JP Morgan AM launches two new active fixed income UCITs ETFs
29 JAN, 2025
JP Morgan AM announced today the listing on the London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana and SIX Swiss Exchange of the active fixed income UCITS ETFs JPM Euro Aggregate Bond Active UCITS ETF (LSE ticker: JEGG) and JPM EUR Government Bond Active UCITS ETF (LSE ticker: JEUG).
The firm currently offers 13 actively managed fixed income UCITS ETFs, complementing its offering of active aggregate bond ETFs, corporate bonds, high yield, ultra-short income and sustainable fixed income.
JPM Euro Aggregate Bond Active UCITS ETF
JEGG is included in JPMAM's Global Aggregate platform of over 17 billion dollars and follows in the footsteps of JAGG - launched in October 2023 as the industry's first active global aggregate bond UCITs ETF. It aims to beat the Bloomberg Euro Aggregate Index Total Return EUR Unhedged. The JPMAM Global Aggregate strategy, first launched in 2009, seeks different sources of alpha in the fixed income universe, investing in a diversified portfolio of fixed income securities and sectors, including euro-denominated government bonds, covered bonds, corporate bonds and emerging market debt.
This ETF will be managed by Myles Bradshaw and Viren Patel and will have a TER of 30 basis points. Myles Bradshaw has nearly 30 years of experience managing interest rate, credit, securitization, volatility and exchange rate risks in global portfolios. He has been managing JPMAM's Global Aggregate strategy since 2019.
JPM EUR Government Bond Active UCITS ETF
JEUG is included in JPMAM's Global Rates platform of 46 billion dollars, and aims to beat the Bloomberg Euro Aggregate Treasury Total Return Index by actively investing in a portfolio of EUR-denominated government debt and securities related to government debt.
This ETF will be managed by Séamus Mac Góráin and Kim Crawford and will have a TER of 15 basis points. The Global Rates strategy of JPMAM was first launched in 2008. Séamus Mac Góráin, who leads the Global Rates team at JPMAM, has over 22 years of experience in the industry. Before joining JPMAM, he worked for the Bank of England managing the UK's foreign exchange reserves and developing the Monetary Policy Committee's inflation forecast. He has been managing the Global Rates strategy at JPMAM since 2019.
The management teams of JEGG and JEUG will leverage the full strength of JPMAM's Global Fixed Income, Currency, Commodities and Global Liquidity (GFICC) platform, working closely with over 300 fixed income professionals operating in the world's major markets, with an average experience of over 20 years. The extensive track record of JPMAM's team of sector specialists is a key advantage contributing to a diversified and successful global fixed income strategy.
Outlook for fixed income ETFs
The manager forecasts that the global fixed income ETF market will grow to $6 trillion by 2030; while the active fixed income ETF market will reach $1.7 trillion.
Taking into account the additional benefits that ETFs provide to investors, JPMAM believes that active fixed income ETFs will be a key driver for the ETF industry in general.
The launch of JEGG and JEUG expands our range of active fixed income UCITS ETFs to 13 ETFs, underlining our commitment to providing investors in Europe with innovative solutions that leverage the full potential of our global fixed income capabilities. We believe these products will offer investors a compelling opportunity to access active management in fixed income, backed by the expertise and resources of our team.
Travis Spence, Global Head of ETFs at JP Morgan AM
