Jupiter Asset Management (the Group) today announces the launch of the Jupiter Global Government Bond Active UCITS ETF, the Group’s first Exchange Traded Fund (ETF), in partnership with white-label ETF specialist, HANetf.
Jupiter has been exploring new methods of delivery for its products and how a wider range of clients can access its broad investment expertise. With more flexible execution, a high degree of transparency and competitive pricing, active ETFs provide an alternative and democratic access point for clients. Consistent with Jupiter’s truly active high-conviction investment management approach, actively-managed ETFs also offer investors the potential for higher returns than traditional passive products.
The Jupiter Global Government Bond Active UCITS ETF, or GOVE, aims to outperform traditional sovereign bond investments by offering a diversified portfolio of developed and emerging market government debt, with a low correlation to equities and other risk assets. With their complexity, potential for market inefficiencies, and sensitivity to macroeconomic factors, Global Sovereign Bonds are an ideal asset class for an active ETF.
The fund is managed by Vikram Aggarwal, sovereign debt investment manager, who has been at Jupiter since 2013. The fund's investment strategy focuses on identifying mispricing in the sovereign bond market by comparing our perception of the current economic regime to market expectations. This contrarian approach seeks to capitalise on opportunities where there is a significant divergence between the perceived and actual economic conditions.
Matthew Beesley, CEO of Jupiter, said:
We are pleased to partner with HANetf for the launch of our first active ETF. We have been exploring new ways to provide clients with access to Jupiter’s broad investment expertise and today’s launch is part of that strategy. We know that the greater transparency, speed of execution and competitive pricing points mean that clients are looking to increase their exposure of active ETFs. We believe Jupiter’s truly active investment approach and differentiated product offering leave us very well placed to grow assets in this exciting new area.
Hector McNeil, Co-Founder and Co-CEO of HANetf, said:
“We are delighted to work with Jupiter on its first active ETF at this pivotal time for the market. Net inflows into active ETFs from clients based in Europe increased by more than 50% between the first and second quarters of 2024. Total assets under management in Europe are now over $41bn and as clients increase their allocations, we are seeing a very healthy growth dynamic.”
For further information, please contact:
Victoria Howley
Jupiter Asset Management
0203 817 1657
Victoria.howley@jupiteram.com
Olivia O’Connor
Jupiter Asset Management
0203 817 1436
Olivia.OConnor@jupiteram.com
Important Information
The information contained in this market commentary is intended solely for members of the media and should not be relied upon by private investors or any other persons to make financial decisions. This communication, including any data and views in it, is not a financial promotion as defined in MiFID II. It does not constitute an invitation to invest or investment advice in any way. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.
The views expressed are those of the Fund Manager at the time of writing, are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances.
Investment risk information
Currency (FX) Risk - The Fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
Share Class Hedging Risk - The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
Interest Rate Risk - The fund can invest in assets whose value is sensitive to changes in interest rates (for example bonds) meaning that the value of these investments may fluctuate significantly with movement in interest rates e.g. the value of a bond tends to decrease when interest rates rise.
Pricing Risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
Emerging Markets Risk - Emerging markets are potentially associated with higher levels of political risk and lower levels of legal protection relative to developed markets. These attributes may negatively impact asset prices.
Contingent convertible bonds - The fund may invest in contingent convertible bonds. These instruments may experience material losses based on certain trigger events. Specifically these triggers may result in a partial or total loss of value, or the investments may be converted into equity, both of which are likely to entail significant losses.
Credit Risk - The issuer of a bond or a similar investment within the fund may not pay income or repay capital to the Fund when due.
Derivative risk - the Fund may use derivatives to generate returns and/or to reduce costs and the overall risk of the Fund. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
Counterparty Default Risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the fund's assets.
Sub investment grade bonds - The fund may invest a significant portion of its assets in securities which are those rated below investment grade by a credit rating agency. They are considered to have a greater risk of loss of capital or failing to meet their income payment obligations than higher rated investment grade bonds.
Issued in the UK by Jupiter Asset Management Limited (registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ) which is authorised and regulated by the Financial Conduct Authority. Issued in the EU by Jupiter Asset Management International S.A. (registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg) which is authorised and regulated by the Commission de Surveillance du Secteur Financier.