JPM EUR HY BOND ACTIVE UCITS ETF DIST

Issuer: JPMorgan ETF

Asset Class: Fixed Income

TER: 45bps

Trading Currency: GBP

Pays Income: False

Listing Date: 17 Dec 2024

Ticker: JEEY

ISIN: IE000YSJPNV8

This actively managed fund is designed to provide investors with a high level of income and the potential for capital growth by investing primarily in a portfolio of European high-yield corporate bonds. The strategy leverages a research-intensive, bottom-up security selection process to identify undervalued opportunities and navigate the complexities of the sub-investment grade credit market. By not being constrained by a passive index, the portfolio managers can dynamically adjust holdings based on their assessment of credit fundamentals, market conditions, and relative value, aiming to outperform the broader European high-yield segment while carefully managing risk.

The investment process is driven by an experienced team of credit analysts and portfolio managers who conduct deep fundamental analysis on individual issuers. This involves a thorough evaluation of company balance sheets, cash flow stability, industry positioning, and overall management quality. This issuer-specific analysis is integrated within a broader macroeconomic framework to effectively manage duration, credit quality, and sector exposures. The flexibility inherent in this active approach allows the managers to overweight securities with strong prospects and underweight or completely avoid those with deteriorating credit profiles, which is a critical advantage in the often-volatile high-yield market.

This product is suitable for investors seeking to enhance the income potential of their portfolio and achieve diversification within their fixed-income allocation. It offers targeted exposure to the below-investment-grade European corporate debt market, which typically provides higher yields than government or investment-grade corporate bonds in exchange for higher credit risk. The active management overlay is intended to mitigate some of these inherent risks through diligent credit selection and continuous portfolio monitoring, with the goal of delivering superior risk-adjusted returns over a full market cycle compared to passive alternatives.