JPM EM Local Bd Act UCITS ETF USD Dist

Issuer: JPMorgan ETF

Asset Class: Fixed Income

TER: 39bps

Trading Currency: GBP

Pays Income: False

Listing Date: 12 Mar 2025

Ticker: JLDO

ISIN: IE000BS9KP42

This actively managed fund offers exposure to local currency-denominated government bonds from emerging market countries, aiming to generate total return through strategic asset allocation. The investment team leverages extensive proprietary research to dynamically adjust country and currency exposures based on their macroeconomic outlook, seeking to capitalize on opportunities while managing the inherent risks of emerging markets. The strategy focuses on identifying countries with strong fundamentals, favourable yield curves, and attractive currency valuations, allowing for a flexible and high-conviction approach that can diverge significantly from its benchmark.

A key advantage of this active strategy is its ability to navigate the complex and often volatile landscape of emerging market debt more effectively than a passive, index-tracking product. By investing directly in local currency debt, the fund provides pure-play exposure to the economic performance and monetary policies of these developing nations. This can offer significant diversification benefits and the potential for higher yields compared to developed market sovereign bonds. The portfolio managers actively manage duration and credit risk, aiming to optimize the risk-return profile across different market cycles.

The product is designed for investors seeking higher income and capital appreciation potential from the fixed income portion of their portfolio. It is suitable for those with a higher risk tolerance who are comfortable with the volatility associated with emerging market currencies and sovereign credit. The fund can serve as a core or satellite holding to diversify a traditional bond portfolio, providing access to a specialized asset class managed by a team with deep experience in emerging market debt.