J.P. Morgan Asset Management (JPMAM) is excited to announce the listings of JPM Euro Aggregate Bond Active UCITS ETF (LSE ticker: JEGG) and JPM EUR Government Bond Active UCITS ETF (LSE ticker: JEUG) on the London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana and SIX Swiss Exchange.
The firm now offers 13 actively managed fixed income UCITS ETFs, complementing its existing aggregate bond, corporate bond, high yield, ultra-short income and sustainable fixed income active ETF offering.
JEGG, which builds on JPMAM’s USD17 billion+ Global Aggregate platform and follows in the footsteps of JAGG which launched in October 2023 as the industry’s first UCITS active global agg bond ETF, will seek to outperform the Bloomberg Euro Aggregate Index Total Return EUR Unhedged.
JPMAM’s broader Global Aggregate strategy, which first launched in 2009, targets multiple sources of alpha across the fixed income universe, investing in a diversified portfolio of fixed income securities and sectors, including EUR denominated government bonds, covered bonds, corporate bonds, and emerging market debt. The ETF will be managed by Myles Bradshaw and Viren Patel and have a Total Expense Ratio of 30 basis points. Myles Bradshaw has nearly 30 years of experience managing interest rate, credit, securitized, volatility and foreign exchange rate risks in global portfolios and has been managing JPMAM’s Global Aggregate strategy since 2019.
JEUG, which builds on JPMAM’s USD46 billion Global Rates platform, will seek to outperform the Bloomberg Euro Aggregate Treasury Total Return Index by actively investing in a portfolio of EUR denominated government and government related debt securities. The ETF will be managed by Séamus Mac Góráin and Kim Crawford and have a Total Expense Ratio of 15 basis points. JPMAM’s broader Global Rates Strategy was first launched in 2008. Séamus Mac Góráin, who heads up JPMAM’s Global Rates team, has over 22 years of industry experience. Before joining JPMAM, he worked for the Bank of England managing the UK’s foreign currency reserves and producing the Monetary Policy Committee’s inflation forecast. He has been managing JPMAM’s Global Rates strategy since 2019.
Both JEGG and JEUG’s portfolio managers will leverage the full strength of JPMAM’s Global Fixed Income, Currency and Commodities (GFICC) platform, collaborating closely with 300+ fixed income professionals operating in every major market around the world, with over 20 years of average experience. The breadth of expertise within JPMAM’s sector specialist team is a key advantage and something that JPMAM believes contributes to a successful diversified global fixed income strategy.
Travis Spence, Global Head of ETFs at J.P. Morgan Asset Management says: “The launch of JEGG and JEUG expands our suite of active fixed income UCITS ETFs to 13 ETFs, underscoring our commitment to providing investors in Europe with innovative solutions that harness the full potential of our global fixed income capabilities. We believe these products will offer investors a compelling opportunity to access active management in the fixed income space, backed by the deep expertise and resources of our team.”
By 2030, JPMAM forecasts that the global fixed income ETF market will grow to USD6 trillion, while the active fixed income ETF market is expected to reach USD1.7 trillion. The firm writes that active management is not only proven but preferred in fixed income, and with the additional benefits that ETFs provide investors, JPMAM believes that active fixed income ETFs will be a key driver for the overall ETF industry.
