London Stock Exchange welcomes J.P. Morgan Asset Management celebrating the launch of three new funds
LONDON STOCK EXCHANGE WELCOMES J.P. MORGAN ASSET MANAGEMENT TO CELEBRATE THE LAUNCH OF THEIR RESEARCH ENHANCED INDEX (ESG) ETFS
Today the London Stock Exchange markets were opened by J.P. Morgan Asset Management (JPMAM) to celebrate the launch of their three new funds: JPM Europe Research Enhanced Index Equity (JREE), JPM US Research Enhanced Index Equity (JREU) & JPM Global Research Enhanced Index Equity (JREG) UCITS ETFs.
These actively managed ETFs seek to provide investors index-like characteristics while exploiting stock-specific insight from JPMAMs network of 70 dedicated career research analysts. The funds will be benchmarked against MSCI Europe, S&P, and MSCI World respectively, with total expense ratios of 0.25% each. The funds will systematically consider ESG factors, which are of growing importance to investors and can have significant implications for long-term performance. This ESG framework is combined with a values-based screen that will exclude stocks that partake in certain activities such as the manufacturing of controversial weapons.
The Portfolio Managers will take large numbers of small overweight and underweight positions to create a divergence from benchmark weights and thus deliver funds that target 0.60%-0.75% of alpha annualised over the course of a full market cycle.
Said Bryon Lake, International Head of ETFs, JPMAM
“We are delighted to be delivering these first-of-their-kind active equity ESG ETFs. This is the type of innovation our clients and the industry have been looking for. These ETFs seek to incorporate the best of both active and passive management and can play a versatile role in portfolios, including as a cost-effective core exposure to certain equity markets or as an asset allocation tool. Since launching our first European ETFs, a year ago this November, we now offer solutions across equities, fixed income and alternatives. We look forward to continuing to build out our range over the coming years with active, strategic beta and passive investment strategies which leverage the best of JPMAM’s investment capabilities.”