Jupiter AM announces the Jupiter Global Government Bond Active UCITS ETF – GBP Hedged

Jupiter AM : The new Jupiter Global Government Bond Active UCITS ETF – GBP Hedged (ISIN: IE000U00VD47) was admitted to trading on the London Stock Exchange today.

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Matthew Beesley, CEO of Jupiter AM

This investment vehicle aims to offer investors access to an actively managed global bond portfolio, targeting a mix of income and capital growth over the medium to long term.

Unlike most ETFs, which passively track an index, this fund uses active management, which aims to achieve superior performance through discretionary choices made by the managers.

Investment Strategy and Portfolio Composition

As per the prospectus, the fund will invest at least 70% of its net assets in a basket of bonds issued or guaranteed by sovereign (state) and supranational entities. The latter are organisations controlled by several states, such as the European Investment Bank (EIB) and the International Bank for Reconstruction and Development (IBRD).

The remaining 30% of the portfolio may be invested in other types of fixed-income securities, including corporate bonds, securitisations, convertible bonds and money market instruments.

The Management Approach: Top-Down and Bottom-Up

Securities will be selected through a two-pronged analysis:

1. Top-Down Analysis: Managers will assess the global macroeconomic outlook to define strategic portfolio choices, in particular duration (the sensitivity of the portfolio to changes in interest rates) and positioning along the yield curve. This analysis will also determine exposure to key risk factors, such as interest rates, credit spreads and currencies.
2. Bottom-Up Analysis: Complementing the macro view, fundamental research will be conducted on individual issuers, whether countries or quasi-sovereign entities, to select the most attractive securities.

Benchmark and Duration

The fund uses the Bloomberg Global Aggregate Treasuries TR Index (GBP Hedged) as its benchmark solely for the purpose of monitoring duration. Under normal market conditions, the effective duration of the fund’s portfolio will fluctuate within a range of plus or minus 3 years relative to that of the benchmark.

It is important to note that the fund does not replicate the index and may invest in securities not included in it. As a result, its returns may deviate significantly from those of the benchmark, either positively or negatively, due to active management decisions.

Currency Aspects and Hedged Category

The fund’s base currency is the US dollar (USD).

Investor Summary

The Jupiter Global Government Bond Active UCITS ETF – GBP Hedged is designed for investors seeking exposure to the global sovereign and supranational bond market, combining geographical diversification with the potential benefits of active management.

Source : ETFWorld.co.uk