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J.P. Morgan to Liquidate Six ETFs: Portfolio Products

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JP Morgan sign  J.P. Morgan headquarters in New York. (Photo: AP)

J.P. Morgan Asset Management plans to liquidate six of its exchange-traded funds that have been trading on the New York Stock Exchange Arca.

The ETFs affected by the liquidation and dissolution plan are the: JPMorgan Diversified Return Europe Equity ETF (JPEU, with a net expense ratio of 0.37%); JPMorgan Long/Short ETF (JPLS, 0.69%); JPMorgan Managed Futures Strategy ETF (JPMF, 0.59%); JPMorgan Diversified Return Global Equity ETF (JPGE, 0.29%); JPMorgan Diversified ETF (JPHF, 0.85%); and JPMorgan Event Driven ETF (JPED, 0.85%).

Shareholders of the funds may sell their holdings up until the market close on the designated last day of trading, the firm said. Creation orders of shares of JPEU, JPLS and JPMF will stop being accepted from authorized participants after the close on June 12 and will be delisted before the market opens June 15. Creation orders of shares of the other three ETFs will stop being accepted after the June 19 close will be delisted before the market opens June 22.

The firm on Monday declined to say why it opted to liquidate the six ETFs. In a statement included in its announcement, Bryon Lake, head of Americas ETF for J.P. Morgan Asset Management said only: “We regularly monitor and evaluate our product lineup as market and economic conditions evolve. This process allows us to optimize and scale our product offerings to better meet client objectives and market demand.”

MSCI Introduces 5 New Thematic Indexes

MSCI expanded its “megatrend” index suite with the launch of five thematic indexes focused on what it called “disruptive innovation.”

The new indexes track the performance of companies in fields including autonomous technologies, genomics, fintech and next-generation Internet, the company said.

They will “leverage insights based on collaboration” with ARK Investment Management, a global investment manager that specializes in analyzing disruptive innovation in the public markets.

The five new indexes are:

  • MSCI ACWI IMI Autonomous Technology & Industrial Innovation Index: companies specializing in fields including industrial automation, energy storage/production/artificial intelligence and machine learning
  • MSCI ACWI IMI Genomic Innovation Index: companies specializing in fields including genomic sequencing, synthesis, analysis or instrumentation, bio computing, molecular diagnostics and agricultural biotechnology
  • MSCI ACWI IMI Next Generation Internet Innovation Index: companies specializing in fields including Internet-based products and services, new payment methods, big data, the Internet of Things and social media
  • MSCI ACWI IMI Fintech Innovation Index: companies that derive significant revenues, based on the underlying index methodology criteria, from the development of new products and services as a result of technological innovation in the financial sector
  • MSCI ACWI IMI Innovation Index, which includes companies in the four above-mentioned indexes: autonomous technology & industrial Innovation, genomic Innovation, fintech Innovation, and next generation internet Innovation.

DPL Teams With Transamerica

DPL Financial Partners made the Transamerica annuity I-Share variable annuity available to DPL’s 800 RIA member firms.

The annuity features sub-account options from investment managers in equity, fixed-income and alternatives, along with several living benefits expected to appeal to fee-only advisors and their clients, the firms said.

“Recent market volatility has exposed vulnerabilities in investment-only portfolios, so advisors are looking for products that can bring some protection and security to their clients,” according to DPL CEO and founder David Lau. Transamerica’s I-Shares variable annuity “offers clients market participation with several principal protection options, as well as the ability to create guaranteed income” and is “exactly the type of solution our members have been seeking in this volatile market,” said Lau in a statement.

In addition to investment options from firms including American Funds, BlackRock, T. Rowe Price and Janus, the annuity’s optional living benefits provides the opportunity to lock in account value  annually, based on the highest monthly policy value (rather than quarterly or annually), as well as several other living benefit riders with customizable features, the firms said. Launches New Calculators launched several student loan calculators, as well as separate financial aid and scholarship calculators that it said were designed to help people “make smarter, more informed decisions about paying for college.”

Its new loan calculators include:

1.    Loan Calculator, to determine monthly loan payment and total payments on student loans, auto loans and mortgages, based on the loan amount, interest rate, loan fees and repayment term.

2.    Loan Prepayment Calculator, the first of two loan prepayment calculators, that shows how much can be saved and how much sooner it will take to pay off loans by making extra payments. It can be used with student loans as well as fixed-rate auto loans and mortgages.

3.    Student Loan Prepayment Calculator, the second of two loan prepayment calculators that evaluate the impact of making extra payments, showing how much can be saved on interest by making extra payments and how much extra would have to be paid to pay off debt quicker.

4.    Loan Refinancing Calculator, showing how much monthly loan payments or total payments can be lowered by refinancing student loans into a new loan with a new interest rate and new repayment term.

5.    Loan Comparison Calculator, allowing for the comparison of two or more different loans, identifying which loan offers a lower monthly payment and which one offers a lower total cost.

6.    Cost of Deferment Calculator that evaluates the impact of interest capitalization at the end of a deferment or forbearance on the monthly loan payment and the cost of the loan, assuming that loan payments are re-amortized after deferment or forbearance.

The new Scholarship Tax Calculator, meanwhile, can be used to figure out the taxable amount of scholarships and calculate how much will have to be paid in taxes.

And the new Financial Aid Calculator can be used to estimate expected family contribution and financial need based on student and parent income and assets, family size, number of children in college, age of the older parent and the student’s dependency status, the company said.

Several other companies offer online college cost calculators. ThinkAdvisor editors tested several calculators in 2018 to determine which are the best for advisors trying to help their clients.

COVID-19 Resource Center Launched for Finance and Tech

DHI Group’s eFinancialCareers online hub launched a COVID-19 Resource Center it said was designed to “advise and enable finance and technology professionals to manage” their careers. and provide employers with curated, industry-specific insights.

The new resource center features expert advice and resources for finance and tech professionals and employers alike, using eFC’s knowledge of the finance industry and its trends to “provide the most relevant information during this challenging time,” it said.

The eFinancialCareers COVID-19 Resource Center includes data visualizations of finance and tech job postings by market, virtual career fair event information, recent finance job openings and eFC and finance industry news, the firm said.

— Check out last week’s portfolio product roundup here: VanEck Enhances Fallen Angel Bond ETF’s Holdings: Portfolio Products