JP Morgan Asset Management has announced it has taken a minority stake in exchange-traded fund provider Global X Management Company as it looks to expand and deepen its participation in the ETF industry. Global X has over 40 ETF solutions and is known for its innovative approach to product development, while JP Morgan has only seven strategic ETFs.
Jed Laskowitz, Co-Head of Global Investment Management Solutions for JP Morgan Asset Management.
“Investing in Global X augments our ETF strategy by expanding and deepening our participation in this fast-growing industry,” said Jed Laskowitz, Co-Head of Global Investment Management Solutions for JP Morgan Asset Management. “We will continue to develop the JP Morgan ETF line-up with an eye toward future innovation in active ETFs while building this strategic partnership.”
Robert Deutsch, Global Head of ETF Solutions for JP Morgan Asset Management, added: “Global X has become a leading provider of ETF solutions, and we are pleased to have them as a strategic partner. This investment complements the growth of JP Morgan’s own ETF line-up, with seven strategic beta ETFs launched and many more to come.”
Global X’s ‘smart core’ range serve as key portfolio building blocks that deliver exposure to specific risk factors or geographies. This family includes the smart beta multi-factor ETFs, which target value, momentum, size, and low volatility, as well as the Next Emerging & Frontier ETF, which targets high growth potential in developing nations.
The firm’s income range offers solutions to investors seeking to increase or diversify their portfolio’s income. The best known of these are perhaps the SuperDividend ETFs, which invest in the highest dividend yielding securities in the world. The range also includes alternative income ETFs, such as MLPs and YieldCos.
The firm also delivers alpha-targeting strategies through their ‘guru’ range of ETFs. With a goal of delivering market-beating total returns based on methodologies backed by academic research, this family of funds follows the investments of some of the largest hedge fund managers and activist investors in the world.
Finally the firm provides a range of thematic ETFs which range from a lithium ETF to a fund tracking social media companies throughout the world. Investors looking for more targeted access to Chinese markets may also be interested in the firm’s range of Chinese sector ETFs (covering consumer, energy, financials, industrials, materials and technology exposures).
This investment will have no impact on how JP Morgan ETF Solutions and Global X operate their respective businesses. Specifically, there will be no co-marketing, investment management, distribution agreements or shared governance between the two organizations. This investment does not result in Global X becoming an affiliate of JP Morgan.
“We are excited to establish this relationship with JP Morgan and to receive JP Morgan’s strong vote of confidence in the future of Global X,” said Global X CEO and Co-Founder Bruno del Ama. “Global X has always been committed to empowering our clients by responding to their evolving needs with intelligent investment solutions. This new strategic investment from JP Morgan will help Global X to accelerate the growth of our product suite and the expansion of our client service capabilities.”
The size of the stake was not disclosed.