPI targets a significant portion of S&P 500 returns with less volatility, seeking annualized income distributed monthly. The fund leverages an experienced equity management team comprising more than 50 years of combined experience and headed by 32-year industry veteran Hamilton Reiner as the lead portfolio manager, based in New York.
“Regardless of the market environment, investors demand an active strategy that captures income without taking on undue risk,” said Hamilton Reiner, Portfolio Manager and Head of U.S. Equity Derivatives at J.P. Morgan Asset Management. “JEPI provides an attractive solution to help investors realize their financial goals and round out their portfolios with conviction.”
JIG seeks high quality growth opportunities for U.S. investors looking for broad, diversified access and exposure to the international equity market through an ETF. The fund is managed by an experienced J.P. Morgan team, with 21-year veteran Shane Duffy lead portfolio manager, based in London.
“It was important that we took our time to develop thoughtful and disciplined actively managed equity ETF solutions that give investors tools to pursue better outcomes,” said Bryon Lake, Head of Americas ETF Distribution at J.P. Morgan Asset Management. “We are eager to combine our firm’s global active equity management platform with the benefits of the ETF technology as part of the next wave of active solutions we bring to market for our clients.”
“The move by J.P. Morgan makes sense,” said Dave Nadig, ETF Trends Director of Research. “They’ve got the bona fides for these strategies, and the pricing is in line with other beyond-beta products. The only surprise is that they’re using the traditional, fully transparent wrapper rather than one of the new semi-transparent structures. In that sense, it’s bucking the trend.”
J.P. Morgan’s Global Equities platform manages $518 billion across US Equity ($286bn), International Equity ($111bn) and EMAP ($121bn) investment strategies. With collaboration among 350 equity investment professionals across seven locations. J.P. Morgan has been managing equity strategies for more than 30 years.
More information is available at https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/etfs.