JPMorgan US Equity Premium Income Active ETF · TSX:JEPI
JPMorgan US Equity Premium Income Active ETF — Investor Presentation (September 2024)
20 slides from JPMorgan US Equity Premium Income Active ETF's investor presentation, September 2024
Slide 1: JPMorgan US Equity Premium Income Active ETF (JEPI)
September 2024 JPMorgan US Equity Premium Income Active ETF (JEPI) For Advisor use only - Not for Retail use or distribution
Slide 2: Executive summary
Executive summary JPMorgan US Equity Premium Income Active ETF (JEPI) Expertise Portfolio Success Experienced portfolio managers Defensive equity seeking Seeks to provide a solution for leveraging a time-tested process distributable income via options income-seeking investors, while ● The Portfolio
Slide 3: Equities assets under management
Equities assets under management As of June 30, 2024, J.P. Morgan Asset Management’s Equity teams manage USD 963 billion Equities U.S. Equity USD 963bn total assets under management USD 680bn total assets under management USD 167bn 17% USD 229bn 34% USD 116bn USD 680bn 12% 71% USD 295bn 43% USD 156b
Slide 4: U.S. Equity Solutions Team
U.S. Equity Solutions Team Lee Spelman Hamilton Reiner Managing Director Managing Director Head of U.S. Equity CIO U.S. Core Equity Experience: 48/35 Experience: 37/15 Portfolio Management Team Fundamental Research Quantitative Research Hamilton Reiner Ralph Zingone David Small Wonseok Choi, PhD Man
Slide 5: Traditionally, there is a tradeoff between liquidity and yield
Traditionally, there is a tradeoff between liquidity and yield Asset class yields Percent Lack of liquidity Lack of yield 14% 12.1% Equities 12% Fixed income 9.4% Alternatives 10% 7.9% 7.9% 8% 6.4% 6.2% 6% 5.5% 4.4% 4.4% 4.3% 4.3% 3.8% 4% 3.3% 3.2% 2.7% 2.5% 2% 1.3% 0% Source: BAML, Bloomberg, Clark
Slide 6: A multi-pronged approach to total return
Equity Premium Income total return components A multi-pronged approach to total return Annualized total return expectations in a historically normalized environment Dividends Options Premium Underlying Equity Portfolio* Forgone Upside Equity Premium Income Total Return Contribution Net Equity For il
Slide 7: Investment philosophy: Our key tenets
Investment philosophy: Our key tenets Seeking income as the outcome in a total return portfolio Balancing income Income without and total return leverage or duration Income is a goal, Modernized approach not a target to call overwriting For illustrative purposes only. The Manager seeks to achieve th
Slide 8: Equity Premium Income's role in a portfolio: Seeks income as the outcome
Equity Premium Income’s role in a portfolio: Seeks income as the outcome Providing income with prospects for capital appreciation Income model addition Conservative equity solution Credit replacement ● Strategy seeks to provide income for ● Strategy for investors wanting more ● Strategy utilized for
Slide 9: Equity Premium Income: Investment process
Equity Premium Income: Investment process Building blocks include an underlying equity portfolio with an options overlay “We believe a portfolio of companies with strong fundamentals Hamilton Reiner Ralph Zingone Portfolio Manager Portfolio Manager coupled with a disciplined options overlay could en
Slide 10: Options overlay: As volatility increases, potential for incremental income increases
Options overlay: As volatility increases, potential for incremental income increases 20% 90 Peak: 31.32% as Peak: 26.41% as 18% of 3/20/2020 80 of 11/21/2008 % Out of the Money Call (Upside Cap)/% Options Premium 16% 70 14% Average % 60 Options Premium 12% 50 10% VIX 40 8% 30 6% 20 4% 2% 10 0% 0 Jan
Slide 11: We use options to solve for client outcomes
We use options to solve for client outcomes Selling call options offers the potential benefit of generating income and lowering volatility. In return, investors may forego some of the market upside in exchange for income. What is a call option? Why sell call options? What is call overwriting? A cont
Slide 12: Four key differentiators of the Equity Premium Income Suite
Four key differentiators of the Equity Premium Income Suite Seeks income as the outcome… ● Current income potential: income is derived from both dividends and options premium ● What you make is what you keep: 100% of income paid out monthly, net of fees …in a total return portfolio ● Active underlyi
Slide 13: Key considerations
Key considerations The strategy may not capture all of the We seek an even distribution income, market’s upside but it can vary each month • The strategy is designed to enhance distributable • Options premium generated can vary dependent income comprised of dividends and options upon prevailing vola
Slide 14: Equity Premium Income's Scorecard
Equity Premium Income’s Scorecard In Equity Premium Income, we are seeking to deliver… Consistent levels of annual income paid out monthly Lower volatility and beta than the S&P 500 Better Sharpe ratio than the S&P 500 Positive up/down capture versus the S&P 500 Attractive total return Source: J.P.
Slide 15: Appendix
Appendix 15 For Advisor use only - Not for Retail use or distribution
Slide 16: J.P. Morgan US Equity Premium Income: Fee Schedule
J.P. Morgan US Equity Premium Income: Fee Schedule Annual Management Fund Minimum Investment Requirement Fee ETF (JEPI) 0.35% -- 16 For Advisor use only - Not for Retail use or distribution
Slide 17: Biographies – Portfolio Management Team
Biographies – Portfolio Management Team Hamilton Reiner Hamilton Reiner, managing director, is CIO of the U.S. Core Equity Team, Head of U.S. Equity Derivatives for J.P. Morgan Equity Asset Management, and a portfolio manager. He has been managing U.S. equities and U.S. equity derivatives for over 3
Slide 18: Biographies – Investment Specialist Team
Biographies – Investment Specialist Team Jenna Silver Jenna Silver, executive director, is an investment specialist in the U.S. Equity Group. An employee since 2013, Jenna is the head of the investment specialist team that is responsible for communicating investment performance, outlook, and strateg
Slide 19: J.P. Morgan Asset Management
J.P. Morgan Asset Management Commissions, trailing commissions, Risks of investing in equity premium income management fees. By contrast, the performance management fees and expenses all may be ETF. The price of equity securities may fluctuate of the Fund reflects the deduction of the mutual associa
Slide 20: J.P. Morgan Asset Management
J.P. Morgan Asset Management Telephone calls and electronic communications may be monitored and/or recorded. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy. This communication is issued
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