JP Morgan AM launches equity options-based ETF

investmentweek.co.uk:

JPMorgan Global Equity Premium Income UCITS ETF (JEPG) aims to offer investors 7-9% annualised income, paid monthly, with less volatility than its benchmark.

JPMorgan Global Equity Premium Income UCITS ETF (JEPG) aims to offer investors 7-9% annualised income, paid monthly, and appreciation potential with less volatility than its benchmark.

HANetf to launch India internet and e-commerce ETF

Piera Elisa Grassi and Nicolas Farserotu, JEPG's equity portfolio managers, will take small overweight positions in «attractive» companies and small underweights in «less attractive» companies, relative to the index, tobuild a well-diversified higher-quality, lower-beta portfolio.

The fund's other portfolio managers, Hamilton Reiner, Judy Jansen and Matthew Bensen, will then apply an options strategy, in which they will sell index options — a combination of S&P500 and MSCI EAFE — against JEPG's long-only equity portfolio and use the premiums to generate income.

JP Morgan AM adds two Article 9 ETFs to $7bn REI equity ETF platform

Travis Spence, head of ETF distribution in EMEA, 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."

JEPG listed on the London Stock Exchange and Borsa Italiana today (6 December), with a total expense ratio of 35 basis points. It will list on Deutsche Börse Xetra on 7 December and SIX on 20 December.

Equity funds gather £449m inflows after six months of net selling