J.P. Morgan Asset Management is set to list its first two European ETFs on the London Stock Exchange, which will be actively managed liquid alternative strategies.
Constructed using a bottom-up approach, the JPM Equity Long-Short UCITS ETF will gain exposure to value, quality and momentum factors within developed global equity markets, employing a systematic, rules-based investment approach.
Meanwhile, the JPM Managed Futures UCITS ETF will gain exposure across equity, fixed income, currency and commodity markets through carry and momentum factors.
It will also have a bottom-up approach by taking long and short positions in futures markets, attempting to provide returns which are uncorrelated to traditional asset classes.
Designed by JPMAM's quantitative beta strategies team, the firm said the move is part of the "democratisation" of hedge fund investing, as both ETFs will offer exposure to characteristics typical of hedge funds which use alternative beta.
Alternative beta strategies are rules-based, designed to access hedge fund returns which are attributable to systematic risks.
Bryon Lake, international head of ETFs at JPMAM, who joined the business in March, said the firm is planning to launch a number of ETF strategies in both the equity and fixed income spaces over time.
Lake said: "This first wave of ETF listings is the next step in our commitment to building our active, strategic beta and alternative beta ETF capabilities.
"We intend to build on this momentum going into 2018 as we introduce more of JPMAM's investment capabilities into the ETF vehicle.
"Both the managed futures strategy and equity long/short strategy have historically had a low correlation to equities and bonds. We believe they will serve as useful tools to help investors build better portfolios."
Along with appointment of Lake, the firm also hired Deutsche Bank's John Adu as UK ETF distribution head and Societe Generale's Tom Stephens as ETF international capital markets head last month.
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