JP Morgan Asset Management (JPMAM) has launched an actively-managed green, social and sustainable 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 (TER) of 0.32%.
JGRN will be benchmarked against the Bloomberg Global Aggregate Green Social Sustainability Bond 1-10 year index, targeting green, social and sustainable bonds from corporate, sovereign and supernational issuers across developed and emerging markets.
The ETF was launched alongside a mutual fund which has the same strategy and a TER of 0.50%.
All of the bonds in the index will be linked to the International Capital Markets Association (ICMA) which tracks investments against environmental projects in a bid to improve insight into their impact.
JGRN is classified Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
Stephanie Dontas, Ed Fitzpatrick and Usman Naeem will manage the ETF alongside JPMAM’s sustainable investment team which will test each bond against ICMA’s framework.
With 1-10 years duration, JPMAM said JGRN offers a lower structural duration than most typical green bonds.
Green, social and sustainable bond markets issuance hit nearly $1trn in 2021, according to JPMAM/
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.”
It is the latest launch from JPMAM since it unveiled the JPMorgan Carbon Transition China Equity (CTB) UCITS ETF (JCCT) last December.