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.
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.”