JPMorgan Equity Premium Income Active ETF (Managed Fund) (ASX: JEPI)
The Fund seeks to deliver monthly distributable income and equity market exposure with lower volatility.
Seeking opportunities for consistent income with lower volatility
A rising interest rate environment is prompting investors to rethink their approach to generating income. But market volatility and persistent inflation bring a new set of challenges.
JPMorgan Equity Premium Income ETF (JEPI) seeks to deliver monthly distributable income and equity market exposure with lower volatility1.
Equity exposure with lower volatility2
JEPI employs a proven bottom-up research process as it seeks defensive equity exposure, with stock selection based on our proprietary risk-adjusted stock ranks.
A disciplined overlay uses call options to generate distributable monthly income. The option premium generated can vary depending on market volatility.
Seeking income as the outcome
With JEPI, we seek to pay out all the income the portfolio makes on a monthly basis, net of fees. Income is derived from both dividend and options premium – an innovative approach that aims to produce a consistent monthly income stream, although this is not guaranteed.
Replacing exposure to duration and credit risk
Aggressive central bank tightening to combat inflation at multi-decade highs has generated significant volatility within bond markets. Meanwhile, the weakening growth outlook and possible recession in Europe and the U.S. could see the value of corporate high yield and emerging market debt drop significantly.
As a part of an overall allocation, JEPI can provide opportunities for income diversification and complements a balanced portfolio by reducing exposure to asset classes that may be more prone to credit, duration or interest rate risks.
1 The fund seeks to meet its stated objectives, there is no guarantee they will be met.
2 Risk management does not imply elimination of risks. Provided to illustrate the investment process. Dividend or returns are not guaranteed. Please refer to offering documents for details on distribution policy. Diversification does not guarantee positive returns or eliminate risks of loss.
The investment objective of the Fund is to seek current income while maintaining prospects for capital appreciation.
This product is likely to be appropriate for a consumer seeking capital growth and regular income, to be used as a satellite/small allocation within a portfolio where the consumer has a high risk-return profile and needs daily access to capital. The minimum suggested timeframe for holding investments in the Fund is 5 years.
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Before investing, obtain and review the Product Disclosure Statement of the Fund and Target Market Determination which have been issued by Perpetual Trust Services Limited, ABN 48 000 142 049, AFSL 236648, as the responsible entity of the fund available from https://am.jpmorgan.com/au/ to understand the various risks associated with investing in the Fund and in making any investment decision. Past performance is not a reliable indicator of future performance and investors may not get back the full amount invested. Future performance and return of capital is not guaranteed. Information is considered correct at the time of issue but no liability for errors or omissions will be accepted by JPMorgan Asset Management (Australia) Limited or its affiliates. This document is intended solely for the person to whom it is provided by the issuer. ETFs have fees that reduce their performance, indexes do not. Investors cannot directly invest in an index. The market price is generally determined using the official closing price of the Fund. Provided for reporting purposes only and should not be considered as offer, research, advice or recommendations to purchase or sell any particular security. Each individual security is calculated as a percentage of the net assets. Holdings in actively managed portfolios are subject to change from time to time. The Fund seeks to achieve its stated objectives, there is no guarantee they will be met. Dividends or returns are not guaranteed. Please refer to offering documents for details on distribution policy. Due to rounding, values may not total 100%. Top holdings, sector and country or region excludes cash. Fund holdings and performance are likely to have changed since the report date. No provider of information presented here, including index and ratings information, is liable for damages or losses of any type arising from use of their information. Fund information, including performance calculations and other data, is provided by J.P. Morgan Asset Management (the marketing name for the asset management businesses of JPMorgan Chase & Co and its affiliates worldwide). All data is as at the document date unless indicated otherwise.
*Additional information regarding Equity-Linked Note (ELN) investments.*
Investments in Equity-Linked Notes (ELNs) are subject to liquidity risk, which may make ELNs difficult to sell and value. Lack of liquidity may also cause the value of the ELN to decline. Since ELNs are in note form, they are subject to certain debt securities risks, such as credit or counterparty risk.
Holdings are subject to change. Should the prices of the underlying instruments move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund's entire principal investment. The price of equity securities may fluctuate rapidly or unpredictably due to factors affecting individual companies, as well as changes in economic or political conditions. These price movements may result in loss of your investment.
Security names are structured with the reference asset's ticker. SPX is in reference to the S&P 500 Index. NDX is in reference to the Nasdaq 100 Index. Estimated Equivalent Unit Delta is an estimate of the option's sensitivity to movement in the reference asset. Estimated Equivalent Unit Delta is only an estimate and for informational purposes. Estimated Equivalent Unit Gamma is an estimate of the sensitivity of the security's delta to movement in the reference asset. Estimated Equivalent Unit Gamma is only an estimate and for informational purposes. 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 Investment Management Inc. The Fund has not been passed on by the Corporations as to its legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.
For more information regarding the Estimated Equivalent Unit Delta and Estimated Equivalent Unit Gamma, including information on additional reference pricing points email jpmorgan.funds.au@jpmorgan.com or call 1800 576 468.
The S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market.
For further information please email us at jpmorgan.funds.au@jpmorgan.com, telephone 1800 576 468 or visit our website https://am.jpmorgan.com/au/en/asset-management/adv/
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15 years with J.P. Morgan / 37 years in the Industry
Hamilton Reiner, Managing Director, is a portfolio manager and head of U.S. Equity Derivatives at J.P. Morgan Asset Management. He has been managing U.S. equities and U.S. equity derivatives since 1987, at firms such as Barclays Capital, Lehman Brothers, and Deutsche Bank. He started his career at the options investing firm O'Connor and Associates, where he developed his passion for derivatives investing. Hamilton obtained a B.S.E. in Finance from the Wharton School of the University of Pennsylvania.
34 years with J.P. Morgan / 34 years in the Industry
Ralph Zingone, Managing Director, is a portfolio manager on the U.S. Disciplined Equity Team. An employee since 1991, Ralph is responsible for the Research Enhanced Index (REI) strategies. Prior to this role, he was a research analyst following the aerospace, environmental, and diversified manufacturing sectors.
Upon joining the firm, he was a quantitative equity analyst and later served as a U.S. Equity portfolio manager in London and New York. Ralph received his B.A. in mathematics and economics from the College of the Holy Cross and his M.B.A. in finance from New York University. He is a CFA charterholder.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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