JPMorgan Global Select Equity Active ETFs Report Zero Derivative Exposure for June 2026

Mandatory Derivative Disclosure Under ASX Operating Rule 10A.3.1(e)

The company update was lodged by JPMorgan Asset Management (Australia) Limited on 3 July 2026 and covers the period ending 30 June 2026. The disclosure is made in accordance with a condition imposed by ASX under Operating Rule 10A.3.1(e), which requires active ETF managers to regularly report the notional derivative exposure held within their funds relative to net asset value. This type of mandatory transparency mechanism is designed to keep investors informed about the risk profile of active ETFs, particularly given that derivatives can amplify gains or losses and alter the effective exposure of a portfolio beyond its headline equity holdings.

JPMorgan Asset Management (Australia) Limited acts as the manager of both funds, while Perpetual Trust Services Limited (ABN 48 000 142 049, AFSL 236648) serves as the issuer. This structural arrangement — where a specialist asset manager operates funds on behalf of a trustee — is common in the Australian managed fund and ETF landscape. The disclosure covers two distinct products: JGLO, which is unhedged and provides exposure to global equities in their local currencies, and JHLO, which is currency-hedged to reduce the impact of foreign exchange fluctuations on Australian-dollar returns.

JGLO Net Asset Value of $6.59 Million at 30 June 2026

The JPMorgan Global Select Equity Active ETF (JGLO) reported a Fund Net Asset Value of $6,593,795.19 as at 30 June 2026, representing 100% of the fund’s value with no derivative overlay. The notional listed derivative exposure stood at nil, as did the OTC derivative exposure excluding FX hedging, both registering at 0.00% of NAV. This means that as of the reporting date, JGLO’s entire portfolio value was attributable to direct equity holdings or equity-related instruments, with no leveraged or synthetic positions contributing to or detracting from performance.

JGLO’s investment mandate, as described in its Product Disclosure Statement (PDS), focuses on long-term capital appreciation. The fund invests primarily in equity securities of companies in globally developed markets, with the Underlying Fund also having the capacity to invest in global emerging markets. Under normal circumstances, at least 80% of the Underlying Fund’s assets are held in equity securities and equity-related instruments. The absence of derivative exposure as at month-end does not preclude the fund from using derivatives at other times, but the current disclosure provides investors with a monthly snapshot of the fund’s positioning.

JHLO Net Asset Value of $4.97 Million and the Role of Currency Hedging

The JPMorgan Global Select Equity (Hedged) Active ETF (JHLO) reported a Fund Net Asset Value of $4,966,729.84 as at 30 June 2026. Like JGLO, JHLO recorded zero notional listed derivative exposure and zero OTC derivative exposure excluding FX hedging, both at 0.00% of NAV. It is important for investors to note that the disclosure explicitly excludes derivatives used for currency hedging purposes. JHLO, by its very nature as a hedged product, will typically employ foreign exchange derivatives to neutralise the impact of currency movements between the Australian dollar and the currencies of its underlying equity holdings.

The exclusion of FX hedging instruments from the reported derivative figures is in line with ASX Operating Rule 10A.3.1(e), which is specifically focused on the notional exposure to listed and OTC derivatives beyond currency management. For JHLO investors, the practical implication is that the fund’s currency risk is actively managed through FX instruments, even though those instruments are not counted in the figures disclosed here. The key takeaway from the June 2026 report is that outside of its currency hedging activity, JHLO held no derivative positions that would add complexity or leverage to its equity exposure.

What Zero Derivative Exposure Means for JGLO and JHLO Investors

A reading of 0.00% for both notional listed derivative exposure and OTC derivative exposure (excluding FX hedging) across both JGLO and JHLO indicates that neither fund was utilising derivatives to gain additional market exposure, implement tactical overlays, or hedge individual equity positions as at the 30 June 2026 reporting date. For investors who prioritise transparency and simplicity in their ETF holdings, zero derivative exposure is generally considered a straightforward outcome — the fund’s returns should closely track the performance of its underlying equity holdings without amplification or attenuation from derivative instruments.

It is worth noting, as the company update clarifies, that the notional derivatives exposure reported is defined as the total market value of the underlying securities over which derivative contracts have been written. This figure is explicitly described as distinct from the profit or loss of any derivative contracts. The disclosure is therefore a measure of gross exposure rather than net gain or loss, and investors should read it in this context when assessing the overall risk profile of the funds.

How Both Funds Pursue Long-Term Capital Appreciation Through Global Equities

Both JGLO and JHLO share the same overarching investment objective: to provide long-term capital appreciation. Each fund achieves this by gaining exposure to an Underlying Fund that invests primarily in equity securities of companies domiciled or listed in globally developed markets, with an additional capacity to invest in global emerging markets. The 80% minimum allocation to equity securities and equity-related instruments under normal circumstances means that both funds are predominantly equity-driven vehicles, with limited scope for significant fixed income, cash, or alternative asset weightings at the Underlying Fund level.

The distinction between the two products lies in their currency treatment. JGLO leaves currency exposure unhedged, meaning Australian investors are exposed to movements in the Australian dollar relative to the currencies of the fund’s global holdings. JHLO, by contrast, seeks to hedge this currency risk back to Australian dollars, making it potentially more suitable for investors who want pure equity market exposure without the additional variable of foreign exchange. Both approaches have their merits depending on an investor’s outlook on the Australian dollar and their overall portfolio construction strategy.

JPMorgan Asset Management’s Regulatory Obligations as an Active ETF Manager

JPMorgan Asset Management (Australia) Limited (ABN 55 143 832 080, AFSL 376919) operates under the Australian financial services licensing regime and is subject to ASX’s specific conditions for active ETF managers. Active ETFs differ from passive index-tracking ETFs in that their portfolio managers exercise discretion over security selection, weighting, and timing — this flexibility is what creates the potential for outperformance relative to a benchmark but also necessitates enhanced disclosure to ensure investors can monitor the nature and extent of any derivative activity.

The monthly derivative exposure disclosure required under ASX Operating Rule 10A.3.1(e) is one such enhanced obligation. By publishing these figures at regular intervals, JPMorgan Asset Management allows both retail and institutional investors to track whether the fund manager is introducing additional complexity or leverage into the portfolio beyond simple equity ownership. The consistency of zero-derivative readings across consecutive reporting periods — if that proves to be the case — would suggest a relatively straightforward implementation of the global equity strategy for both JGLO and JHLO.

Fund Size Context and What the Current NAV Figures Suggest About Scale

With JGLO reporting a NAV of approximately $6.59 million and JHLO reporting approximately $4.97 million as at 30 June 2026, both funds remain relatively modest in size compared to many established ETFs listed on the ASX. The combined NAV of the two funds at the reporting date was approximately $11.56 million. Fund size can be a relevant consideration for investors assessing liquidity, bid-ask spreads, and the fund manager’s ability to negotiate competitive execution costs when trading in global equity markets.

It should be noted that smaller fund sizes do not necessarily reflect underperformance or lack of investor interest — both funds may be at earlier stages of their growth trajectory, and NAV can fluctuate with both market movements and net fund flows from investors entering or exiting the product. The company did not disclose unit holder numbers, performance attribution data, or information about inflows and outflows in this company update, so further context on fund growth would need to be sourced from the funds’ PDS, regular financial statements, or direct contact with JPMorgan Asset Management Australia on 1800 576 468.

Upcoming Monthly Disclosures as the Key Monitoring Point for Derivative Positioning

Given the mandatory and recurring nature of this disclosure under ASX Operating Rule 10A.3.1(e), investors and market observers should anticipate similar monthly updates covering subsequent reporting periods. The next key milestone will be the July 2026 derivative exposure disclosure, which will confirm whether the zero-derivative positioning observed at 30 June 2026 has been maintained or whether either JGLO or JHLO has introduced listed or OTC derivative exposure in the interim period.

Any future reading above 0.00% for either fund would represent a change in positioning that investors may wish to investigate further, as it could indicate a tactical overlay, a hedging strategy beyond FX, or a shift in portfolio construction approach by the fund manager. For now, the June 2026 figures present a clean picture: two actively managed global equity ETFs operating with no derivative leverage or synthetic market exposure beyond their FX hedging framework. Investors seeking further information about the funds or this disclosure are directed by JPMorgan Asset Management to contact the manager directly.

Issuer and Manager Responsibilities Under the Fund’s Governance Structure

The company update is issued by JPMorgan Asset Management (Australia) Limited in its capacity as fund manager, on behalf of Perpetual Trust Services Limited, which acts as the issuer of both JGLO and JHLO. This two-party structure — a responsible entity or trustee alongside a specialist investment manager — is a well-established governance model in Australian managed investment schemes. Perpetual Trust Services Limited holds its own AFSL (236648) and ABN (48 000 142 049), providing an additional layer of oversight and regulatory accountability to the fund structure.

JPMorgan Asset Management has also included a standard disclaimer noting that the release is for general information purposes only and should not be taken as financial product advice, a recommendation, or an offer with respect to the purchase or sale of any financial product. Investors considering exposure to JGLO or JHLO are encouraged to review the relevant PDS and consider their personal financial circumstances or seek professional advice before making investment decisions. The immediate share price impact of this disclosure was not clear from available public information, as derivative exposure reports of this nature are routine compliance disclosures rather than material market-moving announcements.