J.P. Morgan Asset Management Launches Two Hedged Equity Funds: JHQDX and JHQTX

Rhea-AI Summary

J.P. Morgan Asset Management has launched two new Hedged Equity funds: JPMorgan Hedged Equity 2 (I-Shares: JHQDX) and JPMorgan Hedged Equity 3 (I-Shares: JHQTX), aimed at providing S&P 500 equity exposure while mitigating market risks. The funds will implement a disciplined options overlay strategy and reset their hedged periods every three months. With $641 billion managed across various equity strategies, J.P. Morgan's experienced team, led by Hamilton Reiner, aims to meet the demand for risk-managed investment solutions.

Positive

• Launch of two new Hedged Equity funds, JHQDX and JHQTX.
• Funds aim to provide exposure to the S&P 500 while hedging market risk.
• Experienced management team with over 62 years of combined experience.
• Strong demand expected for capital appreciation-focused managed solutions.

Negative

• None.

NEW YORK, Feb. 26, 2021 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of two Hedged Equity funds: JPMorgan Hedged Equity 2 (I-Shares: JHQDX) and JPMorgan Hedged Equity 3 (I-Shares: JHQTX) (collectively, the "funds"). Employing the scale and expertise of J.P. Morgan's Global Equities platform, both funds seek broad S&P 500 equity exposure while hedging overall market risk relative to traditional long-only equity strategies. 

Each fund's hedged strategy is implemented on staggered start dates, resetting its hedged period¹ every three months to seek a consistent investment experience. At the beginning of each hedged period, a disciplined options overlay strategy is implemented based on market conditions, and over the long-term, intends to reduce the fund's risk by offsetting losses resulting from market volatility.

The funds will leverage an experienced equity management team comprising more than 62 years of combined experience and headed by 33-year industry veteran Hamilton Reiner as the lead portfolio manager, based in New York.

"Regardless of the environment, equity investors demand a flexible experience when it comes to managing risk," said Hamilton Reiner, Portfolio Manager and Head of U.S. Equity Derivatives at J.P. Morgan Asset Management. "We expect strong demand for both JHQDX and JHQTX as investors look for managed solutions that are designed for capital appreciation, and employing the hedged experience allows clients to stay invested no matter the state of the market."

J.P. Morgan's Global Equities platform manages $641 billion across US Equity ($354bn), International Equity ($112bn) and EMEA ($174bn) investment strategies². With collaboration among 370+ equity investment professionals across eight locations, J.P. Morgan has been managing equity strategies for more than 30 years.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of USD 2.3 trillion (as of 31 December 2020), 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.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund before investing. The summary and full prospectuses contain this and other information about the mutual fund and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co., and its affiliates worldwide.

J.P. Morgan Funds 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/adv/funds/.

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NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

¹ Reset date for each three-month hedged period:

• JPMorgan Hedged Equity 2 (JHQDX): Last business day of January, April, July, October
• JPMorgan Hedged Equity 3 (JHQTX): Last business day of February, May, August, November

² (As of 12/31/2020).

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SOURCE J.P. Morgan Asset Management

FAQ

What are the new funds launched by JPM?

The new funds are JPMorgan Hedged Equity 2 (I-Shares: JHQDX) and JPMorgan Hedged Equity 3 (I-Shares: JHQTX).

What is the investment strategy of these new funds?

The funds seek S&P 500 equity exposure while implementing a hedged strategy to reduce market risk.

Who is managing the new hedged equity funds?

The funds are managed by an experienced team led by Hamilton Reiner.

When do the hedged periods reset for JHQDX and JHQTX?

JHQDX resets its hedged period on the last business day of January, April, July, and October, while JHQTX resets on the last business day of February, May, August, and November.

How much does J.P. Morgan manage across various equity strategies?

J.P. Morgan manages $641 billion across US, International, and EMEA equity strategies.