The new products include two active ETFs – the first to be listed with SIX in two years. Unlike most ETFs, which are managed passively, managers of these active ETFs review and optimize fund composition. They buy and sell selected shares or other securities. This means they can respond immediately to incipient market trends. Active ETFs thereby aim to achieve a higher return than their benchmark, such as the SMI® – Switzerland’s blue chip index. Providers of active ETFs undertake to disclose detailed product information. As with passive ETFs, active ETFs offer investors the benefits of on-exchange trading, such as security, fair pricing and transparency.
The new J.P. Morgan Asset Management products listed with SIX offer the following solutions: a diversified investment in bonds with very short maturities from a broad spectrum of corporate and government issuers with good ratings (investment-grade); an investment in emerging market bonds; an ETF on short-dated euro-denominated government bonds; and a solution that targets hedge fund-like returns through the use of derivatives. “In developing our ETF business, we are seeking to make J.P. Morgan Asset Management’s acknowledged, long-established expertise available in the ETF domain. When talking to investors, we found that there was demand for active, smart fixed-income solutions, as well as for strategies with low correlation to the broader market that can help equip portfolios to cope with rising volatility,” explains Bryon Lake, Head of International ETFs at J.P. Morgan Asset Management.
For more than 150 years, J.P. Morgan Asset Management has offered investment solutions for institutions, financial advisors and private investors worldwide, with assets under management of more than CHF 1.7 trillion as at end-2017. J.P. Morgan Asset Management is part of the global financial services group J.P. Morgan Chase & Co., with branches all over the world, a global offering and wide-ranging expertise in all relevant asset classes combined with a strong local presence. Swiss clients have since 1995 been served from Zurich and Geneva.