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JPMorgan Asset Management (Australia) Limited has published its monthly report on notional derivative exposure for the JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF (ASX:JEME), confirming a fund net asset value of approximately $49 million as at 30 June 2026. In accordance with ASX Operating Rule 10A.3.1(e), the report reveals that the fund held zero notional listed derivative exposure and zero OTC derivative exposure excluding foreign exchange hedging at the period’s end. This disclosure provides investors with clear insight into the fund’s current derivative usage, a critical governance measure for active ETFs listed on the ASX. The June 2026 data indicates a straightforward equity-focused portfolio without significant derivative overlays at month-end.<\/p> <\/div>
Key Points<\/h3>
- Fund name: JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF (ASX:JEME)<\/li>
- Net Asset Value (NAV) as at 30 June 2026: $49,004,249.77<\/li>
- Notional listed derivative exposure at 30 June 2026: nil (0.00% of NAV)<\/li>
- OTC derivative exposure excluding FX hedging at 30 June 2026: nil (0.00% of NAV)<\/li>
- Disclosure made under ASX Operating Rule 10A.3.1(e) by JPMorgan Asset Management (Australia) Limited<\/li>
- Investors should monitor upcoming monthly derivative exposure reports and NAV changes amid evolving emerging market conditions<\/li>
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JEME’s Net Asset Value Hits $49 Million at 30 June 2026<\/h2>
The JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF reported a net asset value of $49,004,249.77 as at 30 June 2026, representing the full base for this disclosure. This figure offers investors an up-to-date view of the fund’s size as a listed investment on the ASX. NAV is a key metric reflecting the total market value of underlying holdings less liabilities at the reporting date.<\/p>
Given that NAV for an active ETF like JEME can fluctuate month-to-month due to market movements in emerging market equities and investor inflows or outflows, this figure sets a baseline for the fund’s position at June 2026. The company did not provide comparative NAV data in this report, so investors wishing to track trends should consult prior disclosures or the fund’s product disclosure statement (PDS).<\/p>
Zero Notional Listed Derivative Exposure Indicates Pure Equity Investment<\/h2>
JEME’s June 2026 disclosure notably shows zero notional listed derivative exposure, equating to 0.00% of NAV. This means the fund held no open positions in listed derivative contracts such as futures or exchange-traded options that might provide leveraged or hedged exposure. This absence of listed derivatives suggests the portfolio was fully backed by direct equity holdings at month-end.<\/p>
The reported notional derivative exposure measures the market value of securities underlying derivative contracts and is separate from any gains or losses on those contracts. ASX Operating Rule 10A.3.1(e) requires this transparency to help investors and regulators understand the extent of derivative use in active ETFs. The zero reading confirms that JEME was not employing listed derivatives in its strategy at 30 June.<\/p>
OTC Derivative Exposure Excluding FX Hedging Also Reported as Nil<\/h2>
Alongside listed derivatives, the report confirms that JEME’s OTC derivative exposure—excluding foreign exchange hedging—was also zero (0.00% of NAV) as of 30 June 2026. OTC derivatives include privately negotiated contracts such as swaps and forwards. The absence of OTC derivative exposure reinforces the fund’s direct equity investment approach at the period’s close.<\/p>
FX hedging derivatives are excluded from this disclosure as they are used solely to manage currency risk from international holdings rather than to create leverage or synthetic asset exposure. Given JEME’s focus on emerging market companies denominated in various foreign currencies, some FX hedging likely occurs but falls outside this report’s scope.<\/p>
Portfolio Construction Driven by Emerging Markets Research-Enhanced Mandate<\/h2>
According to the update, JEME aims to outperform its benchmark over the long term by actively investing primarily in emerging market companies. The fund operates via an underlying sub-fund, also targeting benchmark outperformance. Its research-enhanced index strategy combines broad emerging market diversification with active insights to tilt toward higher-conviction positions rather than passively tracking an index.<\/p>
The "research enhanced" approach blends cost-efficient, diversified index exposure with selective active bets based on proprietary analysis. Emerging markets encompass economies across Asia, Latin America, Eastern Europe, the Middle East, and Africa, spanning multiple sectors and currencies. This strategy seeks to capture long-term growth potential while aiming to outperform passive alternatives. No specific country or sector allocations were disclosed in this update.<\/p>
ASX Operating Rule 10A.3.1(e) and the Importance of Monthly Derivative Disclosures<\/h2>
JPMorgan Asset Management (Australia) Limited’s disclosure complies with ASX Operating Rule 10A.3.1(e), which requires active ETFs to regularly report their notional derivative exposures. This rule enhances market transparency by informing investors about the extent of derivative usage relative to NAV in active ETF structures, which often involve more complex instruments than passive funds.<\/p>
Regular monthly disclosures enable investors to track changes in derivative exposure over time. A consistent zero reading suggests a direct investment approach, while any increase in derivative use may prompt investor inquiry into strategy shifts. This transparency supports investor confidence in ASX-listed active ETFs.<\/p>
Fund Management by JPMorgan Asset Management (Australia) Limited<\/h2>
JPMorgan Asset Management (Australia) Limited, holding Australian Financial Services Licence (AFSL 376919) and registered under ABN 55 143 832 080, manages JEME. The company is located at Level 31, 101 Collins Street, Melbourne VIC 3000, and is part of JPMorgan Asset Management’s global platform. The fund is issued by Perpetual Trust Services Limited (ABN 48 000 142 049, AFSL 236648), which acts as trustee and issuer rather than investment manager.<\/p>
This dual-entity structure, with a dedicated investment manager and separate trustee issuer, is standard for managed investment schemes and active ETFs in Australia, providing additional oversight. JPMorgan’s global resources and emerging markets research underpin the fund’s research-enhanced index strategy. Investors seeking details on structure, strategy, or performance can contact the manager at 1800 576 468.<\/p>
Implications of Nil Derivative Exposure for Assessing JEME’s Risk Profile<\/h2>
The confirmation of zero derivative exposure at 30 June 2026 offers investors reassurance regarding JEME’s risk profile. While derivatives can be useful tools, they introduce leverage, counterparty risk, and complexity. The absence of both listed and OTC derivatives (excluding FX hedging) indicates the fund’s returns and risks stem solely from direct equity holdings at that time.<\/p>
However, derivative exposure disclosures represent a snapshot on the final day of the reporting month and may not reflect intra-month activity. The fund could have used derivatives tactically during the month and closed positions before month-end, resulting in a zero report. Investors should consider this reading alongside the fund’s PDS, portfolio updates, and other disclosures for a comprehensive view. The immediate market impact of this disclosure was not evident from available information.<\/p>
Investors Should Monitor NAV and Derivative Exposure Amid Emerging Market Volatility<\/h2>
Going forward, investors tracking JEME should watch for the next monthly derivative exposure report for the period ending 31 July 2026. Any significant change in listed or OTC derivative use relative to NAV would signal a shift in fund positioning requiring closer scrutiny. Similarly, NAV movements from the current $49 million baseline will reflect portfolio performance and investor flows.<\/p>
Emerging markets are often volatile due to currency swings, geopolitical events, commodity price shifts, and global interest rate changes. How JEME’s research-enhanced active strategy manages these factors will influence its ability to outperform its benchmark long term. Market participants will also observe broader trends in Australian emerging market ETF demand, where investors increasingly seek active management to achieve differentiated outcomes beyond passive index tracking.<\/p>
JEME’s Net Asset Value Hits $49 Million at 30 June 2026<\/h2>
The JPMorgan Emerging Markets Research Enhanced Index Equity Active ETF reported a net asset value of $49,004,249.77 as at 30 June 2026, representing the full base for this disclosure. This figure offers investors an up-to-date view of the fund’s size as a listed investment on the ASX. NAV is a key metric reflecting the total market value of underlying holdings less liabilities at the reporting date.<\/p>
Given that NAV for an active ETF like JEME can fluctuate month-to-month due to market movements in emerging market equities and investor inflows or outflows, this figure sets a baseline for the fund’s position at June 2026. The company did not provide comparative NAV data in this report, so investors wishing to track trends should consult prior disclosures or the fund’s product disclosure statement (PDS).<\/p>
Zero Notional Listed Derivative Exposure Indicates Pure Equity Investment<\/h2>
JEME’s June 2026 disclosure notably shows zero notional listed derivative exposure, equating to 0.00% of NAV. This means the fund held no open positions in listed derivative contracts such as futures or exchange-traded options that might provide leveraged or hedged exposure. This absence of listed derivatives suggests the portfolio was fully backed by direct equity holdings at month-end.<\/p>
The reported notional derivative exposure measures the market value of securities underlying derivative contracts and is separate from any gains or losses on those contracts. ASX Operating Rule 10A.3.1(e) requires this transparency to help investors and regulators understand the extent of derivative use in active ETFs. The zero reading confirms that JEME was not employing listed derivatives in its strategy at 30 June.<\/p>
OTC Derivative Exposure Excluding FX Hedging Also Reported as Nil<\/h2>
Alongside listed derivatives, the report confirms that JEME’s OTC derivative exposure—excluding foreign exchange hedging—was also zero (0.00% of NAV) as of 30 June 2026. OTC derivatives include privately negotiated contracts such as swaps and forwards. The absence of OTC derivative exposure reinforces the fund’s direct equity investment approach at the period’s close.<\/p>
FX hedging derivatives are excluded from this disclosure as they are used solely to manage currency risk from international holdings rather than to create leverage or synthetic asset exposure. Given JEME’s focus on emerging market companies denominated in various foreign currencies, some FX hedging likely occurs but falls outside this report’s scope.<\/p>
Portfolio Construction Driven by Emerging Markets Research-Enhanced Mandate<\/h2>
According to the update, JEME aims to outperform its benchmark over the long term by actively investing primarily in emerging market companies. The fund operates via an underlying sub-fund, also targeting benchmark outperformance. Its research-enhanced index strategy combines broad emerging market diversification with active insights to tilt toward higher-conviction positions rather than passively tracking an index.<\/p>
The "research enhanced" approach blends cost-efficient, diversified index exposure with selective active bets based on proprietary analysis. Emerging markets encompass economies across Asia, Latin America, Eastern Europe, the Middle East, and Africa, spanning multiple sectors and currencies. This strategy seeks to capture long-term growth potential while aiming to outperform passive alternatives. No specific country or sector allocations were disclosed in this update.<\/p>
ASX Operating Rule 10A.3.1(e) and the Importance of Monthly Derivative Disclosures<\/h2>
JPMorgan Asset Management (Australia) Limited’s disclosure complies with ASX Operating Rule 10A.3.1(e), which requires active ETFs to regularly report their notional derivative exposures. This rule enhances market transparency by informing investors about the extent of derivative usage relative to NAV in active ETF structures, which often involve more complex instruments than passive funds.<\/p>
Regular monthly disclosures enable investors to track changes in derivative exposure over time. A consistent zero reading suggests a direct investment approach, while any increase in derivative use may prompt investor inquiry into strategy shifts. This transparency supports investor confidence in ASX-listed active ETFs.<\/p>
Fund Management by JPMorgan Asset Management (Australia) Limited<\/h2>
JPMorgan Asset Management (Australia) Limited, holding Australian Financial Services Licence (AFSL 376919) and registered under ABN 55 143 832 080, manages JEME. The company is located at Level 31, 101 Collins Street, Melbourne VIC 3000, and is part of JPMorgan Asset Management’s global platform. The fund is issued by Perpetual Trust Services Limited (ABN 48 000 142 049, AFSL 236648), which acts as trustee and issuer rather than investment manager.<\/p>
This dual-entity structure, with a dedicated investment manager and separate trustee issuer, is standard for managed investment schemes and active ETFs in Australia, providing additional oversight. JPMorgan’s global resources and emerging markets research underpin the fund’s research-enhanced index strategy. Investors seeking details on structure, strategy, or performance can contact the manager at 1800 576 468.<\/p>
Implications of Nil Derivative Exposure for Assessing JEME’s Risk Profile<\/h2>
The confirmation of zero derivative exposure at 30 June 2026 offers investors reassurance regarding JEME’s risk profile. While derivatives can be useful tools, they introduce leverage, counterparty risk, and complexity. The absence of both listed and OTC derivatives (excluding FX hedging) indicates the fund’s returns and risks stem solely from direct equity holdings at that time.<\/p>
However, derivative exposure disclosures represent a snapshot on the final day of the reporting month and may not reflect intra-month activity. The fund could have used derivatives tactically during the month and closed positions before month-end, resulting in a zero report. Investors should consider this reading alongside the fund’s PDS, portfolio updates, and other disclosures for a comprehensive view. The immediate market impact of this disclosure was not evident from available information.<\/p>
Investors Should Monitor NAV and Derivative Exposure Amid Emerging Market Volatility<\/h2>
Going forward, investors tracking JEME should watch for the next monthly derivative exposure report for the period ending 31 July 2026. Any significant change in listed or OTC derivative use relative to NAV would signal a shift in fund positioning requiring closer scrutiny. Similarly, NAV movements from the current $49 million baseline will reflect portfolio performance and investor flows.<\/p>
Emerging markets are often volatile due to currency swings, geopolitical events, commodity price shifts, and global interest rate changes. How JEME’s research-enhanced active strategy manages these factors will influence its ability to outperform its benchmark long term. Market participants will also observe broader trends in Australian emerging market ETF demand, where investors increasingly seek active management to achieve differentiated outcomes beyond passive index tracking.<\/p>
