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JP Morgan Asset Management Launches Active Bond ETF Amid High Interest-Rate Environment

Published 10/13/2023, 12:00 AM
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JPM
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J.P. Morgan Asset Management, a subsidiary of JPMorgan Chase (NYSE:JPM) and one of the top ten ETF issuers in the U.S., has launched the JPMorgan Active Bond ETF (JBND) on NYSE Arca on Thursday. This move comes as investors grapple with substantial bond market volatility and a high interest-rate environment.

The new actively managed fixed-income ETF primarily targets a diversified portfolio of intermediate and long-term debt securities, with a particular emphasis on securitized debt. Bryon Lake from J.P. Morgan Asset Management Global ETF Solutions indicated that there is a strong demand for active fixed-income solutions to navigate these challenging conditions.

The JBND ETF employs a value-oriented approach emphasizing high-quality intermediate bonds to deliver investor value. Guided by Core Bond Portfolio Manager Richard Figuly, the fund seeks to outperform the Bloomberg US Aggregate Bond Index over a three to five-year cycle. Priced at 30 basis points, JBND leverages the expertise of J.P. Morgan Asset Management's GFICC division's seasoned portfolio managers including Justin Rucker, Andrew Melchiorre, and Edward Fitzpatrick III.

As of June 30, 2023, J.P. Morgan Asset Management oversees $2.8 trillion in assets. The firm is a global leader in asset management and part of JPMorgan Chase & Co., a leading financial services firm with $3.9 trillion in assets that offers investment banking and other financial services globally.

According to InvestingPro data, JPMorgan Chase has an impressive market cap of $424.32 billion USD, a low P/E ratio of 9.4, and a strong revenue growth of 12.14% LTM2023.Q2. This robust financial performance is backed by a consistent dividend growth of 5.0% LTM2023.Q2, demonstrating the firm's commitment to shareholder returns. JPMorgan has a history of maintaining dividend payments for 53 consecutive years, as noted by InvestingPro Tips, which reflects its financial stability and reliability for investors.

InvestingPro Tips also highlights that JPMorgan has been profitable over the last twelve months, with 9 analysts revising their earnings upwards for the upcoming period. This positive outlook, coupled with the company's position as a prominent player in the Banks industry, further enhances its appeal to investors.

The introduction of JBND on NYSE Arca underscores J.P. Morgan Asset Management's innovative approach to providing solutions for investors seeking active fixed-income strategies in challenging market conditions. For additional insights and tips, readers can explore InvestingPro, which offers a range of valuable investment tips and real-time metrics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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