J.P. Morgan Asset Management plans to offer an active exchange-traded fund focused on China, a Securities and Exchange Commission filing Monday showed.
Under normal circumstances, the JPMorgan Active China ETF will invest at least 80% of its assets in equity securities and equity-related instruments that are linked economically to China, the filing said. The fund will typically hold between 40 and 70 securities.
The ETF may invest in securities across all market capitalizations, although it may invest a significant portion of fund assets "in companies of any one particular market capitalization category," the filing said.
"Investments in Mainland China involve political and legal uncertainties, currency fluctuations and aggressive currency controls, the risk of confiscatory taxation, and nationalization or expropriation of assets, which could adversely affect and significantly diminish the values of the Mainland Chinese companies in which the fund invests," the filing said.
The filing listed J.P. Morgan Investment Management Inc. as investment adviser and J.P. Morgan Asset Management (Asia Pacific) Ltd. as investment subadviser. Li Tan, an executive director at the subadviser, and Rebecca Jiang, a managing director at the sub-adviser, were listed as portfolio managers.
A spokeswoman for JPMAM on Monday declined to comment beyond the filing. JPMAM had $2.3 trillion in assets under management as of Sept. 30, she said.