Global Equity Multi-Factor UCITS ETF Unhedged USD · LSE:JPGL
Global Equity Multi-Factor UCITS ETF Unhedged USD — JPMorgan ETFs (Ireland) ICAV Global Equity Multi-Factor UCITS ETF — Investor Presentation (April 2023)
31 slides from Global Equity Multi-Factor UCITS ETF Unhedged USD's investor presentation, April 2023
Slide 1: Global Equity Multi-Factor UCITS ETF (JPGL)
April 2023 Quantitative Solutions JPMorgan ETFs (Ireland) ICAV Global Equity Multi-Factor UCITS ETF (JPGL*) This is a marketing communication. Please refer to the prospectus and to the KID or KIID before making any final investment decisions. FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT
Slide 2: Contents
Contents 01 Quantitative Solutions Platform 02 JPMorgan Multi-Factor Equity UCITS ETF(JPGL*) (a) Investment Philosophy (b) Fund Overview (c) Performance Appendix 1 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 3: Quantitative Solutions Platform
01 Quantitative Solutions Platform 2 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 4: AMS Quantitative Solutions: Access to factor and quantitative solutions
AMS Quantitative Solutions: Access to factor and quantitative solutions THEMATICS STRATEGIC BETA ALTERNATIVE BETA Long-only Long-only Long-short Equities Equities Risk Premia (Style investing & Hedge Fund based) Utilizes artificial intelligence to build portfolios Utilizes different weighting framew
Slide 5: AMS Quantitative Solutions: Investment team
AMS Quantitative Solutions: Investment team George Gatch, CEO, J.P. Morgan Asset Management Jed Laskowitz, CIO and Global Head of Asset Management Solutions (AMS) Related Functions GFICC Quantitative Solutions AMS Quantitative Solutions AMS Core Beta Solutions Eric Isenberg, Head of Quantitative Sol
Slide 6: JPGL: Global Equity Multi-Factor UCITS ETF
02 JPGL: JPMorgan ETFs (Ireland) ICAV Global Equity Multi-Factor UCITS ETF (JPGL*) 5 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 7: (a) Investment Philosophy
(a) Investment Philosophy 6 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 8: Challenges of investing in traditional market cap-weighted indices
Challenges exist for investing in traditional market capitalisation-weighted indices Risk challenge Return challenge Cap-weighted indices often Cap-weighted indices often own have highly concentrated sector securities that have unattractive and stock-level risk characteristics or factor exposure 7 F
Slide 9: Risk: Market cap indices may be less diversified than they appear
Risk: Market cap indices may be less diversified than they appear COMPANY SPECIFIC RISK* SECTOR RISK* CONCENTRATION CONCENTRATION Russell 1000 (market cap-weighted index) Russell 1000 (market cap-weighted index) January 1999 – December 2001 January 2015 – December 2017 (Technology Bubble) (Recent pe
Slide 10: Return: Factors can enhance risk and return profile of a portfolio
Return: Factors can enhance risk and return profile of a portfolio RETURNS OF TOP 40% OF STOCKS BY ATTRIBUTE 1963-2017 More Risk 14% Positively Less Trending 13% Expensive Combined Top 40% of Stocks Less Return Return 12% Return Stocks that are cheaper, profitable and trending 11% High positively te
Slide 11: Unique two step process to a better index
Unique two step process to a better index Balance risk Enhance return Seeking To Manage Risk Through Diversification Enhance Returns Through Factors SECTOR WEIGHTS: VALUE QUALITY MOMENTUM Diversification does not guarantee positive returns and does not eliminate the risk of loss. Risk management doe
Slide 12: (b) Fund Overview
(b) Fund Overview 11 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 13: J.P. Morgan Global Equity Multi-Factor UCITS ETF (JPGL)
J.P. Morgan – Global Equity Multi-Factor UCITS ETF (JPGL*) Seeking Multi-Factor exposure to global developed equity markets, with a focus on both risk and return Expertise: Highly experienced investment team focused on quantitative research and portfolio management Portfolio: Combines risk-weighted
Slide 14: JPGL – Thoughtful process to portfolio construction
JPGL* – Thoughtful process to portfolio construction Risk Return Portfolio additional Risk-weight Factor screen detail & parameters ● Weight 11 sectors by the inverse of ● Screen universe on three factors ● Starting Universe: trailing 3 year weekly volatility to Value, Quality and Momentum FTSE Deve
Slide 15: Multi-factor security selection in practice
Multi-factor security selection in practice Multi-factor Issuer Selection Company A. 01 Value Score 0.26 Low-ranked Quality Score 0.99 company Within sectors, rank each security on a series of (Not held in portfolio) metrics related to Value, Quality, and Momentum Momentum Score 0.99 ● Scale: 0.0 (b
Slide 16: Portfolio characteristics
Portfolio characteristics Illustration of Multi-Factor exposure to global developed equity markets, with a focus on both risk and return Sector exposure Portfolio characteristics JPGL FTSE Developed Index FTSE CHARACTERISTIC JPGL DEVELOPED Telecommunications Number of Holdings 516 2,150 Technology %
Slide 17: (c) Performance
(c) Performance 16 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 18: Multi-factor global developed equity – Index performance
Multi-factor global developed equity – Index performance Index performance Strategy characteristics 800 Region: Global Developed Market Equities 700 JP Morgan Diversified Factor Global Developed Strategic Beta Benchmark: (Region Aware) Equity Index 600 Market Cap Benchmark: FTSE Developed Index 500
Slide 19: Performance: JPGL
Performance: JPGL* JPMorgan ETFs (Ireland) ICAV – Global Equity Multi-Factor UCITS ETF Market value USD 108.1m One Three One Three Five Since As of 30 April 2023 YTD Month months year years years inception JPM Global Equity Multi-Factor UCITS ETF – USD (acc) 1.73% -0.18% 5.19% 0.75% 13.72% - 7.35% J
Slide 20: Appendix
APPENDIX 19 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 21: What is a factor and why does it work?
What is a factor and why does it work? What is a factor? Economic rationale Most simply, factors are drivers of both risk and return of any security Risk Compensation for bearing risk associated with a particular factor (i.e. Crash risk, Tail correlation) They can be used to explain diversification
Slide 22: Value, quality, and momentum are backed by decades of academic research
Value, quality, and momentum are backed by decades of academic research Stocks that appear undervalued on the basis of Undervalued stocks tend to outperform fundamental valuation measures tend to 14% β outperform over time Value ● Fama and French 1993, Lakonishok, Shleifer, and Vishny 1994, Zhang 20
Slide 23: Factors work better when combined
Factors work better when combined Multi-factor approaches can benefit from diversification Value Quality Momentum Higher quality stocks, as defined by Stocks that are rising in price tend to Stocks that are cheaper relative to peers profitability, financial risk, and earnings continue to rise in pri
Slide 24: Our approach: A methodology focused on risk and return
Our approach: A methodology focused on risk and return 01 02 03 Divide the universe into equal Within each region and sector, rank each security on a series of Populate with the top rated securities risk-weighted sector buckets metrics on a scale from 0.0 (best) to 1.0 (worst) at equal notional weig
Slide 25: Performance environments: Multi-Factor Equity ETF Suite
Performance environments: Multi-Factor Equity ETF Suite Environments in which the portfolio Environments in which the portfolio tends to perform well tends to struggle Economic downturns and higher volatility environments Periods when market concentration is rewarded When cheaper, trending, lower vo
Slide 26: J.P. Morgan Spectrum: Portfolio & risk management
J.P. Morgan Spectrum™: Portfolio & risk management Modeling, analyzing, and sizing decisions through multiple lenses before implementing portfolio decisions Quantitative framework for portfolio diagnostics and asset allocation optimization Integrated analytics to help evaluate the impact of the late
Slide 27: Investment objective and main risks
Investment objective and main risks JPMorgan ETFs (Ireland) ICAV - Global Equity Multi-Factor UCITS ETF (JPGL) * KEY RISKS INVESTMENT OBJECTIVE • The value of your investment may fall as well as rise and you may get back less than you originally invested. The Sub-Fund seeks to provide returns that c
Slide 28: Important information - JPMorgan Multi-Factor Equity UCITS ETF
Important information - JPMorgan Multi-Factor Equity UCITS ETF(JPGL*) * FOR BELGIUM ONLY *Please note the acc share class of the ETF marked with an asterisk (*) in this material are not registered in Belgium and can only be accessible for professional clients. Please contact your J.P. Morgan Asset M
Slide 29: Important information
Important information FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment
Slide 30: Important Notes
Important Notes Confidential: Not for retail use or further distribution This document is meant for informational purposes only and is intended solely for the person to whom it is delivered. It is confidential and may not be reproduced or distributed, in whole or in part, to any third parties and in
Slide 31: Important Notes (Continued)
Important Notes (Continued) Brunei: This material is provided in response to your request. It relates to a private collective investment scheme which is not subject to any form of domestic regulations by the Autoriti Monetari Brunei Darussalam (“Authority”). This material or prospectus is intended f