J.P. Morgan Asset Management (JPMAM) has launched a new fund that offers exposure to US dollar-denominated sovereign debt in emerging markets.
The strategy, dubbed JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB), has been created by the firm’s quantitative beta strategies team.
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The fund tracks the JPMorgan Emerging Markets Risk-Aware Bond Index, which checks liquidity and country risk.
The index depends on credit ratings to allocate risk and adopts an alternative weighting approach to offer better risk-adjusted returns to investors.
The vehicle is managed by the firm’s quantitative beta strategies co-portfolio managers Eric Isenberg and Niels Schuehle.
JPMAM US head of ETFs Joanna Gallegos said: “Fixed income ETFs continue to revolutionise investing by providing access to an often challenging asset class in a liquid, transparent and cost-effective vehicle. With JPMB, clients can gain exposure to emerging market debt, which is a growing component of global bond markets, and it can serve as a diversifier to a core bond portfolio.”
