J.P. Morgan Asset Management (JPMAM) has expanded its flagship range of active Research Enhanced Index (ESG) equity ETFs with the listing of JPMorgan Eurozone Research Enhanced Index Equity (ESG) UCITS ETF (ticker: JREZ) on the London Stock Exchange (LSE), Deutsche Börse Xetra, SIX and Borsa Italiana. In addition, JPMAM has added a new hedged share class for JREU in response to investors’ demand.
Benchmarked against MSCI EMU, JREZ will seek to capitalise on JPMAM’s eurozone stock research expertise while maintaining cost efficient, low tracking error exposure to the growth potential of eurozone equities. The new ETF, available with both accumulating and distributing share classes, will be actively managed by Piera Elisa Grassi and Nicholas Farserotu and have a a TER of 25 basis points.
JREZ, classified as Article 8 under the SFDR regulation, will, in line with the rest of JPMAM’s REI equity (ESG) ETF range, integrate the systematic and explicit consideration of ESG factors into the investment decision-making process and apply norms- and values-based screening. Companies involved in certain sectors, like controversial weapons and tobacco, will be excluded.
JPMAM has, today, also listed a CHF hedged version accumulating share class for JREU on the SIX Swiss Exchange, intended to complement JPMAM’s existing REI equity ETF range and adapt to the needs of local markets needs in Europe.
Olivier Paquier, Head of ETF Distribution in EMEA, says: “We are thrilled to further extend our active equity ETF offering. As investors are increasingly looking for innovative tools allowing them to complement existing core exposures, add diversification, or help implement tactical views, we are committed to providing them with a comprehensive suite of transparent and cost-effective solutions. We believe our suite of actively-managed REI (ESG) equity ETFs offers investors an attractive alternative to pure passive investments.”
JPMAM writes that its full range of REI equity ETFs leverages the firm’s long-standing expertise and established track record (30+ years) in REI investing. Using proprietary research, JPMAM REI portfolio managers take small overweight positions in names they find attractive and small underweights in the names they find less attractive. In doing so, JPMAM’s REI portfolios maintain index characteristics while seeking incremental positive excess returns, compounded over time, in a risk-managed environment.