JP Morgan AM adds three new active ETFs

Oksana Patron

26 May 2023

J.P. Morgan Asset Management (JPMAM) has announced the launch of three more listed active exchange traded funds (ETFs) on the Australian Securities Exchange (ASX).

All three latest additions are from its Equity Premium Income Strategy suite of funds, which are managed by Hamilton Reiner and Raffaele Zingone, and will include: the JPMorgan Equity Premium Income Active ETF (Hedged) (JHPI), JPMorgan US 100Q Equity Premium Income Active ETF (JPEQ) and JPMorgan US 100Q Equity Premium Income Active ETF (Hedged) (JPHQ).

The firm said the decision to launch three new active ETFs was driven by its Australian clients and their expectations to have more options and flexibility to access the strategy and followed the clients’ interest in the launch of JPMorgan Equity Premium Income (JEPI), which is currently the world’s largest actively managed ETF with AUM of $38.3 billion.

“JHPI is a hedged share class of JEPI, operating in the same manner and same investment strategy, but uses hedging to minimise exchange rate fluctuations,” Mark Carlile, Head of Wholesale, Australia and New Zealand, said.

“As investors navigate the high rates and inflationary environment, this solution seeks to provide incremental income, through monthly distributions, with lower volatility than the U.S. stock market and the added benefit of dampening the effect of exchange rate fluctuations.

“In addition, JPEQ and JPHQ were built for investors who are seeking consistent income while having a preference for large cap growth and in particular, technology companies in Nasdaq’s marketplace.

“With the listing of these three active ETFs, we are now able to offer a broad range of active ETFs to suit different client needs and demands.”