JP Morgan Asset Management has launched a European equity premium income active Ucits ETF with the ticker JEPE.
The ETF, across both its distribution and accumulated share classes, is now listed on major European exchanges, including the London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana, and SIX Swiss Exchange.
JEPE is designed to offer investors consistent monthly income with lower volatility by combining a diversified, actively-managed, beta 1.0 European equity portfolio with a disciplined options overlay.
The ETF, which has a TER of 35 basis points, seeks to provide a solution for income-seeking investors, while reducing total equity risk, by generating distributable income through both dividends and premiums from selling out-of-the-money index call options.
The strategy aims to deliver an annual income yield of 8–10%, paid monthly, with lower volatility and beta than the MSCI Europe Index.
The ETF will be managed by Hamilton Reiner, Piera Elisa Grassi, Nicholas Farserotu, Matt Bensen, Judy Jansen, and Sebastian Wiseman.
Travis Spence, Global Head of ETFs at JP Morgan Asset Management, said: “Having now managed these strategies globally in active ETFs since 2020, investors have come to appreciate the two main outcomes: a consistent income stream and lower volatility access to the equity markets.
“JEPE now provides the ability to achieve these outcomes in European equities for the first time.”
