JP Morgan Asset Management has expanded its offering of exchange-traded funds (ETF), introducing two income-focused, actively managed funds to the Australian market, including its inaugural fixed income ETF.
The JPMorgan Income Active ETF (JPIE) was launched on the Cboe Australia exchange yesterday, offering a high-conviction, fixed income strategy focused on generating consistent income with lower volatility and additional flexibility.
“We are excited to list our first active fixed income ETF. The search for consistent and stable income continues to resonate with our clients, especially in the current interest rate environment when making active decisions with full flexibility is critical,” JP Morgan Australia and New Zealand head of wholesale Mark Carlile said.
“This strategy has the flexibility to make tactical allocations, adjusting the portfolio to manage duration and risk. As a fully flexible global fixed income solution, this strategy looks for opportunities to upgrade credit quality, increase liquidity and capture yield, whilst managing duration across different fixed income sectors.”
In addition to introducing the JPIE fund, the asset manager will also launch the JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF (JREM), providing investors with an opportunity to capitalise on the growth potential of developing economies.
The JREM ETF is designed to outperform regular market benchmarks while keeping performance differences low. It achieves this by using JP Morgan’s Research Enhanced Index (REI) approach, which seeks better returns with little deviation from market trends across sectors, styles and regions.
“JREM is a great addition to our Global REI suite of products, providing investors access to emerging markets but in a fairly conservative manner,” Carlile said.
When we look at the big picture, the economic and demographic growth story within emerging markets is still very compelling and an important inclusion in a well-diversified investment portfolio – particularly for those focused on the longer-term fundamentals and looking to capture the growth opportunities.”
The announcement brings the total number of JP Morgan’s ETF offerings to nine in the past 12 months following the launch of three new income-focused ETFs in May.