ETFs, Investments

Second fixed income ETF from JP Morgan

JP Morgan Global Bond Active ETF fixed income exchange traded fund

JP Morgan Asset Management has grown its suite of ETF products with the release of a second fixed income product and a hedged version of an existing global equities fund.

JP Morgan Asset Management has released its second fixed income exchange-traded fund (ETF) within four months, increasing the number of listed investment products to 11.

The release of the JPMorgan Global Bond Active ETF (JPGB) follows that of the JPMorgan Income Active ETF (JPIE) in August and, like that fund, it is listed on the Cboe Australia exchange.

The new fund will use the same strategy as the JPMorgan Global Bond Fund, giving investors the opportunity to add duration to a bond portfolio.

JP Morgan Australia and New Zealand head of wholesale Mark Carlile said due to the downturn in inflation and more central banks near the end of higher interest rate cycles, it was a favourable environment for quality fixed income assets.

“An active ETF focused on high-quality bonds, JPGB invests at least 80 per cent in investment-grade bonds, overlaid by a disciplined risk management strategy,” Carlile said.

“The portfolio management team has the ability to tap into a diverse range of alpha sources by investing across countries and sectors, providing investors with quality fixed income and active management in uncertain markets.”

The investment manager also stated it had listed the JPMorgan Global Research Enhanced Index Equity Active ETF (JRHG) on the Australian Securities Exchange recently, with the fund being a hedged version of the existing JPMorgan Global Research Enhanced Index (JREG) ETF, and it would seek positive alpha with a low tracking error, staying sector, style and region neutral.

Since November 2022, JP Morgan has released nine ETFs into the Australian market, with Australia and New Zealand chief executive Andrew Creber stating: “It has been a remarkable 12 months for our business as we grow our active ETF suite.

“The solutions we have brought to the market continue to demonstrate our best-in-class objective and look to address the local investors’ needs whether it be looking for equity income, bonds, core global equities or sustainable funds.”

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