JP Morgan Asset Management (JPMAM) is set to launch three new bond exchange traded funds (ETFs).
The Ireland--based Ucits funds will be:
- US dollar-denominated emerging markets sovereign bond ETF (JPMB),
- Ultra-short income ET (JPST)F; and
- Beta Builder short dated ETF (JE13).
‘As part of the continued growth and evolution of our ETF business, we’re pleased to be launching our first fixed income ETFs in Europe, offering investor’s access to our well-established fixed income expertise,’ said Bryon Lake (pictured), international head of ETFs at JPMAM.
‘Fixed income ETFs continue to be amongst the fastest growing areas of the ETF industry, a momentum which we expect to continue as these products mature and evolve. Fixed income ETFs offer lower-cost, convenience, transparency and intra-day access and can be used to help build more robust portfolios and solve for a variety of investment needs.
JPMB will track the JPM Emerging Market Risk-Aware Bond Index, created by JPMAM’s quantitative beta strategies team and published by JPMorgan’s investment bank.
A managed ETF, JPST will seek to provide diversified exposure to very short maturity bonds and debt instruments across investment-grade corporate bonds and government debt.
The ETF will seek to target portfolio duration of less than one year and will be managed by the five-strong investment team – led by David Martucci, global head of the JP Morgan global liquidity managed reserves team and portfolio manager.
JE13, also designed by JPMAM’s Quantitative Beta Strategies team, aims to track the J.P. Morgan EMU Government Bond 1-3 Year Index and will have a TER of up to 10 basis points.
The new funds will list on the London Stock Exchange on the 22 February 2018.