JPMorgan ETFs (IE) ICAV - AC APAC ex-Japan REI Eq. Active · LSE:JRAE
JPMorgan ETFs (IE) ICAV - AC APAC ex-Japan REI Eq. Active — JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF — Investor Presentation (May 2023)
48 slides from JPMorgan ETFs (IE) ICAV - AC APAC ex-Japan REI Eq. Active's investor presentation, May 2023
Slide 1: Active ESG ETF building blocks to enhance your core
Active ESG ETF building blocks to May 2023 enhance your core JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF*^ Past performance is not a reliable indicator of current and future results. This is a marketing communication. Please refer to the pro
Slide 2: ETFs by J.P. Morgan Asset Management
ETFs by J.P. Morgan Asset Management 2 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 3: Active ETFs can add Alpha to expected long-term returns
Active ETFs can add Alpha to expected long-term returns 2023 Long-Term Capital Market Assumptions expected returns in coming 10-15 years China 9.7 0.75 Eurozone large cap 8.4 0.75 Japan 8.3 0.75 Emerging markets 8 0.75 Asia ex-Japan 7.9 0.75 Europe Large Cap 7.7 0.75 Global equities 6.3 0.75 LTCMA r
Slide 4: Our forecasts have stood the test of time
So why should investors care? Our forecasts have stood the test of time In 2010s: average forecast-realized gap: 80bp (Full history: 70% of forecasts within 0.5 standard deviations of realized) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 5: Research Enhanced Index ETFs: an active extension for your core
Research Enhanced Index ETFs: an active extension for your core 5 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 6: J.P. Morgan Asset Management's REI ESG strategy in an ETF
J.P. Morgan Asset Management’s REI ESG strategy in an ETF Research Enhanced Environmental, Social Exchange Traded Index (REI) & Governance (ESG) Funds (ETF) ● Research driven investment ● Consideration of ESG factors in ● Active ETFs provide flexibility in philosophy sharpened over 30 investment dec
Slide 7: Combining the best qualities of active and passive
Research Enhanced Index aims to combine the best qualities of active and passive A core building block and a relatively attractive alternative to passive that seeks positive Alpha at low Tracking Error Active Manager 2% Neutralize Active stock macro/style selection biases Excess Return Return 1% ESG
Slide 8: Our Research Enhanced Index (ESG) ETF range
Our Research Enhanced Index (ESG) ETF range: Combining active investing with benefits of ETF vehicle in all major markets 1.25bn USD AuM 1bn USD AuM JREG* JREM* Global equities Emerging Markets equities 2.3bn USD AuM 14mn USD AuM JREU* JREC* US equities China A equities 387mn USD AuM 66mn USD AuM JR
Slide 9: REI modular approach allows for regional implementations
Research Enhanced Index modular approach allows for regional implementations J.P. Morgan Asset Managements Research Enhanced Index Strategies US GLOBAL & EUROPE EMERGING Research Enhanced Index EAFE Research Enhanced Index MARKETS Equity Strategy Equity Strategy Research Enhanced Index Research Enha
Slide 10: Active Equity ETFs by J.P. Morgan Asset Management
Active Equity ETFs by J.P. Morgan Asset Management JREU* JREG* JREE* JREM* J.P. Morgan US Research Global Emerging Markets Global Research Enhanced Global Research Enhanced ETF Name Enhanced Index Equity (ESG) Research Enhanced Index Index Equity (ESG) UCITS ETF Index Equity (ESG) UCITS ETF UCITS ET
Slide 11: Enhance your core: Developed Markets
Enhance your core: Developed Markets JREG* JREU* JREE* JREZ* JREJ* Benchmark MSCI World S&P 500 MSCI Europe MSCI EMU MSCI Japan Alpha Target 0.75% 0.60% 0.75% 0.75% 0.75% Tracking Error 1.00-1.50% 0.50-1.50% 0.75-1.50% 0.75-1.50% 0.75-1.50% (Active Risk) AuM 1.25bn USD 2.3bn USD 387n EUR 130mn EUR 6
Slide 12: Enhance your core: Emerging Markets
Enhance your core: Emerging Markets JREM* JREC* JREA* Benchmark MSCI Emerging Markets MSCI China A MSCI AC Asia Pacific ex Japan Alpha Target 0.75% 0.75% 0.75% Tracking Error 0.75%-2.0% 1.00-2.00% 1.00-2.00% (Active Risk) AuM 1bn USD 14mn USD 26mn USD (as of 15 Feb 23) Country range +2% to benchmark
Slide 13: Why invest in active (ESG) ETFs?
Why invest in active Research Enhanced Index (ESG) ETFs? Enhanced core Alpha ESG approach Building blocks solution opportunity Diversify your passive Benefit from J.P. Rigorous ESG Full offering across core through active ETFs Morgan Asset approach including developed and emerging Management global
Slide 14: Asia's decade: Get ahead of the growth opportunity
Asia’s decade: Get ahead of the growth opportunity Source: J.P. Morgan Asset Management. Image: Shutterstock 14 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 15: Expertise
Expertise 15 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 16: Portfolio management Team: Roles and Responsibilities
Portfolio management Team: Roles and Responsibilities AC Asia Pacific ex Japan Research Enhanced Equities Strategy Lina Nassar Sonal Tanna Shumin Huang Portfolio Manager Portfolio Manager Head of Emerging Asia Experience: 11,11 Experience: 23,23 Research Exp: 31,17 Giovanni Carriere Head of Emerging
Slide 17: EMAP Equities research platform
Emerging Markets and Asia Pacific (EMAP) Equities research platform Mark Ferguson Shumin Huang Giovanni Carriere Global Head of Research Head of Emerging Asia Research Head of Emerging Markets Research Exp: 23,23 Exp: 31,17 Exp: 25,9 Financials Chris Birney Ravi Tanna Pawel Dziedzic Exp: 22,13 Exp:
Slide 18: Investment Process
Investment Process “Exploit stock specific insights with index like characteristics and robust risk management” Information Advantage Valuation Model Portfolio Construction ● In-depth fundamental research at a ● Focus on long term fundamentals ● Experienced Portfolio Management company level Team dr
Slide 19: In-depth fundamental research with a focus on the long term
In-depth fundamental research with a focus on the long term Separate outputs inform our understanding and valuation of a business Strategic Classification EMAP Checklist Five Year Expected Return (Premium/Quality/Trading/Structurally challenged) Classification Average red flags Economics Earnings gr
Slide 20: Our proprietary research is focused on the long-term
Our proprietary research is focused on the long-term Number of Sell-Side Analysts Number of Sell-Side Analysts Making 1-yr Growth Forecasts Making 5-yr Growth Forecasts 45 50 41 40 45 40 35 33 29 35 30 25 30 25 25 20 20 15 15 10 10 7 5 5 0.0 1.0 1.0 0.0 0.0 0 0 Average EM Kweichow Contemporary Fosha
Slide 21: Our expected return rankings have added value
Our expected return rankings have added value January 2012 – May 2022 Quintile (Q) Performance of Five Year Expected Return signal vs. Benchmark 5.0% 4.6% 4.0% On average, undervalued stocks have outperformed… …and expensive stocks have underperformed. 3.0% 2.4% 2.0% 1.0% 0.0% -0.3% -1.0% -2.0% -1.9
Slide 22: Our active ESG approach
Our active Research Enhanced Index ESG approach Exclusions* ESG Integration Engagement Controversial sectors like fossil fuels or We consider ESG factors throughout Corporate engagement by analysts, weapons are excluded our investment process, including portfolio managers and the Investment research
Slide 23: ESG Promote Funds (EU SFDR Article 8)
J.P. Morgan Asset Management ESG Promote Funds (EU SFDR Article 8) Inclusionary ESG requirements • A minimum of 10% of assets must be ‘sustainable investments’ as defined by EU SFDR • A minimum of 51% of assets must have ‘good E and/or S characteristics’ and ‘promote good governance’ • 100% of asset
Slide 24: Integrating ESG into our investment process
Integrating ESG into our investment process Systematic consideration of financially material ESG factors* Systematically capturing our A Fundamental ESG Score informed by our proprietary ESG insights research and company Environment Fundamental engagements. Our analysts Insights complete a 40 questi
Slide 25: Firm-wide investment stewardship priorities
J.P. Morgan Asset Management’s firm-wide investment stewardship priorities We take a collaborative investor-led, expert driven approach. Our investment professionals and stewardship specialists work together closely to strategically engage companies and vote proxies based on our six priorities. The
Slide 26: Portfolio
Portfolio 26 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 27: Sector and market positions
JREA* Sector and market positions JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF as of 30 April 2023 Sector positions Relative weight (%) Portfolio 24.1 5.6 4.3 14.2 6.2 4.6 8.9 18.6 2.3 3.7 4.6 8.1 11.6 5.5 1.8 weight (%) Market positions Rela
Slide 28: Portfolio positions
JREA* Portfolio positions JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF as of 30 April 2023 Top 10 holdings Portfolio weight (%) Top 5 overweights Portfolio weight (%) Relative weight (%) Taiwan Semiconductor Manufacturing 6.15 Samsung Electro
Slide 29: Portfolio characteristics
JREA* Portfolio characteristics JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF as of 30 April 2023 Portfolio Benchmark Style tilts relative to benchmark 12-Month Forward Price to Earnings (x) 13.4 13.3 Price to book (x) 1.8 1.6 Dividend yield (
Slide 30: Results
Results 30 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 31: Performance
JREA* Performance JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Market value Index Equity (ESG) UCITS ETF as of 30 April 2023 JPM AC Asia Pacific ex Japan Research USD 25m Enhanced Equity ETF Annualised performance (%) Three Six One Since Trailing returns YTD months month
Slide 32: Composite performance
Composite performance JPM GEM Research Enhanced Equities Strategy As of 30 April 2023 Annualised performance (%) Three Six One Three Five Since Trailing returns YTD months months year years years Inception Global Emerging Markets Research Enhanced -5.20 17.37 3.06 -6.58 4.74 -0.26 4.25 Index Equity
Slide 33: EMAP (ESG) ETF range: Performance overview
EMAP Research Enhanced Index (ESG) ETF range: Performance overview 70 5 JREM* 60 ETF % change JREC* Index % change 0 50 +0.47% -5 40 30 +0.53% -10 Excess Return Excess Return 20 -15 10 1.53 0 2.46 -20 -25 Tracking Error -10 Tracking Error ETF % change -20 -30 Index % change 0.31 -30 0.22 -35 Apr-22
Slide 34: Performance attribution - 3 months
JREA* Performance attribution - 3 months JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF as of 30 April 2023 Sector (%) Stock: -1.08 | Sector: 0.14 Market (%) Stock: -1.06 | Market: 0.11 Source: J.P. Morgan Asset Management. (o) = overweight, (u
Slide 35: Stock attribution - 3 months
JREA* Stock attribution - 3 months JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF as of 30 April 2023 Relative Stock Impact Relative Stock Impact Top contributors weight (%)1 Top detractors weight (%)1 return (%) (%) return (%) (%) Li Ning* -0.
Slide 36: Appendix
Appendix 36 FOR INSTITUTIONAL / WHOLESALE / PROFESSIONAL CLIENTS AND QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
Slide 37: Performance JREM
Performance JREM JPMorgan ETFs (Ireland) ICAV - Global Emerging Markets Research Market value Enhanced Index Equity (ESG) UCITS ETF* as of 30 April 2023 JPM GEM Research Enhanced Equity ETF USD 1,097m Annualised performance (%) Three Six One Three Since Trailing returns YTD months months year years
Slide 38: Performance JREC
JREC* Performance JPMorgan ETFs (Ireland) ICAV - China A Research Enhanced Index Equity Market value (ESG) UCITS ETF as of 30 April 2023 JPM China A Research Enhanced Equity ETF USD 13m Annualised performance (%) Three Six One Since Trailing returns YTD months months year Inception JPMorgan ETFs (Ir
Slide 39: Performance JREJ
JREJ* Performance JPMorgan ETFs (Ireland) ICAV - Japan Research Enhanced Index Equity Market value (ESG) UCITS ETF as of 30 April 2023 Japan Research Enhanced Index Equity (ESG) USD 59m UCITS ETF Annualised performance (%) Three Six One Since Trailing returns YTD months months year Inception JPMorga
Slide 40: Benefits of an ESG framework within our Research Driven Process
Benefits of an ESG framework within our Research Driven Process Our approach to ESG is centred around engagement to develop a deep understanding of businesses and to drive change in pursuit of better outcomes ● Forensic analysis of all aspects of a company's financials Research ● Intrinsic understan
Slide 41: An innovative product range: our UCITS ETF Range
An innovative product range: our UCITS ETF Range currently has 32 ETFs across asset classes and 70+ share classes Equities Fixed Income Global Equity REI (ESG) <JREG, JRGD, JRGE, JGPE>* USD Ultra-Short <JPST, JPSA>* Europe Equity REI (ESG) <JREE, JRED>* GBP Ultra-Short <JGST, JGSA>* Eurozone Equity
Slide 42: GLOBAL (ESG) range: Share class overview
Research Enhanced Index (ESG) range: Share class overview Listing Exchange Bloomberg Benchmark Equities Exchange Sedol Reuters Ric ISIN Currency Ticker Ticker Ticker Research Enhanced Index LSE USD BYXH6T6 JREG JREG LN JREG.L LSE GBX BF2F5Z7 JGRE JGRE LN JGRE.L JREG JPM Global Research Enhanced Inde
Slide 43: EUROZONE (ESG) range: Share class overview
Research Enhanced Index (ESG) range: Share class overview Listing Exchange Equities Exchange Sedol Bloomberg Ticker Reuters Ric ISIN Benchmark Ticker Currency Ticker Research Enhanced Index LSE EUR BFZ4CL6 JREE JREE LN JREE.L JREE LSE GBX BF2F609 JERE JERE LN JERE.L EUROPE JPM Europe Research Enhanc
Slide 44: ASIA-PACIFIC EX (ESG) range: Share class overview
Research Enhanced Index (ESG) range: Share class overview Listing Exchange Equities Exchange Sedol Bloomberg Ticker Reuters Ric ISIN Benchmark Ticker Currency Ticker Research Enhanced Index LSE USD BYXH6W9 JREM JREM LN JREM.L EMERING MARKETS JREM LSE GBX BF2F621 JMRE JMRE LN JMRE.L JPM Global Emergi
Slide 45: GIPS Report
GIPS Report JPM GEM Research Enhanced Equities Strategy Composite Benchmark Number of Market value Percentage Benchmark 3-yr annual 3-yr annual portfolios Total firm Global Emerging Markets Research Year Gross return Net return Dispersion at end of of firm Composite name return standard standard (*t
Slide 46: JPMorgan Asset Management (China)
JPMorgan Asset Management (China)* Du Meng CIO, Equities, PM Experience: 21/15 Balanced, Team Head: Ni Quansheng Segregated Ni Zhu Wang Quansheng Xiaolong Lijun Ye Min Li, Wenjie Exp.: 11/3 Exp: 15/11 Exp.: 16/8 Exp.: 15/11 Exp.: 12/8 Value Growth, Team Head: Li, Bo Yang Li Bo Chen Siyu Li Dehui Jin
Slide 47: Investment objective and risk profile
Investment objective and risk profile JPMorgan ETFs (Ireland) ICAV - AC Asia Pacific ex Japan Research Enhanced Index Equity (ESG) UCITS ETF* Risk profile • The value of your investment may fall as well as rise and you may get back less than you originally invested. • The value of equity securities
Slide 48: Important information
Important information FOR PROFESSIONAL CLIENTS/QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION *FOR BELGIUM ONLY Please note the acc share class of the ETF marked with an asterisk (*) in this page are not registered in Belgium and can only be accessible for professional clients. Please