JP Morgan adds two new active fixed income ETFs in Europe

Jan 28th, 2025 | By | Category: Latest news

JP Morgan Asset Management (JPMAM) has unveiled two new actively managed fixed income ETFs in Europe, expanding its offering of euro-denominated bond strategies.

Travis Spence, Global Head of ETFs at JP Morgan Asset Management

Travis Spence, Global Head of ETFs at JP Morgan Asset Management.

The JPM Euro Aggregate Bond Active UCITS ETF (JEGG LN) and the JPM EUR Government Bond Active UCITS ETF (JEUG LN) are now listed on the London Stock Exchange, Deutsche Börse Xetra, Borsa Italiana, and SIX Swiss Exchange.

JEGG comes with an expense ratio of 0.30%, while JEUG is priced at 0.15%.

With these launches, JPMAM’s suite of actively managed fixed income UCITS ETFs grows to 13 funds, covering aggregate bond, corporate bond, government bond, high yield, ultra-short income, and sustainable fixed income exposures.

The firm projects significant growth in the fixed income ETF market, estimating global assets to reach $6 trillion by 2030, with active strategies accounting for $1.7 trillion.

Travis Spence, Global Head of ETFs at JP Morgan Asset Management, emphasized the firm’s focus on active fixed income management, stating: “The launch of JEGG and JEUG underscores 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.”

Both ETFs draw on JPMAM’s extensive Global Fixed Income, Currency, and Commodities (GFICC) platform, comprising over 300 fixed income professionals with more than 20 years of average experience. This team collaborates across sectors and regions to deliver diversified and dynamic fixed income strategies.

Euro Aggregate

JEGG builds on the success of JPMAM’s $17 billion Global Aggregate platform and its $200 million JPM Global Aggregate Bond Active UCITS ETF (JAGG LN), the first UCITS active global aggregate bond ETF, launched in October 2023.

JEGG aims to outperform the Bloomberg Euro Aggregate Index by investing in a diversified portfolio of euro-denominated fixed income securities, including government bonds, covered bonds, corporate bonds, and emerging market debt. The fund seeks multiple sources of alpha across the fixed income universe while maintaining a robust risk management framework.

The ETF is managed by Myles Bradshaw and Viren Patel, experienced portfolio managers with a strong track record in managing interest rate, credit, securitized, volatility, and foreign exchange risks. Bradshaw, who has been managing JPMAM’s Global Aggregate strategy since 2019, brings nearly 30 years of industry experience.

Euro Government

JEUG leverages JPMAM’s $46 billion Global Rates platform, targeting outperformance of the Bloomberg Euro Aggregate Treasury Total Return Index. The ETF actively invests in euro-denominated government and government-related debt securities, aiming to optimize risk-adjusted returns through dynamic portfolio adjustments.

The fund is managed by Séamus Mac Góráin and Kim Crawford, both seasoned professionals with extensive experience in government bond strategies. Mac Góráin, who heads JPMAM’s Global Rates team, has over 22 years of industry experience. Before joining JPMAM, he worked at the Bank of England, where he managed the UK’s foreign currency reserves and contributed to the Monetary Policy Committee’s inflation forecasts.

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