JPMorgan EUR 1-5 yr IG Corporate Bond Active UCITS ETF

Investment rationale

This fund is designed to provide a long-term return above the Bloomberg Euro Corporate 1-5 Year Index through active exposure to short-term investment grade euro-denominated corporate bonds. With a Summary Risk Indicator of 2 out of 7 and a recommended holding period of 5 years, it is positioned as a lower-risk fixed income allocation rather than a high-volatility return-seeking strategy. It is intended for investors seeking exposure to the investment grade EUR corporate securities sector and the higher yields generally offered by corporate bonds relative to government securities. Its distinct role comes from combining short-duration corporate bond exposure with active security selection and ESG-promoting characteristics under Article 8.

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How the strategy works

The objective is to achieve a long-term return in excess of the Bloomberg Euro Corporate 1-5 Year Index by actively investing primarily in a portfolio of short-term investment grade euro-denominated corporate debt securities. The sub-fund invests at least 67% of assets, excluding ancillary liquidity, in short-term investment grade euro-denominated corporate debt securities, with issuers allowed from any country including emerging markets; it may also use financial derivative instruments for efficient portfolio management. The benchmark is used as a reference for portfolio construction and performance measurement, and the fund is expected to resemble the benchmark’s composition and risk characteristics, although the manager has discretion to deviate within indicative risk parameters such as duration and does not seek to replicate or track it. As of 31 August 2026, the portfolio was 95.68% corporate bonds and 2.22% cash, with average duration of 2.71 years, average maturity of 2.96 years, yield to maturity of 4.10%, and credit quality split of 0.98% AA, 27.09% A, 67.35% BBB and 2.36% below BBB. The share class is EUR-accumulating, does not distribute dividends, and has a recommended holding period of 5 years.

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Investment philosophy

• The fund uses a research-driven investment process focused on analysing fundamental, technical and valuation factors across countries, sectors and issuers.

• It follows an enhanced index approach, building the portfolio in reference to the Bloomberg Euro Corporate 1-5 Year Index by overweighting securities with the highest perceived outperformance potential and underweighting securities based on fundamental or relative value analysis.

• The investable universe is primarily short-term investment grade euro-denominated corporate debt securities, with at least 67% of assets invested in this area and issuers permitted from any country, including emerging markets.

• ESG is systematically integrated into investment decisions on at least 90% of purchased securities; at least 51% of NAV is invested in issuers with positive environmental and/or social characteristics and good governance practices, and at least 10% of NAV is invested in Sustainable Investments under SFDR, alongside values- and norms-based exclusions.

• As of 31 August 2026, the portfolio held 185 securities, was concentrated in Financial Institutions at 58.2%, had its largest regional exposure in the United States at 24.6%, and top holdings included Wells Fargo (2.2%), Goldman Sachs (2.1%), UBS (1.9%), Societe Generale (1.7%) and Unicredit (1.6%).

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Management team

As of 31 August 2026, the portfolio managers are Usman Naeem, Andreas Michalitsianos, and Qiwei Zhu.

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Distinctive features

The fund combines active management with a short-duration investment grade euro corporate bond mandate referenced to the Bloomberg Euro Corporate 1-5 Year Index. It is differentiated by its enhanced index construction, where benchmark-relative overweights and underweights are driven by fundamental, technical and valuation analysis rather than simple replication. The strategy also promotes environmental and/or social characteristics under Article 8, applies values- and norms-based screening, requires at least 51% of NAV in issuers with positive ESG characteristics and at least 10% in Sustainable Investments, and integrates ESG analysis into at least 90% of purchased securities. The ETF structure includes daily public portfolio disclosure, exchange listings across multiple venues, and an ongoing charge of 0.04% as at 31 August 2026 due to a temporary fee waiver. The annual total expense ratio (TER) is up to 0.19% before waivers and combines management and advisory fees with ordinary operating expenses.

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Risks

The fund has a Summary Risk Indicator of 2 out of 7, assuming a 5-year holding period, and risk may be significantly higher if held for less than the recommended period. Debt security values may change significantly with economic and interest-rate conditions and the creditworthiness of issuers; issuers may fail to meet payment obligations and ratings may be downgraded. Although the strategy focuses on investment grade bonds, the portfolio included 2.36% below BBB exposure as of 31 August 2026, and below-investment-grade debt can have higher volatility and lower liquidity. The fund may use financial derivative instruments for efficient portfolio management and may invest in contingent convertible debt securities, which can be adversely affected by trigger events that cause conversion to equity, write-downs, or coupon cancellation or deferral. ESG screening may cause the fund to perform differently from similar funds without such exclusions, the fund may underperform its benchmark, and investors may also experience currency-related changes in return if their own investment currency differs from the currency used in the past performance calculation.

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Asset manager

The management company is JPMorgan Asset Management (Europe) S.à r.l., a member of JPMorgan Chase & Co. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide. JPMorgan Asset Management (Europe) S.à r.l. is located at 6, route de Trèves, L-2633 Senningerberg, Luxembourg. The sub-fund is authorised in Ireland and regulated by the Central Bank of Ireland.

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