Industry Updates

JP Morgan AM to shut active ultrashort China bond ETF

JCST ‘has not attracted sufficient assets’

Theo Andrew

China markets

JP Morgan Asset Management (JPMAM) is to close its ultrashort China bond ETF just 18 months after launching.

In a letter to shareholders, the asset manager said the JPM RMB Ultra-Short Income UCITS ETF (JCST) will close on 7 December as it “has not attracted sufficient assets”.

JCST houses $29m assets under management (AUM), as of 3 November.

The actively-managed ETF was launched alongside the $113m JPM BetaBuilders China Aggregate Bond UCITS ETF (JCAG) in March 2022.

It was part of its ultrashort duration ETF range, comprising JPMorgan USD Ultra-Short Income UCITS ETF (JPST), the JPMorgan EUR Ultra-Short Income UCITS ETF (JEST) and the JPMorgan GBP Ultra-Short Income UCITS ETF (JGST).

JPMAM declined to comment on the closure.

Yields on short-term Chinese government bonds have risen in recent weeks despite its central bank’s effort to stimulate the economy with two interest rate cuts.

Meanwhile, its troubled property sector is placing more strain on the economy and could face more debt defaults over the next six months.

Despite the closure, JPMAM continues to expand its active ETF range and last month launched the JPMorgan Active Global Aggregate Bond UCITS ETF (JAGG).

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