J.P. Morgan Asset Management Launches First ETF: JPMorgan Diversified Return Global Equity ETF (JPGE)

NEW YORK, June 17, 2014 /PRNewswire/ -- J.P. Morgan Asset Management has announced that its first ETF, JPMorgan Diversified Return Global Equity (JPGE), officially launched for trading today.  The fund represents the next generation of strategic beta ETFs, seeking to provide global equity returns from four distinct return factors and reduced volatility by diversifying risks across regions and sectors.  It is designed to be a core global equity allocation.

JPMorgan Diversified Return Global Equity is a strategic beta, developed market equity ETF that tracks an index co-developed with FTSE Group – the FTSE Developed Diversified Factor Index.

The fund is designed to provide market participation with lower volatility, and starts with the premise that traditional market-cap weighted and single-factor indices expose investors to excessive risk concentrations and a systematic bias toward overvalued securities.  Therefore, the fund seeks to reallocate risk by weighting stocks according to four factors:  value, size, momentum and low volatility.  Research has shown that these factors, when combined, may offer better risk-adjusted returns. 

The fund is managed by an experienced J.P. Morgan team, with 18-year veteran Beltran Lastra as the lead portfolio manager.  Lastra's team currently manages $12 billion in AUM globally (as of April 30, 2014).

"We believe that J.P. Morgan has unique investment insights and global capabilities that will be attractive to ETF investors, and this product is an important first step in delivering those capabilities," said Robert Deutsch, head of the ETF business for J.P. Morgan Asset Management.  "J.P. Morgan has grown to one of the largest global mutual fund managers and our ETF offering will be a natural extension our product line-up."

"We believe that the custom index co-developed with FTSE sets this fund apart and reflects a next-generation-style ETF that will be attractive to U.S. investors," Deutsch said. 

"We are delighted that J.P. Morgan has chosen FTSE as the index provider for launching their new ETF business in the United States," said Jonathan Horton, president of FTSE North America. "Electing to work with FTSE to co-develop the methodology behind this ground-breaking multi-factor index series is a great example of combining J.P. Morgan's research and investment process know-how with our index expertise creating customized solutions in partnership with clients."

J.P. Morgan and FTSE executives will be available for phone interviews from the NYSE beginning at 10:00 a.m.

About J.P. Morgan Funds

J.P. Morgan Funds is the mutual fund arm of J.P. Morgan Asset Management.  It is the 8^th largest long-term manager in the U.S., with over $231 billion in long-term assets under management across a broad range of investment strategies in fixed income, equity, multi-asset, alternatives and absolute return.  The fund complex is #1 in long-term flows in the U.S., with 11.1 billion in flows YTD (Strategic Insights, as of April 30, 2014). 

J.P. Morgan Asset Management, with assets under management of $1.6 trillion (as of March 31, 2014), 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), the parent company of J.P. Morgan Asset Management, is a leading global financial services firm with assets of approximately $2.4 trillion (as of March 31, 2014) and operations in more than 60 countries.  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 the fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing. (Call 1-844-4JPM-ETF or visit jpmorganetfs.com to obtain a prospectus)

Investing involves risk, including possible loss of principal.  Shares are bought and sold market price, and are not individually redeemed from the fund.  Brokerage commissions will reduce returns. 

International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.

There is no guarantee the funds will meet their investment objective. 

Diversification may not protect against market loss. 

J.P. Morgan Exchange-Traded Funds are distributed by SEI Investments Distribution Co, which is not affiliated with JPMorgan Chase & Co. or any of its affiliates.

J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, JPMorgan Chase Bank N.A., J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated, J.P. Morgan Alternative Asset Management, Inc., and J.P. Morgan Asset Management (Canada), Inc.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

SOURCE J.P. Morgan Asset Management