JP Morgan Asset Management has launched the JP Morgan Ultra-Short Municipal ETF (JMST), an actively managed fixed-income ETF that focuses on tax-exempt yield and invests in municipal securities with less interest rate sensitivity.
The strategy invests primarily in investment grade, ultra-short municipal bonds that are exempt from federal income tax. The fund employs a value-driven, bottom-up approach and seeks to maintain a target duration range of two years or less. Additionally, it can serve as a diversifier to a portfolio’s core exposure and the shorter duration can help to reduce volatility.
JMST leverages the expertise of JP Morgan’s Municipal Bond and Global Liquidity business, with over 145 dedicated investment professionals and 30 years of demonstrated results across market cycles. The team is led by co-portfolio managers, Rick Taormina and James Ahn.
“Investors have become wary of fixed income investments in a rising rate environment,” says Joanna Gallegos, US Head of ETFs at JP Morgan Asset Management. “JMST’s focus on low duration positions should help to mitigate interest rate risk, while potentially offering a higher yield than tax-exempt money market funds.”
JP Morgan Asset Management’s ETF suite now features 28 product offerings with over USD10 billion in assets under management. JP Morgan was awarded “Best New Alternatives ETF” for its JP Morgan Managed Futures Strategy ETF (JPMF) product and earned “Best New International/Global Fixed-Income ETF” for its JP Morgan Global Bond opportunities (JPGB) product at the fifth annual ETF.com Awards held in March 2018.