JP Morgan Asset Management is set to launch three fixed income ETFs in Europe as part of the group’s first wave of ETF listings in the region.
The new quantitatively-managed strategies will be JPM AM’s first fixed income ETFs in Europe, which come after increasing demand from investors.
This come hot-on-the-heels of the asset manager making a wave of hires to further bolster its overall efforts in the ETFs market.
'Sophisticated investors, across Europe, are saying they want to see innovation in the fixed income arena whether that be our beta builder, smart beta and/or active capabilities,' Bryon Lake, international head of ETFs at JPM AM said.
The first of the new strategies is the JPMorgan ETFs (Ireland) ICAV – USD Emerging Markets Sovereign Bond UCITS ETD (JPMB), which will track the results of a newly-created bond index, JPM Emerging Market Risk-Aware Bond Index.
This provides exposure to US dollar-denominated sovereign debt across emerging markets. The strategy will be overseen by Niels Schuehle and Eric Isenberg.
The second approach is the JPMorgan ETFs (Ireland) ICAV – USD Ultra Short Income ETF (JPST), which will have exposure to very short maturity bonds and debt instruments across investment-grade corporate bonds and government debt.
The ETF targets a portfolio duration of less than one year while investing across sectors. The strategy will be managed by a team of five, led by David Martucci, global head of JP Morgan global liquidity managed reserves team and portfolio manager.
The third approach, the JPMorgan ETFs (Ireland) ICAV – BetaBuilders Eur Govt Bond 1-3yr UCITS ETF (JE13), will aim to track the JP Morgan EMU Government Bond 1-3 Year Index.
In October 2017, JPM AM unveiled its first ETFs targeted at European clients, including the JPM Equity Long-Short UCITS ETF and the JPM Managed Futures UCITS ETF.
The new ETFs will list on the London Stock Exchange on 22 February, while further European listings will follow shortly after, the group announced.