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JP Morgan unveils active global aggregate bond ETF

EditorAmbhini Aishwarya
Published 10/18/2023, 08:20 PM
JPM
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JP Morgan has launched the Active Global Aggregate Bond UCITS fund, a novel addition to its fixed-income exchange-traded funds (ETFs). The announcement was made on Wednesday. This active ETF is a part of JP Morgan's global aggregate bond strategy, which manages over $11 billion in assets.

The newly unveiled fund operates across 25 local currency markets and aligns with the Bloomberg Global Aggregate Index Total Return USD Unhedged index. It aims to exploit factors impacting bond prices and market movements, offering a chance to guide the ETF towards high-quality issuers rather than the largest ones.

The bank sees this fund as suitable for active management due to the complexity of global aggregate transactions. Its strategy signifies a core bond portfolio with low volatility, limited drawdowns, no market bias, and a process that has stood the test of time. The global aggregate bond strategy now includes 18 fixed income ETFs, half of which are active.

The JAGG ETF was launched in London on Wednesday. Utilizing both bottom-up and top-down strategies, it targets long-term outperformance after fees. The management team comprises Linda Raggi, who has spent 21 years at JP Morgan, Myles Bradshaw with four years at JP Morgan and prior experience at Amundi and Pimco, Iain Stealey with 15 years at JP Morgan, and a large research team.

The team aims to capitalize on economic and market cycles and central bank actions that impact government and corporate securities. Travis Spence, head of EMEA ETF distribution at JP Morgan, highlighted these capabilities.

JAGG is classified as Article 8 under EU SFDR regulation. This classification ensures stable bond beta while adjusting sector allocation to favor cheaper securities and underweight expensive ones. This launch marks the industry's first UCITS active global agg bond ETF.

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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