J.P. Morgan launches active Aussie equity ETF

The asset manager has listed the J.P. Morgan Australia Equity Active ETF (ASX: JPOZ) on the ASX, targeting to provide long-term return from local companies.

The ETF invests primarily in a portfolio with at least 67% of Australian securities, but a small proportion of investments may be in cash and cash equivalent. At any given period, it provides exposure to typically over 150 stocks.

As at August 13, JPOZ has 162 holdings within its portfolio, including major household names across different industries like BHP, Macquarie, Commonwealth Bank, CSL, Rio Tinto and Telstra.

It charges a management fee of 0.25% per annum and aims to outperform the S&P/ASX 300 Accumulation Index Gross in AUD. It is distributed every quarter.

Perpetual Trust Services is serving as the responsible entity for the ETF and is managed by portfolio managers Joe Staines, Victor Li, and Aijaz Hussain, collectively bringing over 40 years' experience in the industry.

It is the tenth ETF strategy and fifteenth listed active ETF in the Australian market - due to hedged share classes for various strategies, the firm said.

The launch also brings J.P. Morgan Asset Management's assets under management to over $566 billion (US$400bn) in active ETFs.

"This now means we have ETFs that span US and international equities, global fixed income and now Australian equities," J.P. Morgan head of wholesale for Australia and New Zealand Mark Carlile said.

"JPOZ provides investors with a diversified portfolio of Australian equities using a systematic multi-factor approach. What this means is that it combines value, quality and momentum factors in a disciplined process aiming to outperform the S&P/ASX300.

"The strategy is managed by a dedicated quantitative team using a repeatable investment framework through decades of systematic investing innovation."