JP Morgan ETF lists one new Bond ETF on LSE

JP Morgan ETF lists one new Bond ETF on London Stock Exchange

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By ETFWorld.co.uk

JPM BetaBuilders China Aggregate Bond UCITS ETF – USD Hedged (dist)

Objectives and Investment Policy

Investment Objective: The Sub-Fund seeks to provide returns that correspond to those of its Index.

Investment Policy: The Sub-Fund pursues a passively managed strategy.

The Sub-Fund aims to track the performance of the Index as closely as possible, regardless of whether the Index level rises or falls, while seeking to minimise as far as possible the tracking error between the Sub-Fund’s performance and that of the Index.

The Index is comprised of CNY-denominated fixed rate bonds that have been issued by the PRC government, PRC government-related banks (known as “policy banks” such as the China Development Bank and the Agricultural Development Bank of China) and investment-grade PRC local authorities, agencies and corporate issuers.

In order to seek to achieve the Sub-Fund’s investment objective, the Investment Manager will aim to replicate the Index by investing in Index Securities and issues comprising the Index. As far as possible and practicable, the Investment Manager will aim to invest in issuers in a similar proportion to that of the Index. It may not be possible for the Sub-Fund to invest in every Index Security and the Sub-Fund may invest in bonds not in the Index (but with the same characteristics and risk profile as the Index Securities) of issuers comprising the Index. As a result, the Sub-Fund may only hold a certain sub-set of Index Securities.

Although the Index is generally well diversified, due to the nature of the market which the Index reflects, it may have a higher concentration in certain constituents at any one time. In particular, in order for the Sub-Fund to track the Index accurately, the Sub-Fund will make use of the increased diversification limits available under Regulation 71 of the UCITS Regulations. These limits permit the Sub-Fund to hold positions in individual constituents of the Index issued by the same non-governmental issuer of up to 20% of the Sub-Fund’s Net Asset Value and up to 35% of the Sub-Fund’s Net Asset Value in one particular non-governmental issuer.

The Sub-Fund may, for efficient portfolio management purposes, use financial derivative instruments.

The Sub-Fund will invest in assets denominated in CNY and currency exposure will not typically be hedged.

USD is the base currency of the Sub-Fund.

This Share Class seeks to minimise the effect of currency fluctuations between the currency of certain (but not necessarily all) assets of the Sub-Fund and the Reference Currency of this Share Class (USD).

Index : Bloomberg China Treasury + Policy Bank + Liquid IG Credit Issuers Index.

Distribution Policy : This Share Class will normally pay dividends semi-annually.

Product Table

Source: ETFWorld.co.uk