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JPMAM debuts fixed income multi-factor ETF in Europe


JPMAM launches its first fixed income multi-factor ETF in Europe

JPMAM launches its first fixed income multi-factor ETF in Europe

J.P. Morgan Asset Management (JPMAM) has today launched the JPMorgan Global High Yield Corporate Bond Multi-Factor UCITS ETF (JGHY), its first fixed income multi-factor ETF in Europe.

Designed to track the JPMAM Global High Yield Multi-Factor index, which selects issuers based on metrics such as the quality of their balance sheet, current valuations and recent price momentum, JGHY will seek to invest in a combination of securities to provide a yield comparable to traditional debt-weighted bond indices.

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The index provides exposure to both developed and emerging corporate high yield markets but will emphasise exposure to securities that display strong correlation with its metrics.

Available on the London Stock Exchange, Deutsche Börse Xetra and the Borsa Italiana, JGHY will have a total expense ratio of 0.35%.

Yazann Romahi, chief investment office of quantitative beta solutions at JPMAM, said: “We believe we are reaching a tipping point for factor investing in fixed income.

“The investment industry has, for the most part, tended to gravitate towards factor investing within cash equity markets and long-short alternative futures strategies, where data has been more readily available.

“Based on our research, factors like value, quality and momentum are asset class agnostic and very much alive and present in credit markets.”

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Olivier Paquier, head of ETF distribution EMEA, added: “In response to the growth of interest in fixed income factor investing and the ongoing demand for fixed income ETFs, we have come up with a solution which offers liquid exposure to the yield and diversification benefits of high yield markets, along with the potential for more attractive risk-adjusted returns.

“JGHY seeks to offer investors thoughtful exposure to the yield and return potential of global high yield, following several years of innovative research by our QBS team.”



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