JP Morgan Asset Management (JPMAM) has expanded its range of ETFs with three actively managed Corporate Bond Research Enhanced Index ETFs and a fourth active equity research enhanced index ETF. All four funds are now traded on the SIX Swiss Exchange.
- EUR Corporate Bond Research Enhanced Index Ucits ETF [JREB]
- EUR Corporate Bond 1-5yr Research Enhanced Index Ucits ETF [JR15]
- USD Corporate Bond Research Enhanced Index UCITS ETF [JRUB]
- Global Emerging Markets Research Enhanced Index Equity (ESG) Ucits ETF [JREM]
The three new corporate bond ETFs JREB, JR15 and JRUB offer an alternative to passive investments in the corporate bond market.
The focus of actively managed corporate bond ETFs is to identify the most attractive opportunities on a risk-adjusted basis. As a result, investors are not unnecessarily exposed to uncompensated risks associated with purely passive funds.
The investment process is based on sound corporate credit research. Sectors and securities are ranked based on fundamental and relative value judgments.
The specialised team for investment-grade (corporate) corporate bonds is backed by 20 accomplished credit research analysts with an average of more than 15 years of experience. The team is led by Lisa Coleman, who has over 30 years of experience in the IG corporate bond market. She currently manages more than $50bn of ESG-affiliated IG portfolios. The investment process for the Corporate Bond Research Enhanced Index ETFs is also supported by nine quantitative research analysts.
The benchmark index of JREB is Bloomberg Barclay's Euro Aggregate Corporate (Total Return) Index. JR15 uses the Bloomberg Barclays Euro Aggregate Corporate 1-5 (Total Return) Index and for JRUB will use Bloomberg Barclay's US Corporate Investment Grade (Total Return) Unhedged Index. All three ETFs have a total expense ratio (TER) of 19 basis points.
JPMAM also complements the offering of actively managed Research Enhanced Index ETFs with a global emerging market ETF. As early as October 2018, active equities listed ETFs for European equities, global equities and US equities.
The benchmark index of JREM is the MSCI Emerging Market Index. The JREM has a TER of 30 basis points. It provides investors with an index-like portfolio combined with an information advantage from the insights of more than 30 research analysts from the Emerging Markets and Asia Pacific Equities team.
The investment team uses a variety of small active positions in emerging market equities, weighting analysts' names that are considered attractive, while underweighting unattractive stocks. The ETF seeks additional income from the index.