JP Morgan Asset Management has launched an actively managed green social sustainable bond strategy in the form of a SICAV fund and an ETF.
The JPMorgan Green Social Sustainable Bond fund and JPMorgan Green Social Sustainable Bond UCITS ETF are benchmarked against Bloomberg's Global Aggregate Green Social Sustainability Bond 1-10 Year index.
Investors will have exposure to "high quality" core exposure to green, social and sustainable bonds from corporate, sovereign and supranational issuers across developed and emerging markets, the firm said.
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All bonds in the strategy will be linked to sustainable activities in line with the principles set by the International Capital Markets Association (ICMA) and qualify as sustainable investments under the EU's SFDR. The funds will be classified as Article 9.
The strategy will be managed by Stephanie Dontas, Ed Fitzpatrick and Usman Naeem, who will be supported by JPMAM's sustainable investment team and over 70 analysts within the firm's global fixed income, currencies and commodities (GFICC) group.
JPMAM said GFICC analysts will verify the alignment of each bond issuance to ICMA standard and conduct rigorous fundamental, quantitative and technical research. The strategy will target bonds between 1-10 years of maturity.
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Massimo Greco, head of EMEA funds at JPMAM, said: "We are delighted to be able to offer an actively managed and diversified core fixed income strategy that has 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 SICAV's C-share class will be 50 basis points and TER of the UCITS ETF will be 32 basis points. The ETF has been listed on the London Stock Exchange and other European exchanges.
