Canadian launch of JEPI and JEPQ ETFs provide
investment opportunities for investors
TORONTO,
Oct. 1,
2024 /CNW/ - J.P. Morgan Asset Management (JPMAM)*, a
leading global asset manager with US$3.3. Trillion1 in assets
under management globally, announced today that it is expanding its
business in Canada with the launch
of two active ETFs for Canadian investors. Starting on October 1, 2024, Canadians will be able to invest
in JPMorgan US Equity Premium Income Active ETF (TSX: JEPI) and
JPMorgan Nasdaq Equity Premium Income Active ETF (TSX: JEPQ),
listed on the Toronto Stock Exchange. This launch advances JPMAM's
goal of expanding its presence within Canada, offers Canadians increased access to
global investment strategies, and provides an opportunity to tap
into the wealth management space through financial advisors.
"The introduction of the J.P. Morgan ETFs in Canada is an important advancement of our
Canada market strategy, with these
offerings representing the first of a broad suite of active ETF
solutions we plan to deliver over time," said Travis Hughes, Head of Canada, J.P. Morgan Asset Management. "As home
to the first ETF, Canada is an
ideal market for these offerings. The listing of JEPI and JEPQ is a
significant milestone for JPMAM as it brings focus to both the
firm's success as an active manager and the breadth and depth of
its global products."
Reflecting JPMAM's strategy, the two ETFs provide the potential
for capital appreciation through a focus on equities and offer
Canadian investors the opportunity to access a steady income
stream, making them appealing for income-focused
investors. These ETFs provide broad exposure to U.S. stocks:
those included in S&P 500 for JEPI and the Nasdaq-100 Index for
JEPQ. Managed by J.P. Morgan's experienced investment team,
investors benefit from the investment expertise, strategic
approach, and flexibility and agility that come with actively
managed ETF products.
"As a leading global active manager, we are excited to bring our
premier active management capabilities to Canada in the ETF format, and this is just the
beginning. We've been serving institutions in Canada for 41 years, and this launch marks a
significant milestone, enabling us to offer to a wide range of
Canadian investors the many advantages of ETFs, as we aim to
deliver the highest quality investment capabilities to our
clients.," said George Gatch, CEO of
J.P. Morgan Asset Management.
JPMAM launched its first ETF in the U.S. in 2014, and in
Europe and Asia in 2018. Over the past decade, JPMAM's
global ETF platform has expanded. Today, it is the 2nd
largest active ETF provider by assets under management2,
nearly $190 billion in assets under
management, and 100+ ETFs across different asset classes.
Hamilton Reiner, Portfolio Manager, Head of U.S. Equity
Derivatives, J.P. Morgan Asset Management said, "We are
particularly proud of the success of JEPI and JEPQ strategies in
other markets. These strategies are designed to provide attractive
income and risk management through a combination of high-quality
equity investments and sophisticated options strategies. In today's
market environment, where income generation and volatility
management are paramount, JEPI and JEPQ offer a compelling approach
to achieving these goals while still participating in the growth
potential of the equity markets."
About JEPI and JEPQ:
- JEPI and JEPQ are designed to provide a balanced approach to
income generation and equity exposure, making these ETFs suitable
for investors looking for a combination of income, risk management,
and growth potential.
- JEPI and JEPQ aim to deliver a significant portion of the
returns associated with the S&P 500 Index and Nasdaq-100 Index,
respectively, but with less volatility.
- To generate income, these ETFs employ an options strategy of
selling index-level, out of the money call options. The premiums
received from selling these call options provide an additional
source of income, in combination with the dividends from the
underlying stock portfolio. Additionally, the covered call strategy
may offer some downside protection, as the premiums collected can
offset potential losses in the underlying stock positions.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of
US$3.3 trillion (as of June 30, 2024), is a global leader in investment
management. J.P. Morgan Asset Management's clients include
institutions, retail investors and high net worth individuals in
every major market throughout the world. J.P. Morgan Asset
Management offers global investment management in equities, fixed
income, real estate, hedge funds, private equity and liquidity. For
more information: www.jpmorganassetmanagement.com.
|
* Legal entity in
Canada: JPMorgan Asset Management (Canada) Inc.
1 Source: J.P. Morgan Asset Management, as of June
30, 2024.
2 Source: Data according to Bloomberg, Fact set and
J.P. Morgan Asset Management as of August 1, 2024
|
Commissions, trailing commissions, management fees and expenses
all may be associated with ETF investments. Please read the
prospectus before investing. ETFs are not guaranteed, their values
change frequently and past performance may not be repeated.
This press release contains forward-looking statements with
respect to JPMAM's Canada market
strategy. The forward-looking statements are not historical facts
but reflect JPMAM's current expectations regarding future events.
These forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results or events to
differ materially from current expectations, including, but not
limited to, general economic and market factors. Although the JPMAM
believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not
guarantees of future performance and, accordingly, readers are
cautioned not to place undue reliance on such statements due to the
inherent uncertainty therein. JPMAM undertakes no obligation to
update publicly or otherwise revise any forward-looking statement
or information whether as a result of new information, future
events or other factors which affect this information, except as
required by law.
This press release is issued in Canada, by JPMorgan Asset Management
(Canada) Inc., which is a
registered Portfolio Manager and Exempt Market Dealer in all
Canadian provinces and territories except the Yukon and is also registered as an Investment
Fund Manager in British Columbia,
Ontario, Quebec and Newfoundland and Labrador.
Nasdaq®, Nasdaq-100 Index®, Nasdaq
100® and NDX® are registered trademarks of
Nasdaq, Inc. (which with its affiliates is referred to as the
"Corporations") and are licensed for use by J.P. Morgan Asset
Management (Canada) Inc. and J.P.
Morgan Investment Management Inc. JPMorgan Nasdaq Equity Premium
Income Active ETF has not been passed on by the Corporations as to
its legality or suitability. This ETF is not issued, endorsed,
sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THIS ETF.
SOURCE J.P. Morgan Asset Management Canada