JPMorgan Global High Yield Corporate Bond Multi-Factor UCITS ETF (Acc)

Issuer: JPMorgan ETF

Asset Class: Fixed Income

TER: 35bps

Trading Currency: GBP

Pays Income: False

Listing Date: 11 Feb 2020

Ticker: JGYH

ISIN: IE00BKKCKJ46

This actively managed fund provides exposure to the global high-yield corporate bond market through a sophisticated, rules-based investment strategy. Rather than following a traditional market-capitalisation weighted index, it seeks to deliver enhanced returns by systematically applying factor-based screens to its security selection process. This approach is designed to identify bonds with more attractive risk-return profiles, moving beyond simple credit beta to uncover distinct drivers of performance within the sub-investment grade debt universe. The core objective is to outperform a broad global high-yield benchmark over the long term.

The investment methodology is centered on two key factors: value and quality. The 'value' screen aims to identify bonds that appear attractively priced relative to their underlying fundamentals, offering potentially higher compensation for their level of credit risk. Concurrently, the 'quality' screen assesses the financial strength and stability of the issuing corporations. This involves analyzing metrics that point to a company's resilience and ability to service its debt, with the goal of tilting the portfolio towards more durable issuers and avoiding those with deteriorating credit profiles. By combining these two factors, the strategy aims to build a more robust portfolio than a simple passive approach might achieve.

This product is suitable for investors looking for a strategic allocation to high-yield bonds, offering the potential for higher income and total returns. The factor-based approach intends to provide a 'smarter' way to access the asset class, potentially enhancing returns while managing downside risk. As an accumulating share class, any income generated by the underlying bonds is automatically reinvested, which is ideal for those focused on long-term capital appreciation.