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