NEW YORK, Sept. 15, 2016 /PRNewswire/ -- J.P. Morgan Asset Management announced that the JPMorgan Disciplined High Yield (JPHY) actively-managed ETF officially launched today for trading.
With interest rates at historically low levels high yield investments offer increased income potential with lower rate sensitivity and reduced correlations to U.S. Treasuries. However, the high yield universe includes segments where risk has not been rewarded with commensurate return. JPHY provides high yield exposure by systematically excluding securities that exhibit what may be considered unattractive risk-reward profiles. The result is a low-cost solution seeking higher risk-adjusted returns and lower credit risk relative to existing passive options.
"Fixed income is an important component of an investor's diversification strategy and JPHY makes the high yield segment of the market more accessible, in a cost-effective manner," said Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management. "Additionally, corporate high yield bonds tend to outperform during periods of rising rates and economic growth, which has been a concern for our clients given the challenging market conditions."
The fund is run by a seasoned and well-resourced high yield investment team with over $35bn in AUM. Each of the senior managers has more than 20 years of experience navigating multiple market cycles.
With the launch of JPHY, J.P. Morgan Asset Management expands its ETF suite to 10 products.
About J.P. Morgan Funds
J.P. Morgan Funds is the mutual fund arm of J.P. Morgan Asset Management. It is the 7th largest long-term manager in the U.S., with over $263 billion in long-term assets under management across a broad range of investment strategies in fixed income, equity, multi-asset, alternatives and absolute return.
J.P. Morgan Asset Management, with assets under management of $1.7 trillion (as of December 31, 2015), 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 December 31, 2015) 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 summary and full prospectuses contain this and other information about the 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. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. ETF shares are bought and sold throughout the day on an 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. For all products, brokerage commissions will reduce returns. Investments in bonds and other debt securities will change in value based on changes in interest rates. If rates rise, the value of these investments generally drops.
International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and decreased trading volume.
The Fund is actively managed and may not achieve its objective. Actively-managed funds typically charge more than index-linked products.
Investments in smaller companies may be riskier, more volatile and more vulnerable to economic, market and industry changes. Narrowly focused investments typically exhibit higher volatility.
The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market. They may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk. REITs are subject to the same risks as direct investments in real estate and mortgages, including default, prepayments, changes in interest rates, demand for real and rental property, and the management skill and creditworthiness of REIT issuers. The market value of a zero-coupon, pay-in-kind or deferred payment security is generally more volatile than other fixed income securities with similar maturities and credit quality that pay interest periodically. Privately placed securities generally are less liquid than publicly traded securities and the Fund may not always be able to sell such securities without experiencing delays in finding buyers or reducing the sale price for such securities. Securities rated below investment grade are considered "high-yield," "non-investment grade," "below investment-grade," or "junk bonds." They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody's Investors Service. Although they can provide higher yields than higher rated securities, they can carry greater risk. The fund is actively managed and may not achieve its objective.
Diversification does not guarantee investment returns and does not eliminate the risk of loss.
J.P. Morgan Exchange-Traded Funds are distributed by SEI Investments Distribution Co, One Freedom Valley Dr., Oaks, PA 19456, 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