JP Morgan Asset Management is set to list its first two European ETFs, the company has announced.
The JPM Equity Long-Short Ucits ETF and the JPM Managed Futures Ucits ETF are set to be listed on the London Stock Exchange, with both ETFs being made available to investors across key European markets.
The JPM Equity Long-Short Ucits ETF will aim to provide long/short exposure to factors such as value, quality, and momentum with developed global equity markets in a liquid and transparent vehicle.
The portfolio will take long/short positions in individual equity securities and will be built using a systematic, rules-based approach.
The second fund, the JPM Managed Futures Ucits ETF, will seek to provide systematic exposure to carry and momentum factors across equities, fixed income, currency, and commodities.
The strategy will also take long and short positions in futures markets across these asset classes. This is with the goal of providing returns uncorrelated to traditional asset classes.
Built by JPM AM’s quantitative beta strategies team, both funds are designed to provide access to the potential diversification risk-return efficiency for which hedge fund strategies are valued – in a more liquid, transparent and cost-effective format.
Commenting on the launches, the firm’s CIO of quantitative beta strategies, Yazann Romahi said: ‘When we started doing research on alternatives more than a decade ago, we built on the academic research which suggested that a large portion of hedge fund returns could actually be accessed using a bottom-up, systematic, rules-based approach.
‘Now we’re looking to bring the same benefits of diversification, reduced overall portfolio volatility, and higher portfolio risk-adjusted returns to the ETF wrapper through the launch of these two ETFs.’