J.P. Morgan Asset Management (JPMAM) has launched the JPMorgan Global Equity Premium Income Ucits ETF (ticker: JEPG).
This new ETF, an actively managed strategy, aims to provide investors with a combination of regular income and potential capital growth while maintaining lower volatility than its benchmark.
The ETF’s strategy involves a mix of equities and options. The equity portfolio, managed by Piera Elisa Grassi and Nicolas Farserotu, is constructed using insights from JPMAM’s research analysts. This portfolio aims to provide a higher-quality, lower-beta investment, diversified across various regions and sectors.
Additionally, JEPG employs an options strategy managed by Hamilton Reiner, Judy Jansen and Matthew Bensen. This involves selling index options against the equity portfolio, using the premiums to generate income. The options strategy focuses on combining S&P 500 and MSCI EAFE index options.
JPMAM’s structured equity solutions team, led by Hamilton Reiner, has a significant track record in managing options strategies, including a $30 billion equity premium income strategy in the US.
JEPG has been listed on the London Stock Exchange and Borsa Italiana, with upcoming listings on Deutsche Börse Xetra and SIX.
The ETF offers a Total Expense Ratio of 35 basis points and is available in both distribution and accumulating share classes. The strategy provides an option for investors seeking monthly income and a conservative equity solution with exposure to equity markets.
Travis Spence, head of ETF distribution in Emea, JPMAM, said, “Investors continue to seek high levels of income, but they also want exposure to stock markets with less volatility. We have seen the rapid growth of our option overlay equity strategies in the past couple of years, and we are delighted to be bringing a global premium income version of our market-leading US-domiciled Equity Premium Income strategy to the Ucits ETF market.”
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