JP Morgan Asset Management has launched a European Equity Premium Income Active UCITS ETF (JEPE) to expand its premium income strategies to European equities.
The ETF is designed to provide a consistent monthly income with lower volatility, using dividends and premiums from selling index call options. This approach will aim to adapt to market conditions while maintaining a diversified European equity portfolio.
It will be managed by Hamilton Reiner, Piera Elisa Grassi, Nicholas Farserotu, Matt Bensen, Judy Jansen and Sebastian Wiseman.
JEPE will target an 8-10% yield per month, with a total expense ratio (TER) of 35 basis points.
The new ETF will be available on all major European stock exchanges, including the UK, Germany, Italy and Sweden.
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Travis Spence, global head of ETFs at JP Morgan Asset Management, said: “Having now managed these strategies globally in active ETFs since 2020, investors have come to appreciate the two main outcomes: a consistent income stream and lower volatility access to the equity markets.
“JEPE now provides the ability to achieve these outcomes in European equities for the first time,” he concluded.
The launch builds on the firm’s existing $4.6bn Equity Premium Income range.
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