JPMorgan Asset Management (JPMAM) has announced the launch of two more active ETFs, including the addition of a second fixed income ETF in the firm’s Australian lineup.
The JPMorgan Global Bond Active ETF (Managed Fund) (JPGB) is listed on Cboe Australia and leverages the same strategy as the JPMorgan Global Bond Fund (mutual fund), offering local investors the opportunity to add duration to a bond portfolio.
“With inflation starting to cool and growing signs that global central banks are approaching the end of their hiking cycles, this is generally a favourable environment for quality fixed income assets,” said Mark Carlile, head of wholesale, Australia and New Zealand.
Mr Carlile said that JPGB invests at least 80 per cent in investment grade bonds, overlaid by a disciplined risk management strategy.
“The portfolio management team has the ability to tap into a diverse range of alpha sources by investing across countries and sectors providing investors with quality fixed income and active management in uncertain markets,” he added.
Meanwhile, the JPMorgan Global Research Enhanced Index Equity Active ETF (Managed Fund) (Hedged) (JRHG) listed on the ASX last month.
JPMAM explained that JRHG is a hedged version of its existing JPMorgan Global Research Enhanced Index (REI) strategy (JREG) which seeks positive alpha at low tracking error, staying sector, style and region neutral.
“We’ve listened to our clients and their feedback on how they wish to better manage currency exposures and we’re delighted to be able to provide them with a hedged version to address those needs,” Mr Carlile said.
Since launching its first active ETFs on the ASX in November last year, JPMAM’s local lineup has grown to now include a total of 11 ETFs.
“It has been a remarkable 12 months for our business as we grow our active ETF suite,” said Andrew Creber, Australia and New Zealand chief executive officer.
“The solutions we have brought to the market continue to demonstrate our best-in-class objective and look to address the local investors’ needs whether it be looking for equity income, bonds, core global equities or sustainable funds.
“This is the advantage of investing with a global active asset manager – our size, scale and global reach enable us to offer local investors access to our high-conviction global solutions at competitive fees.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.