J.P. Morgan Asset Management Launches JPMorgan Active China ETF (JCHI)
J.P. Morgan Asset Management has launched the JPMorgan Active China ETF (JCHI) to provide investors with a curated portfolio of Chinese equities. The fund utilizes a bottom-up stock selection approach and leverages insights from its extensive Greater China research team. JCHI is priced at 65 basis points and aims for long-term capital appreciation in China's fast-growing industries. As of March 13, 2023, J.P. Morgan Asset Management oversees over $100 billion in assets across its U.S. ETF suite, ranking among the top ten ETF issuers.
However, the fund carries significant risks due to its exposure to the Chinese market, including legal and regulatory uncertainties.
- Launch of JPMorgan Active China ETF (JCHI) for targeted exposure to Chinese equities.
- Utilizes a bottom-up investment strategy with insights from a dedicated Greater China research team.
- Current assets under management exceed $100 billion across the U.S. ETF suite.
- Investments in the fund are subject to significant legal, regulatory, and economic risks.
- Potential loss of investment value due to reliance on Variable Interest Entity (VIE) structures.
The newest active ETF offering focuses on China equities
NEW YORK, March 16, 2023 /PRNewswire/ -- J.P. Morgan Asset Management announced today the launch of its newest active ETF, the JPMorgan Active China ETF (JCHI). The Fund is designed to provide investors with access to a "best ideas" portfolio of Chinese equities and focuses on an investment process driven by bottom-up stock selection, while being mindful of macro and policy considerations.
The Fund is managed by JPMorgan Asset Management (Asia Pacific) Limited, and comprehensively leverages the Greater China research team within J.P. Morgan's Emerging Markets and Asia Pacific (EMAP) Equities team which has an extensive local research footprint that seeks to identify high-conviction ideas. It is priced at 65 basis points.
"The launch of JPMorgan Active China ETF is another example of our commitment to delivering innovative and differentiated investment solutions to clients," said Bryon Lake, Global Head of ETF Solutions at J.P. Morgan Asset Management. "There are a lot of opportunities in China that investors want to invest in with intentionality, and we are excited to offer them a strategic option to capitalize on."
Li Tan and Rebecca Jiang will serve as the Fund's portfolio managers. Utilizing its rigorous research process, the Fund will seek to identify attractively valued industry leaders, with an emphasis on companies it believes have sustainable earnings and disciplined capital management.
"The launch of JPMorgan Active China ETF marks an exciting new time for investors," explained Li Tan. "Backed by the expertise of our Greater China research team, JCHI offers investors access to long-term capital appreciation potential in some of China's fastest-growing industries."
The dedicated Greater China team currently consists of 26 investment professionals, 17 of whom are Greater China product specific research analysts, with an average 17 years of industry experience.
JCHI complements the firm's existing style pure offerings, including JPMorgan Active Growth ETF (JGRO) and JPMorgan Active Value ETF (JAVA).
The addition of JCHI brings a differentiated offering to J.P. Morgan Asset Management's full U.S. suite of ETFs, which now has over
Portfolio Managers Biographies:
Li Tan, executive director, is a portfolio manager for Greater China equities and a member of the Greater China team within EMAP Equities team, based in Hong Kong. An employee since 2011, Mr. Tan was previously a financial analyst covering Asian banks within the EMAP Equities team in London. Prior to that, he held strategy roles within the Investment Banking and Commercial Banking divisions of JPMorgan.
Rebecca Jiang, managing director, is a portfolio manager for Greater China equities and a member of the Greater China Team within the EMAP Equities Team. Based in Hong Kong, she joined the firm in 2017 after six years at Fidelity International where she was a senior equity research analyst.
Because the Fund invests at least
Risk Summary
Investments in Mainland China, Hong Kong, Taiwan and Macau are subject to significant legal, regulatory, monetary and economic risks, as well as the potential for regional and global conflicts, including actions that are contrary to the interests of the U.S. As a result, the Fund may not be suitable for all investors and should be used only by investors who understand the risks of investing in securities and instruments economically tied to China. Investors in the Fund monitor their investment. An investor in the Fund could potentially lose the full value of their investment.
Chinese operating companies sometimes rely on Variable Interest Entity (VIE) structures to raise capital from non-Chinese investors. Even though such arrangements are not formally recognized under Chinese law. VIE structures are used due to Mainland Chinese government prohibitions on foreign ownership of companies in certain industries and it is not clear that the contracts are enforceable or that the structures will otherwise work as intended. There may also be conflicts of interest between the legal owners of the Mainland Chinese company and non-Chinese investors (such as the Fund). It is unclear whether the Mainland Chain government will withdraw its implicit acceptance of the VIE structure, or whether any new laws, rules or regulations relating to VIE structures will be adopted or, if adopted, what impact they would have on the interests of non-Chinese investors. The market value of the Fund's associated portfolio holdings would likely fall, causing substantial investment losses.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of USD 2.45 trillion (as of December 31, 2022), 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.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.
Investing involves risk, including possible loss of principal. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Shares are bought and sold throughout the day on exchange at market price (not NAV) through a brokerage account, and are not individually redeemed from the fund. Shares may only be redeemed directly from a fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns. 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.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had
J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA. More information is available at https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/etfs.
Investors should carefully consider the investment objectives and risks as well as charges and expenses of the funds before investing. The summary and full prospectuses contain this and other information about the funds and should be read carefully before investing. To obtain a prospectus call 1-800-480-4111.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Related Links: http://www.jpmorganchase.com
1 Data according to Bloomberg as of March 14, 2023.
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SOURCE J.P. Morgan Asset Management
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