A Flexible, 'Best Ideas' Bond ETF Strategy

J.P. Morgan Asset Management has launched its second actively managed fixed-income bond exchange traded fund that could freely and quickly adapt to any changes in the market environment.

J.P. Morgan recently rolled out the JPMorgan Global Bond Opportunities ETF (BATS: JPGB), which comes with a 0.55% net expense ratio.

The active bond ETF is managed by J.P. Morgan Asset Management’s Managing Directors Robert Michele, Iain Stealey, and Nicholas Gartside.

“J.P. Morgan is uniquely positioned to offer an ETF that provides access to some of the most sophisticated fixed income investment capabilities available to investors,” Bob Deutsch, U.S. Head of ETFs for J.P. Morgan Asset Management, said in a note. “Our network of global experts and research analysts can scour the globe for opportunities in any market cycle, and their extensive experience with this type of investing is unrivaled.”

JPGB will try to provide total return by investing across sectors in developed and emerging markets around the world.

“The fund is flexible and opportunistic,” according to the prospectus sheet.

The management team has broad discretion to shift the fund’s exposure to strategies, sectors, countries or currencies based on changing market conditions and its view of the best mix of investment opportunities. Managers will select securities based on their analysis of individual investments and broader economic conditions in individual countries, regions and the world, shifting from conservative to higher risk opportunities based on prevailing market conditions.

“The strategy takes a benchmark agnostic approach and seeks to take advantage of opportunities across market sectors, credit quality, countries and currencies, extending beyond traditional fixed income investments,” according to a note. “It captures J.P. Morgan’s highest conviction ideas in a flexible strategy that identifies opportunities in response to evolving market conditions.”

The active ETF will include at least 40% of assets in countries other than the U.S and will hold at least 25% of assets in investment-grade debt. The fund will also try to maintain a duration of eight years or less.

For more information on new fund products, visit our new ETFs category.

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