In London, it’s raining bonds

by , 12th June 2018

Today’s new ETF listings from around the world

London

JP Morgan lists four bond ETFs

JP Morgan is listing four new bond ETFs on the London Stock Exchange:

  • JPMorgan ETFs (Ireland) ICAV – GBP Ultra Short Income UCITS ETF (JGST)
  • JPMorgan ETFs (Ireland) ICAV – EUR Ultra Short Income UCITS ETF (JEST)
  • JPMorgan ETFs (Ireland) ICAV – BetaBuilders UK Gilts 1-5yr UCITS ETF (JG15)
  • JPMorgan ETFs (Ireland) ICAV – BetaBuilders US Treasury Bond 1-3yr UCITS ETF (JU13)

JEST and JGST will offer pound sterling and euro versions of the already-listed JPM USD Ultra Short Income UCITS ETF (JPST). Like JPST, both will be actively managed and hoover up short duration bonds across investment-grade corporate and government debt. Both will run TERs of 0.18%.

“[Asset allocators have] found they can capture 82% of the US Aggregate Bond Index yield with only 8% of the duration. In a rising rates environment, employing strategies such as these can help with monitoring and controlling duration,” Bryon Lake, Head of International ETFs at JP Morgan, said in a press release that explained the listings.

JG15 and JU13 will form part of JP Morgan’s “BetaBuilder range”, marketed as low-cost “building block” ETFs for common exposures (a bond equivalent of plain vanilla, so to speak). The two funds will provide gilt and t-bill complements to JP Morgan’s already-listed JPM BetaBuilders Eur Govt Bond 1-3yr UCITS ETF (JE13). Both will run TERs of 0.10%, which will partly be achieved by tracking in-house indexes.

Franklin Templeton also lists four actively managed bond funds…

Franklin Templeton is also listing four new bond ETFs on the London Stock exchange:

  • Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF (FLUC, FRUC)
  • Franklin Liberty Euro Short Maturity UCITS ETF (FRXE, FLES)

FLUC and FRUC will offer US dollar and pound sterling exposure to the same fund. Both also appear to be close cousins of the US-listed FLCO, but in the European ICAV structure. FLUC and FRUC will be actively managed and combine top-down analysis for sector allocation with bottom-up analysis to pick individual bonds. While they have a US dollar investment objective, the funds appear to be able to invest 15% of their assets in non-USD bonds. And while their investment objective focuses on investment grade bonds, they can invest up to 20% in collateralised debt obligations. The TERs will be 0.35%.

FRXE and FLES offer pound sterling and euro exposure to the same fund. They will invest in euro-denominated short-term bonds. They can also invest up to 20% of their assets in CDOs and CLOs.

CORPORATE ACTION

Lyxor changes tickers on Malaysian ETF…?

Lyxor appears to be changing its Malaysian ETF. What was previously known as the Lyxor MSCI Malaysia UCITS ETF USD (MALD, MALL) and synthetically tracked the MSCI Malaysia Index, is being relisted with the same name under new tickers (MALU, MALX). We are not quite clear what is going on.

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