Investment Product and Service Launches

JPMorgan launches China active ETF; First Trust launches inflation sensitive ETF; Modern Capital announces the Modern Capital Tactical Opportunities Fund; and more.

J.P. Morgan Asset Management Launches JPMorgan Active China ETF

J.P. Morgan Asset Management announced the launch of the JPMorgan Active China ETF. The fund is designed to provide a “best ideas” portfolio of Chinese equities, focusing on an investment process driven by bottom-up stock selection.

Managed by JPMorgan Asset Management (Asia Pacific) Ltd., the fund leverages the Greater China research team within J.P. Morgan’s emerging markets and Asia Pacific Equities team.

“The launch of JPMorgan Active China ETF is another example of our commitment to delivering innovative and differentiated investment solutions to clients,” said Bryon Lake, global head of ETF solutions at J.P. Morgan Asset Management. “There are a lot of opportunities in China that investors want to invest in with intentionality, and we are excited to offer them a strategic option to capitalize on.”

First Trust Launches First Trust Bloomberg Inflation Sensitive Equity ETF

First Trust Advisors LP announced it has launched a new exchange-traded fund, the First Trust Bloomberg Inflation Sensitive Equity ETF.

The fund looks for investment results that correspond generally to the price and yield of the Bloomberg Inflation Sensitive Equity Index.

The FTIF aims to combat inflation by investing in companies in the energy, materials and real estate sectors. These companies generate high free cash flow and have shown historically strong performance during inflationary cycles.

“We believe that high inflation is one of the most important challenges that investors are facing in 2023,” said Ryan Issakainen, a senior vice president and ETF strategist at First Trust, in a statement. “High quality stocks from sectors that have historically benefitted from rising prices may help investors navigate this environment.”

Modern Capital Announces Capital Tactical Opportunities Fund

Modern Capital Inc. announced that the Modern Capital Tactical Opportunities Fund is available to investment advisers who have custody of client accounts at Charles Schwab.

“Our goal is to be on all the major RIA platforms that investment advisors utilize daily. Charles Schwab is a game-changer for our firm, and we are eager to get to work,” said Michael Pierce, head of institutional distribution at Modern Capital, in a statement.

The fund seeks to provide income and capital gains by investing a significant portion of the portfolio in closed-end funds, exchange-traded funds and sponsored American depositary receipts. Unlike funds with a narrow mandate restricting portfolio managers’ ability to react to fluid market conditions, MCTDX allows for greater discretion.

Mirae Asset Mutual Fund Launches Smart Beta ETF

The Mirae Asset Financial Group announced the launch of the Mirae Asset Nifty 100 Low Volatility 30 ETF. The product is a smart beta ETF that aims to measure the performance of the securities in the large market capitalization segment.

Key Highlights of Nifty 100 Low Volatility 30 Index ETF include:

  • In the short term, it can be used as an investment during bear markets/choppy markets;
  • In the long term, it can used for investment, as the product has generated higher risk-adjusted returns over a longer horizon;
  • It has relatively lower drawdown compared to a broad market; and
  • It provides alternate sectorial exposure, which is different from the Nifty 100 Index.

“Smart beta strategies typically capture factor exposures using systematic, rules-based approaches cost-effectively,” Mirae Asset’s head of ETF products, Siddharth Srivastava, said in a statement. “[The] Nifty 100 Low Volatility 30 Index aims to generate better risk-adjusted return over a longer horizon and provides alternate sectorial exposure. This fund may be used by investors who are cautious about portfolio volatility and downside risk and are keen to generate long-term wealth with relatively lower risk.”

Brown Advisory Launches Sustainable Value Mutual Fund

Brown Advisory announced the launch of the Brown Advisory Sustainable Value Fund.

The fund invests in large-market capitalization companies with durable fundamentals and capital discipline that are deemed undervalued by the portfolio manager. The companies should satisfy the fund’s environmental, social and governance criteria.

The fund will be managed by Michael Poggi, who joined Brown Advisory as an equity analyst in 2003. During his tenure, he has covered a range of sectors, with a focus on value investment opportunities.

“The Sustainable Value Fund is unique because it combines Brown Advisory’s expertise in sustainable research with our years of experience in large cap and value investing,” said Poggi in a statement. “We believe that this approach allows us to uncover undervalued companies that others may overlook. We believe that the result of integrating our fundamental research with an ESG lens, utilizing our extensive and diverse team of analysts, will drive our ability to deliver returns for our investors.”