New Listing

JP Morgan AM unveils Europe’s first active UK equity ETF in double launch

JPMAM has also launched a climate change thematic ETF

Theo Andrew

a man wearing a suit

JP Morgan Asset Management (JPMAM) has launched two active ETFs comprising a climate strategy and Europe’s first active UK equities ETF, ETF Stream can reveal.

The JP Morgan Climate Change Solutions UCITS ETF (T3MP) is listed on the London Stock Exchange, Deutsche Boerse, SIX Swiss and Borsa Italiana with a TER of 0.55%.

Meanwhile, the JP Morgan UK Equity Core UCITS ETF (JUKE) is listed on the LSE with a total expense ratio (TER) of 0.25%.

JUKE will be benchmarked against the FTSE All-Share index and will seek to outperform the UK stock market, delivering incremental excess returns by taking small overweight positions in “quality businesses that are attractively valued”.

Conversely, it will underweight companies that do not meet those criteria and will remain close to the sector level weighting of the index. It will be actively managed by James Illsley, Callum Abbot, Zach Chadwick and Christopher Llewelyn.

Olivier Paquier (pictured), head of ETF distribution for EMEA at JPMAM, said: “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.”

T3MP is the first sustainable active thematic ETF of JPMAM’s ETF range and will target companies producing clean energy, improving the electric grid and those investing in less carbon-intensive forms of agriculture, construction or transportation.

Alongside its portfolio management teams, the firm will select stocks via its proprietary artificial technology, Themebot, which screens 13,000 companies globally. The selected stocks will then be assessed by the firm’s research analyst team.

The ETF will be managed by Francesco Conte, Yazann Romahi and Sara Bellenda and will hold 50-120 companies at launch.

T3MP is labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Paquier said: “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.”

JPMAM has been prolific in expanding its active ETF range this year. In May, the firm launched two active equity ETFs tracking Japan and eurozone equities.

The US giant added it has launched a Swiss franc hedged share class for the JPMorgan US Research Enhanced Index Equity ESG UCITS ETF (JREU) on the SIX Swiss exchange.

In March, JPMAM launched two actively-managed China fixed income ETFs, the JPM RMB Ultra-Short Income UCITS ETF (JCST) and the JPM BetaBuilders China Aggregate Bond UCITS ETF (JCAG).

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