JP Morgan Asset Management (JPMAM) has taken significant steps to expand its active exchange-traded fund (ETF) offerings by launching Europe9;s first actively managed local currency bond ETF, alongside the introduction of its Paris-aligned global equity strategy. On March 12, 2025, JPMAM unveiled the JPM Emerging Markets Local Currency Bond Active UCITS ETF (JLOC) and the JPM Global Emerging Markets Research Enhanced Index Equity SRI Paris Aligned Active UCITS ETF (JSEM) on several stock exchanges, including the London Stock Exchange, Deutsche Borse, Borsa Italiana, and SIX Swiss Exchange.
The JLOC aims to outperform established benchmarks, namely the JPMorgan Government Bond Index and the Emerging Markets Global Diversified Index. The ETF is steered by experienced managers Didier Lambert, Julien Allard, and Ishitaa Sharma, who are supported by more than 70 investment professionals dedicated to the firm9;s $43 billion Emerging Market Debt (EMD) platform. Leveraging its existing local currency debt strategy launched back in 2008, the JLOC offers investors enhanced yield potential along with diversification, benefiting from various idiosyncratic returns inherent to local currency bonds.
With competitive total expense ratios (TER) set at 0.45% for the JLOC and 0.30% for the JSEM, these ETFs are positioned to cater to investors seeking both active management and sustainability. The equity ETF, JSEM, is benchmarked against the MSCI Emerging Market SRI EU Paris Aligned Benchmark Overlay ESG Custom index, thoughtfully targeting companies aligned with the Paris Agreement’s environmental goals. JSEM adopts a bottom-up stock selection process—favoring securities predicted to outperform and opting to underweight those deemed overvalued.
Travis Spence, the global head of ETFs at JPMAM, expressed enthusiasm for the new offerings: “We are excited to introduce JLOC, the first active fixed income ETF of its kind, which is uniquely positioned for investors eager to gain exposure to local currency bonds from the thriving markets of the developing world. Our goal is to provide opportunities for generating positive, risk-adjusted returns through proactive management. Meanwhile, JSEM diversifies and expands our active equity SRI options within the emergent markets, complementing our existing strategies including JSEU, JSEG, and JSEE.”
This latest development is part of JPMAM's broader initiative to cultivate its active ETF suite, marking beneficial steps for investors interested in both fixed-income securities and sustainable investment strategies. Notably, the firm extended its active fixed-income product range earlier this year by launching euro aggregate and government bond ETFs.
Investors are increasingly focused on not just the financial returns their portfolios generate but also the impact these investments have on society and the environment. By aligning its strategies with global sustainability efforts, JPMAM is positioning itself at the forefront of the investment industry’s transition toward more responsible investment practices.
From fostering sustainable practices through responsible investing to enhancing yields via active management, JPMorgan Asset Management reflects and meets the modern investor's demands for both performance and positive impact. The launch of the new ETFs is poised to attract investment interests among both institutional investors and retail clients seeking diversified exposure to high-growth segments of the market.
Spence concluded his remarks by emphasizing the importance of this new chapter for JPMAM: “The introduction of these ETF products is part of our commitment to delivering innovative solutions for our clients, as we strive to support them not only financially but also with respect to their long-term sustainability objectives.”