JPMorgan Global Emerging Markets Research Enhanced Index Equity Active UCITS ETF

Investment rationale

This fund is designed to give investors broad equity exposure to emerging markets while seeking long-term returns above the MSCI Emerging Market Index (Total Return Net). It is intended for investors who want emerging market exposure with risk characteristics broadly similar to the benchmark and who are prepared to accept the volatility of these markets. The summary risk indicator is 4 out of 7 and the recommended holding period is 5 years, which positions it as a long-term equity allocation. Its distinct feature is an actively managed research enhanced index approach that stays close to the benchmark while incorporating ESG characteristics, exclusions, and sustainable investment minimums.

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How the strategy works

The objective is to achieve a long-term return in excess of the MSCI Emerging Market Index (Total Return Net) by actively investing primarily in a portfolio of emerging market companies. The Sub-Fund invests at least 67% of assets, excluding ancillary liquidity, in equity securities of companies domiciled in or carrying out the main part of their economic activity in emerging market countries, including smaller capitalisation companies. At least 51% of NAV is invested in companies with positive environmental and/or social characteristics and good governance as measured by proprietary ESG scoring and/or third-party data, and at least 20% of NAV is invested in Sustainable Investments under SFDR. The benchmark is used as a reference for performance comparison and portfolio construction, with the manager seeking to outperform it over the long term without tracking or replicating it; the fund may invest up to 40% in China A-Shares via Stock Connect and up to 40% of NAV in securities using VIE structures, may use derivatives for efficient portfolio management, normally pays dividends quarterly, and has a recommended holding period of 5 years.

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Investment philosophy

• The portfolio is built from an emerging markets equity universe, investing primarily in companies domiciled in, or conducting the main part of their economic activity in, emerging market countries, including smaller capitalisation companies.

• The manager uses a fundamental, bottom-up stock selection process within a research enhanced index framework, overweighting securities considered to have the highest potential to outperform and underweighting or avoiding those viewed as most overvalued relative to the benchmark.

• ESG is built into the process through values- and norms-based screening, exclusions on certain industries and issuers, systematic ESG analysis on at least 90% of securities purchased, and minimum thresholds for companies with positive ESG characteristics; at least 51% of NAV must be in companies with positive environmental and/or social characteristics and good governance, and at least 20% in Sustainable Investments.

• Portfolio construction is described as diversified and risk controlled, with risk characteristics such as volatility intended to be broadly equivalent to the benchmark; the fund may invest up to 40% in China A-Shares via Stock Connect and up to 40% of NAV in VIE-related securities.

• As of 31 August 2026, the fund held 389 securities, with top positions including TSMC (9.7%), Samsung Electronics (8.3%), SK Hynix (5.7%) and Tencent (3.1%); regionally it was led by Taiwan (26.4%), China (21.8%), South Korea (20.9%) and India (10.9%), while sector weights were led by Information Technology (41.0%) and Financials (20.7%).

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Management team

The named portfolio managers are Lina Nassar and Sonal Tanna.

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Distinctive features

The fund combines active management with a research enhanced index approach that is intended to deliver excess return while keeping risk characteristics broadly similar to the MSCI Emerging Market Index. It is structured as an Article 8 strategy with explicit ESG implementation, including values- and norms-based screening, minimum investment thresholds for positive ESG characteristics, and a minimum 20% allocation to Sustainable Investments. At 31 August 2026, the portfolio held 389 securities, with TSMC, Samsung Electronics and SK Hynix among its largest positions. It also offers exchange-traded access on the London Stock Exchange in both USD and GBX trading lines. The annual all-in total expense ratio (TER) is capped at 0.30%. This includes management/advisory fees and operating expenses. The ongoing charge under the PRIIPs definition was 0.35% at 31 August 2026. These are different cost measures.

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Risks

The fund has a summary risk indicator of 4 out of 7, reflecting a medium risk classification, and risk may be significantly higher if held for less than the 5-year recommended holding period. Because it invests in equity securities, the value of holdings can rise or fall rapidly based on company-specific developments and general market conditions, and shares can lose most or all of their value in bankruptcy or restructuring. Emerging markets exposure adds political, regulatory and economic instability, less developed custody and settlement, lower transparency, higher volatility and lower liquidity, while emerging market currencies can be especially volatile. Additional risks include currency risk from holdings denominated in currencies other than the base currency, China A-Share access risk through Stock Connect including regulatory, quota, operational and counterparty risks, Indian foreign portfolio investor quota and tax risks, smaller company risk, the possibility that ESG exclusions cause different performance from non-ESG funds, benchmark underperformance risk, and risks linked to the use of derivatives for efficient portfolio management.

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Asset manager

The management company is JPMorgan Asset Management (Europe) S.à r.l., a member of JPMorgan Chase & Co. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide. The management company is located at 6, route de Trèves, L-2633 Senningerberg, Luxembourg. The Sub-Fund is authorised in Ireland and regulated by the Central Bank of Ireland.

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