JP Morgan Asset Management will “imminently” launch two ETFs, which offer exposure to hedge fund strategies.
The ETFs, called JPM Equity Long-Short Ucits ETF, will seek to provide exposure to “factors like value, quality, and momentum within developed global equity markets in a liquid and transparent vehicle."
The portfolio will be constructed bottom-up by taking long and short positions in individual equity securities and will be built using a systematic, rules-based investment approach, according to the investment house.
The JPM Managed Futures Ucits ETF will seek to provide “systematic exposure to carry and momentum factors across four asset classes: equities, fixed income, currency, and commodities."
The strategy will also be constructed bottom-up by taking long and short positions in futures markets across these asset classes with the goal of providing returns that are uncorrelated to traditional asset classes.
Both products will list on the London Stock Exchange.
Both ETFs are designed to replicate what JP Morgan believes to be the advantages of hedge fund strategies, including diversification.
Charges for the two ETFs will be announced closer to the launch but Adam Laird, head of ETF strategy for Northern Europe at JP Morgan, said these products are “fully actively managed” ETFs.
Jason Hollands, managing director for business development and communications at Tilney Group, said: “I think this looks set to be a really significant innovation in the rapidly expanding ETF market, providing access to hedge fund-like strategies through liquid, listed securities that will follow quant strategies.
"Investment managers and advisers will undoubtedly want to hear more about the approach, any back testing of risk-adjusted returns and of course the cost structure.”
david.thorpe@ft.com
