J.P. Morgan Asset Management (JPMAM) has announced the local registration of its flagship equity premium income ETFs in Singapore.
These include the JPMorgan US Equity Premium Income Active UCITS ETF (JEPI), the JPMorgan Nasdaq Equity Premium Income Active UCITS ETF (JEPQ) and the JPMorgan Global Equity Premium Income Active UCITS ETF (JEPG).
They are now accessible to Singapore investors, following the approval of registration from the Monetary Authority of Singapore (MAS).
These actively-managed UCITS equity ETFs are designed with the aim to deliver an attractive distributable yield and capture a significant portion of the returns from the equity exposure associated with their respective benchmarks: the S&P 500 Index (JEPI), the Nasdaq-100 Index (JEPQ) and the MSCI World Index (JEPG), according to a statement by the US asset manager.
The ETFs also incorporate an options strategy to generate income while lowering the volatility of the overall portfolio. By combining active equity portfolios with index options, the ETFs aims to strike a balance across yield, capital growth and risk, presenting investors with monthly income opportunities and appreciation potential from equity markets, with less volatility.
Philippe El-Asmar (pictured), head of Apac ETF, digital & direct at JPMAM, commented: “The combination of income generation and downside risk management makes them highly appealing to individual and institutional investors. We are excited to extend our global active ETF expertise and these unique solutions to Singapore investors.”
Jacklyn Goh, head of Singapore intermediary business at JPMAM, added: “This makes available another one of our innovative investment vehicle to serve the evolving needs of investors in Singapore seeking income and attractive opportunities globally.”
According to JPMAM’s newly published Guide to ETFs – Asia, the Apac ETF market has demonstrated robust growth, with AUM reaching $1.8trn and increasing at an annual rate of approximately 24%, doubling every three years.
This growth rate outpaces other ETF regions, where the annual growth rate is around 16%, doubling every five years. Worldwide, JPMAM manages $242bn across 130 ETFs.
