JP Morgan Asset Management (JPMAM) has added a Europe strategy to its range of actively managed exchange-traded funds (ETF) using call options to generate higher income.
The JPMorgan Europe Equity Premium Income Active UCITS ETF (JEPE) is managed by Hamilton Reiner, the firm’s chief investment officer for US core equity and head of US derivatives. It targets a yield of 8%-10% with less volatility than the MSCI Europe index.
JEPE has listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange with a total expense ratio (TER) of 0.35%.
Our view
David Batchelor, senior analyst at QuotedData, said: “Another launch from the current king (in market share terms at least) of European active ETFs, JPMorgan. Covered call strategies – selling index options on an underlying equity portfolio to generate income from the premiums and reduce volatility – are becoming well established in the sector, and the JPMorgan Equity Premium Income Active range has played a big part in this. However, the strategy was not available for investment in European equities until now – JPMorgan has identified a gap in the market and moved to fill it, which I guess is what one would expect from a market leader.”
