JP Morgan Asset Management (JPMAM) and Vanguard Australia have teamed up to launch four low-cost exchange-traded funds (ETF) across conservative, balanced, growth and high-growth asset allocation strategies.
“This partnership is the first of its kind globally between our organisations and we are proud to be leading the charge in Australia,” Vanguard Investments Australia managing director Daniel Shrimski noted.
The offerings are a combination of Vanguard’s passive ETF strategies and JP Morgan’s active investment approach. They are designed to meet the growing demand for model portfolios by financial planners who are increasingly using them to offer diversified strategies to their clients.
“The four strategic asset allocation models – conservative, balanced, growth and high growth – are constructed by JPMAM’s global multi-asset solutions team using our ‘Long-Term Capital Market Assumptions’, now in its thirtieth year,” JPMAM Australia and New Zealand head of wholesale Mark Carlile explained.
“Last year’s report reinforced the importance of building goal-aligned portfolios that can withstand market volatility and seize growth opportunities. These low-cost models, which combine active ETFs from JPMAM and passive index ETFs from Vanguard, are a true reflection of this.”
The model ETFs are priced from 46 basis points and will be available on third-party platforms.
According to Vanguard Investments head of financial adviser services Rachel White, the models would also enable the manager to extend its reach into the broker and private wealth segment, while continuing to support its long-standing adviser base.
“Allocating between active and passive is an active decision. As a leading global active asset manager and a long-term advocate for active investing, we are excited to partner with a global leader in passive investing to bring the expertise of both to Australian wealth managers and advisers,” JPMAM Australia and New Zealand chief executive Andrew Creber said.
