JPMorgan Global Emerging Markets Research Enhanced Index Equity (ESG) UCITS ETF Dist

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 30bps

Trading Currency: GBX

Pays Income: False

Listing Date: 22 Sep 2021

Ticker: JRDM

ISIN: IE000Y4K4833

This fund presents a compelling investment vehicle for those seeking actively managed exposure to the dynamic growth potential of emerging markets. It is not a traditional passive tracker; instead, it employs a sophisticated "Research Enhanced Index" (REI) strategy. The core objective is to deliver returns that exceed the MSCI Emerging Markets Index by strategically selecting companies from this universe. The investment process is rooted in a disciplined, bottom-up security selection framework that leverages the manager's extensive proprietary research capabilities. This active approach allows for a flexible portfolio construction that aims to capitalize on market inefficiencies and identify promising opportunities that a standard index-tracking product might overlook.

The portfolio is built through a meticulous analysis of company fundamentals. The investment team focuses on identifying high-quality companies that demonstrate sustainable returns and are trading at compelling valuations. This involves a multi-faceted evaluation, considering factors like a company's financial health, management quality, competitive positioning, and growth prospects. By doing so, the strategy aims to slightly overweight stocks with attractive characteristics while underweighting or avoiding those with less favourable profiles, all while maintaining a risk profile broadly similar to the benchmark index. The result is a diversified portfolio spread across various emerging market countries and sectors, offering a core holding for investors looking to participate in emerging market growth with the potential for alpha generation.

This product is designed for investors with a medium to long-term horizon who are comfortable with the inherent risks of investing in emerging market equities but seek the potential for outperformance through active management. By blending the broad diversification of an index with the stock-picking acumen of an active manager, the fund provides a nuanced approach to this asset class. It offers a core, diversified exposure to companies in developing economies, underpinned by a systematic and research-intensive process that aims to enhance returns over a purely passive strategy.