NEW YORK, Jan. 22, 2017 /PRNewswire/ -- J.P. Morgan Asset
Management has announced that it has signed a letter of intent to
negotiate a license for Precidian Investments LLC's patented
intellectual property relating to the offering of actively-managed,
periodically-disclosed exchange-traded funds (ETFs).
The Precidian model, subject to applicable regulatory approvals,
would allow J.P. Morgan to deliver actively managed investment
strategies in an ETF vehicle without disclosing holdings on a daily
basis. Precidian is seeking approval for use of
ActiveShares(SM) from the SEC.
"J.P. Morgan has world class active management capabilities and
we are excited to be able to deliver those capabilities to our
advisor clients in ETFs just as we do in other products," said
Bob Deutsch, Head of ETFs for J.P.
Morgan Asset Management. "Advisors want and use multiple types of
investment vehicles to suit different client portfolios, and we are
looking forward to helping meet those needs."
Precidian's CEO, Daniel McCabe,
stated "we are thrilled to work with J.P. Morgan on what we hope
will be the new standard for actively-managed,
periodically-disclosed ETFs. Innovation is a hallmark of the asset
management industry, and we are excited to continue working to
bring new active strategies to investors."
J.P. Morgan's intent to license the ActiveShares (SM)
methodology is further evidence of its ongoing commitment to ETF
innovation and delivering its best investment management thinking
in an ETF format.
J.P. Morgan Asset Management's ETF suite features eleven product
offerings with over $1 billion in
assets under management. J.P. Morgan achieved a top ten
position in flows across smart beta ETFs in 2016, ranking #8 out of
47 ETF managers. J.P. Morgan was also named one of the "Most
Trusted" ETF providers according to Cogent Reports' 2016 Advisor
Brandscape report and was awarded "Most innovative equity ETF –
performance" award by Fund Action for its JPMorgan Diversified
Return Global Equity (JPGE) product.
Precidian's patented structure seeks to combine the most
beneficial aspects and protections of traditional investment
management products with the efficiencies and flexibilities of an
ETF. The patented ETF structure seeks to provide asset managers
with the ability to generate alpha without daily disclosure of
their proprietary strategies while simultaneously creating
significant improvements in tax efficiency, manager flexibility and
lower operating costs. Investors also can enjoy significant
benefits associated with intraday access to their money through
transactions on regulated exchanges and simplified choice through a
single share class.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, the marketing name for J.P. Morgan
Investment Management, with assets under management of $1.8 trillion (as of December 31, 2016), 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
$2.5 trillion (as of September 30, 2016) 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.
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SOURCE J.P. Morgan Asset Management