JP Morgan Asset Management has launched a large-cap global equity exchange-traded fund (ETF) on the Australian Securities Exchange (ASX), increasing its active ETF offerings in the Australian market to 12.
The JPMorgan Global Select Equity Active ETF (ASX code: JGLO) is a risk-controlled research portfolio targeting 70 to 100 of the fund’s high-conviction global investment ideas, featuring significant holdings in companies such as Microsoft, Amazon, Nvidia and Apple.
JGLO mirrors the strategy of the existing JPMorgan Global Select Equity Strategy, which is a diversified global equity portfolio that aims for strong performance across various market conditions while using a style-agnostic approach.
JP Morgan Asset Management global portfolio manager Helge Skibeli pointed out the ETF is expected to attract investors interested in capital growth and can act as a central element in portfolios for those with a high-risk, high-return profile who want daily access to capital.
“What we are seeing is that regardless of the market environment, investors are continuing to demand an active strategy that seeks to capture attractive return opportunities without taking undue risk,” Skibeli said.
“JGLO provides an attractive solution designed to help investors realise their financial goals and round out their portfolios with conviction.”
The investment manager highlighted the new fund draws on the expertise of more than 80 research analysts studying over 2500 stocks globally, while carrying a management fee of 55 basis points.
“With inflation starting to cool and market expectations of a soft/no landing, it’s time for investors to put their cash to work and consider an alpha engine that maximises the capabilities of our global research terms, but at a cost of 55 basis points, considerably lower than industry average,” JP Morgan Australia and New Zealand head of wholesale Mark Carlile said.
The introduction of this fund comes after the debut of two fixed-income ETFs last year.