JP Morgan Asset Management (JPMAM) has expanded its range of income-focused actively managed exchange-traded funds (ETF) with the launch of three offerings into the Australian market.
The JPMorgan Equity Premium Income Active ETF (Managed Fund) (Hedged) (JHPI), JPMorgan US 100Q Equity Premium Income Active ETF (Managed Fund) (JPEQ) and JPMorgan US 100Q Equity Premium Income Active ETF (Managed Fund) (Hedged) (JPHQ) became available on the Australian Securities Exchange today and expand the JPMAM Equity Premium Income Strategy suite of funds.
JPMAM Australia and New Zealand head of wholesale Mark Carlile said the decision to add the three ETFs was based on market interest and specific requests from key clients following the launch of JEPI for more options for Australian investors to access the underlying fund strategy.
As such, JHPI is a hedged share class of JEPI and will operate in the same manner with the same investment strategy, but apply hedging to minimise exchange rate fluctuations.
“As investors navigate the high rates and inflationary environment, this solution seeks to provide incremental income, through monthly distributions, with lower volatility than the US stock market and the added benefit of dampening the effect of exchange rate fluctuations,” Carlile said.
He added this approach was being used with the JPHQ fund, which would be a hedged version of the JPEQ fund, with both pitched at investors seeking income while having a preference for large-cap growth stocks and in particular technology companies in Nasdaq’s marketplace.
The launch of the three new ETFs follows the release of the JEPI offering in November 2022 alongside the JP Morgan Global Research Enhanced Index Equity Active ETF, which provides active global equity exposure that is country, sector and style neutral with an active stock picking overlay, and two actively managed funds covering climate change that were released in December last year.
