JP Morgan Asset Management has broadened its ESG ETF lineup with the launch of an actively-managed bond ETF.
The JPMorgan Green Social Sustainable Bond Ucits ETF (JGRN) is listed on the Euronext Dublin, London Stock Exchange, Deutsche Boerse, Borsa Italiana and the Six Swiss Exchange with a total expense ratio of 0.32%.
The SFDR Article 9 strategy will track the Bloomberg Global Aggregate Green Social Sustainability Bond 1-10 year index.
It will target social, green and sustainable bonds from supernational issuers, as well as corporates and sovereigns. The strategy will source bonds from both developed and emerging markets.
To track the environmental impact of the strategy, the bonds within the index will be linked to the International Capital Markets Association (Icma).
JPMAM will use its own sustainability framework to determine green or social bond eligibility, also based on International Capital Markets Association principles on sustainability. Eligible bonds must outline that their proceeds will be entirely designated for market-accepted green or social activities, and the issuer must outline the decision-making process it follows to determine the eligibility of green or social projects.
Amongst the reporting requirements, issuers must file annual reports confirming the project’s ongoing compliance with green and social principles.
This strategy will be run in parallel to a mutual fund which shares the same strategy, although it has a higher expense ratio – 0.50%.
Massimo Greco, head of Emea funds at JPMAM, said: “With bonds increasingly coming back in favour as part of a diversified portfolio, we are delighted to be able to offer an actively-managed core fixed income strategy.
“JGRN seeks to explicitly align with environmentally and socially beneficial projects.”
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