JPMAM ‘democratises’ alternatives with platform partnership

JPMAM fintech JP Morgan

13 December 2023
| By Jasmine Siljic |
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J.P. Morgan Asset Management (JPMAM) has announced a partnership with iCapital to broaden access to its alternative investments suite, while also launching two active exchange-traded funds (ETFs).

iCapital is a financial technology platform which enables asset managers and distributors to expand access to private markets.

JPMAM’s partnership with the platform will widen the accessibility of its global alternatives strategies to Australian wholesale investors.

Mark Carlile, JPMAM head of wholesale for Australia and New Zealand, expects this to streamline the investment journey and make alternatives easier to invest in.

“There is a growing appetite and surging demand, especially amongst Australian wholesale investors, to access and increase their allocations to alternatives which provide additional sources of uncorrelated returns, income opportunities, inflation management and diversification to their investment portfolios,” he said.

The partnership represents an important milestone in democratising alternatives, says Andrew Creber, JPMAM Australia and New Zealand chief executive, which is one of the fund manager’s strategic global priorities.

“We are committed to transforming our offerings into an evergreen solution, enabling a wider group of investors to maintain a consistent exposure to the private markets in the long term,” Creber commented.

Expanding its ETF range

Last week, the global asset manager also launched two more active ETFs, bringing its total number of listed products to 11.

The JPMorgan Global Bond Active ETF (Managed Fund) has been listed on Cboe Australia, while the JPMorgan Global Research Enhanced Index Equity Active ETF (Managed Fund) (Hedged) is ASX-listed.

Its Global Bond Active ETF is the second fixed income active ETF it has brought to Australia. 

The fund harnesses the same strategy as its JPMorgan Global Bond Fund and enables investors to add duration to their bond portfolio.

According to Carlile, now is a generally favourable environment for quality fixed income assets as inflation begins to cool.

“An active ETF focused on high quality bonds, [the ETF] invests at least 80 per cent in investment grade bonds, overlaid by a disciplined risk management strategy. 

“The portfolio management team has the ability to tap into a diverse range of alpha sources by investing across countries and sectors, providing investors with quality fixed income and active management in uncertain markets,” Carlile explained.

JPMAM launched its first fixed income ETF in the Australian market in August with the JPMorgan Income Active ETF. 

The firm also listed the JPMorgan Global Research Enhanced Index Equity Active ETF last month. 

The ETF seeks positive alpha at low tracking error and remains sector, style and region neutral. It is also a hedged version of its existing JPMorgan Global Research Enhanced Index (REI) strategy.

Creber described the past 12 months as a “remarkable” time for the business as it grows its active ETF range.

“The solutions we have brought to the market continue to demonstrate our best-in-class objective and look to address the local investors’ needs whether it be looking for equity income, bonds, core global equities or sustainable funds,” he remarked.
 

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