JP Morgan Asset Management (JPMAM) has unveiled its first exchange traded funds (ETF) targeted at European clients.
The two quantiatively managed strategies will attempt to capture hedged returns by weighting to a range of investable factors.
- The JPM Equity Long-Short UCITS ETF will seek to provide long-short exposure to factors like value, quality, and momentum within developed global equity markets in a liquid and transparent vehicle.
- The JPM Managed Futures UCITS ETF will seek to provide systematic exposure to carry and momentum factors across four asset classes: equities, fixed income, currency, and commodities.
The strategies were designed by JPMAM’s Quantitative Beta Strategies team.
Yazann Romahi, chief investment officer of quantitative beta strategies at JPMAM said: ‘We’re looking to bring the same [hedge fund] benefits of diversification, reduced overall portfolio volatility, and higher portfolio risk-adjusted returns to the ETF wrapper through the launch of these two ETFs.’
Bryon Lake (pictured), international head of ETFs, JPMAM, said: 'Providing investors with institutional-quality hedge fund strategies in a cost-efficient, liquid and tradeable ETF wrapper should help to advance the democratisation of hedge fund investing.
‘This first wave of ETF listings is the next step in our commitment to building out our active, strategic beta and alternative beta ETF capabilities, with a view to serving the needs of clients globally.
'We intend to build on this momentum going into 2018 as we introduce more of JPMAM’s investment capabilities into the ETF vehicle.’