JPMorgan releases new alternative energy product

JPMorgan will continue its push into the retail product market with the launch of what is believed to be Australia’s first structured alternative energy investment product.

In the first in a new series of structured investments to be introduced to retail investors, JPMorgan has launched the Alternative Energy Strategic Asset Securities (STRATAS).

Group vice president, equity derivatives and structured products, David Jones-Prichard said the Alternative Energy STRATAS would be made available through financial advisers and brokers.

“There are no direct sales; every product must go through an approved financial planner,” Jones-Prichard said.

He said JPMorgan is in the process of aligning itself with a number of dealer groups to enable investors access to the product. Jones-Prichard said at present the group has approved between six and eight dealer groups, though he would not release exact names, only that the groups “are at the larger end of town”.

He said the new energy product leverages off JPMorgan’s global expertise, and continues to build on the company’s presence within the Australian retail structured product market.

“Alternative Energy STRATAS gives investors a unique opportunity to invest in the performance of the dynamic global alternative energy sector via exposure to the DAXglobal Alternative Energy Index,” he said.

“The securities offer a 100 per cent principal protection facility when held to maturity over a five-year term, as well as the benefits of geographic and asset diversification. In addition, there is no direct currency risk as the securities are hedged to the Australian dollar.”

JPMorgan’s Alternative Energy STRATAS gives investors exposure to the performance of 15 of the world’s largest alternative energy companies. These companies encompass sectors such as natural gas, ethanol, solar, wind and geothermal/hydro batteries.

JPMorgan is the investment arm of JPMorgan Chase & Co, a leading global financial services firm with assets of US$1.4 trillion and operations in more than 50 countries.