Lyxor and JP Morgan in smart beta partnership

Risk3Asset manager Lyxor and JP Morgan are to launch a range of risk factor exchange-traded funds (ETFs) together.

Lyxor ETF will use JP Morgan ‘smart beta’ indices for the products.

Paris-based Lyxor, which is the second largest issuer of ETFs in Europe in terms of inflows year to date and has almost €50 billion in assets under management, says the move reflects its commitment to developing smart beta ETFs in order to offer investors risk diversification.

At the same time, equity smart beta has been a key area of JP Morgan’s focus over the last few years, the bank says.

Rui Fernandes, head of Europe, Middle East and Africa equities structuring and fund-linked products at JP Morgan, says: “Investors are seeking more cost-efficient and risk-adjusted alternatives as they continue to invest into equities, and ETFs present a convenient format in which to do that.”

The ETFs are expected to be listed in the coming month.

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