JP Morgan Asset Management (JPMAM) has launched four low-cost exchange-traded fund (ETF) models in Australia in collaboration with Vanguard Australia, which will act as index manager for the models.
The partnership combines JPMAM’s active management expertise with Vanguard’s passive investment leadership, aiming to offer cost-effective portfolio solutions for advisers and their clients.
The four strategic asset allocation models – Conservative, Balanced, Growth and High Growth – have been constructed by JPMAM’s global multi-asset solutions team using its Long-Term Capital Market Assumptions, which is now in its 30th year.
Mark Carlile, head of wholesale, Australia and New Zealand, said: “Last year’s report reinforced the importance of building goal-aligned portfolios that can withstand market volatility and seize growth opportunities.”
“These low cost models, which combine active ETFs from JPMAM and passive index ETFs from Vanguard, are a true reflection of this,” he added.
The collaboration reflects a shared “client first” approach and responds to the rapid adoption of ETF models across Australia’s wealth management sector.
According to JP Morgan, this trend has been driven by the search for efficiency and consistency in portfolio construction, enabling advisers to focus more on personalised advice.
Andrew Creber, Australia and New Zealand CEO at JPMAM, said the partnership captures the best of both investment worlds.
“Allocating between active and passive is an active decision.
“As a leading global active asset manager and a long-term advocate for active investing, we are excited to partner with a global leader in passive investing to bring the expertise of both to Australian wealth managers and advisers,” he said.
Rachel White, head of financial adviser services at Vanguard Investments Australia, said the collaboration will extend Vanguard’s reach while reinforcing its existing adviser relationships.
“We are excited to be the index partner with JPMAM on their new models.
“As we continue to support our long-standing adviser base, these models also enable us to thoughtfully extend our reach into the broker and private wealth segment – providing a compelling blend of active and passive strategies,” she said.
The models, which will be available via third-party investment platforms, have total all-in fees starting from 46 basis points.
“This partnership is the first of its kind globally between our organisations and we are proud to be leading the charge in Australia,” said Daniel Shrimski, managing director, Vanguard Investments Australia.
