J.P. Morgan Asset Management is expanding its range of active bond UCITS ETFs

Proven investment platforms and expertise in the various market segments enable diversified active bond strategies

As of today, the two active bond ETFs JPM Euro Aggregate Bond Active UCITS ETF (Ticker: JEGG) and JPM EUR Government Bond Active UCITS ETF (Ticker: JEUG) can be traded on the Deutsche Börse Xetra, the London Stock Exchange, the Borsa Italiana and the SIX Swiss Exchange. J.P. Morgan Asset Management is thus expanding its offering to 13 actively managed bond ETFs in the aggregate bond, corporate bond, high yield, ultra-short income and sustainable bond ETF segments, and now also government bonds.

JPM Euro Aggregate Bond Active UCITS ETF (JEGG) is based on the expertise of J.P. Morgan Asset Management’s USD 17 billion Global Aggregate platform. Established in 2009, this platform enables a diverse range of alpha sources to be tapped into across the bond universe, with a diversified portfolio of government, corporate and emerging market bonds. JEGG follows in the footsteps of JAGG, launched in October 2023, the first active global aggregate bond ETF in a UCITS format. It aims to outperform the Bloomberg Euro Aggregate Index Total Return EUR Unhedged at a cost of 30 basis points.

Managers are Myles Bradshaw and Viren Patel. Myles Bradshaw has around 30 years of experience managing interest rate, credit, securitisation, volatility and FX risks in global portfolios and has led J.P. Morgan Asset Management’s Global Aggregate strategy since 2019.

JPM EUR Government Bond Active UCITS ETF (JEUG) is based on J.P. Morgan Asset Management’s Global Rates platform, which was launched in 2008 and now manages $46 billion. The strategy aims to outperform the Bloomberg Euro Aggregate Treasury Total Return Index by actively investing in a portfolio of euro-denominated government and government-related securities. The expense ratio is 15 basis points. The ETF is managed by Séamus Mac Góráin and Kim Crawford. Séamus Mac Góráin has over 22 years of industry experience and has led J.P. Morgan Asset Management’s Global Rates strategies since 2019. Before joining J.P. Morgan’s investment bank in 2010, he worked for the Bank of England, where he managed the UK’s foreign exchange reserves and prepared the Monetary Policy Committee’s inflation forecasts.

The management teams of JEGG and JEUG draw on the global resources and expertise of J.P. Morgan Asset Management’s Global Fixed Income, Currency and Commodities (GFICC) platform, which manages more than $2 trillion in client assets. More than 300 fixed income professionals worldwide, with an average of over 20 years of experience, bring a broad expertise across the various market sectors, from which the diversified global bond strategies benefit.

According to Travis Spence, Global Head of ETFs at J.P. Morgan Asset Management, the ever-broader range of active bond UCITS ETFs is strengthening the desire of investors in Europe for innovative solutions that exploit the full potential of global bond markets. Spence emphasises that providing investors with compelling solutions is key.

Active fixed income ETFs to drive the overall ETF industry

J.P. Morgan Asset Management predicts that the global market for bond ETFs will grow to $6 trillion by 2030, of which the market for active bond ETFs could reach $1.7 trillion. Since active management has proven its strengths particularly in the bond segment, J.P. Morgan Asset Management expects that combining these advantages with the benefits of the ETF vehicle will be an important driver for the entire ETF industry.