JP Morgan Asset Management (JPMAM) has expanded its active equity ETF offering with two new products.
JPMorgan Climate Change Solutions UCITS ETF has listed on the LSE (ticker: T3MP), Deutsche Börse Xetra (ticker: TEMP), SIX (ticker: TEMP) and Borsa Italiana (ticker: TEMP) and JPMorgan UK Equity Core UCITS ETF (ticker: JUKE) has listed on the London Stock Exchange (LSE) and Cboe NL.
T3MP is the first sustainable active thematic ETF of JPMAM’s UCITS ETF range, complying with Article 9 classification, under SFDR regulation. T3MP implements a proprietary investment strategy that invests in companies which are developing and scaling solutions to address climate change. This includes companies that are producing clean energy; improving the electric grid; investing in less carbon-intensive forms of agriculture, construction, or transportation; or developing technologies to reduce waste.
T3MP leverages the active insights of JPMAM’s global research and portfolio management teams, a dedicated sustainable investing team and the firm’s proprietary artificial intelligence technology called Themebot. The ETF will first use Themebot to screen nearly 13,000 stocks globally to identify companies that are acting on climate change, from established players adapting their business models to early-stage innovators developing future technologies for the low carbon transition. JPMAM’s 90+ research analyst team will then assess the fundamental investment case for each of the stocks identified by ThemeBot, to help construct a differentiated and high-conviction portfolio.
Commenting on the launch of T3MP, Oliver Paquier Head of ETF Distribution in EMEA says: “Investors are increasingly looking for meaningful solutions to address climate change. We are excited to help address our clients’ needs through the launch of T3MP, offering the best of JPMAM’s active management capabilities combining for the first time artificial and human intelligence in an ETF. Investors will be able to access an advanced strategy that seeks to capture innovative investment opportunities and solutions facilitating the low carbon transition, while pursuing long-term capital appreciation.”
T3MP will be managed by portfolio managers Francesco Conte, Yazann Romahi and Sara Bellenda, who each bring over 20 years of industry experience. The portfolio managers will select their highest conviction ideas, drawing on JPMAM’s research analyst insights, as well as the climate change insight and stewardship experience of JPMAM’s Sustainable Investing team, in order to build an unconstrained portfolio of companies leading the way in delivering climate change solutions. At launch, the sustainable active thematic ETF will have 50-120 holdings and a TER of 55 basis points.
JPMAM has today also listed JUKE, the industry’s first active UK equities UCITS ETF. Benchmarked against the FTSE All-Share Index (Net return), JUKE seeks to outperform the UK stock market by implementing a proprietary investment strategy. Backed by a nearly 30-year history, JUKE’s investment process aims to deliver incremental excess returns that adds up over time by taking small overweight positions in quality businesses that are attractively valued and whose outlook is promising, while taking small underweight positions in stocks not meeting these characteristics. At a sector level, weightings will be closely aligned to the index.
JUKE will be actively managed by James Illsley, Callum Abbot, Zach Chadwick and Christopher Llewelyn who, on average, have over 21 years of industry experience specialising in UK Equities. JUKE charges a TER of 25 basis points for both accumulating and distributing share classes.
Commenting on the launch of JUKE, Paquier, says: “With the UK having maintained its position as one of the strongest performing regions since the beginning of 2021 and historically been well-placed in investors’ allocations, JUKE now offers investors a low active risk approach on UK equities, easily accessible in an ETF format for the first time. We believe that JUKE will offer investors a unique opportunity to invest in UK equities, which unlike a tracker, aims to deliver incremental excess returns at an attractive fee level.”
The addition of T3MP and JUKE brings J.P. Morgan Asset Management’s full suite of UCITS ETFs to 31 products, with more than USD8.1 billion in assets under management. The firm writes that it currently houses the largest active equity ETF offering in Europe and is currently No. 1 in active ETFs YTD flows globally (as of 31 March 2022, Bloomberg).