JPMAM unveils GSS bond strategy

Targeting bonds between one and 10 years of maturity

J.P. Morgan Asset Management has launched a green social sustainable fixed income strategy in line with the International Capital Markets Association (ICMA) principles.

The strategy is available as a Sicav – the Green Social Sustainable Bond Fund – and an ETF – the Green Social Sustainable Bond Ucits ETF. Where green bonds typically have longer duration, this strategy offers a lower structural duration, targeting bonds between one and 10 years of maturity. It is therefore benchmarked against Bloomberg’s new Global Aggregate Green Social Sustainability Bond 1-10 year index.

It is managed by Stephanie Dontas, Ed Fitzpatrick and Usman Naeem and draws on insight from the global fixed income team’s 70+ analysts, who use a proprietary framework to verify the alignment of each bond issuance to ICMA standards and conduct fundamental, quantitative and technical research.

Massimo Greco, head of EMEA funds at J.P. Morgan Asset Management, said: “With bonds increasingly coming back in favour as part of a diversified portfolio, we’re delighted to be able to offer an actively managed and diversified core fixed income strategy that’s been designed with a great deal of care and consideration, as the strategy seeks to explicitly align with environmentally and socially beneficial projects.”

The total expense ratio (TER) of the fund will be 50 basis points and TER of the Ucits ETF will be 32 basis points. The ETF has been listed on Euronext Dublin, the London Stock Exchange, Xetra Deutsche Borse, Börsa Italia and SIX.