JPMorgan USD IG Corporate Bond Active UCITS ETF

Investment rationale

The fund is designed for investors seeking long-term exposure to the US investment grade corporate bond sector, with the aim of outperforming the Bloomberg US Corporate Bond Index through active management. It has a recommended holding period of 5 years and a Summary Risk Indicator of 3 out of 7, described as medium-low risk. Typical investors are those who want an asset allocation to US investment grade corporate securities and to benefit from yields generally higher than those offered by government securities. Its distinct role comes from combining an actively managed, benchmark-aware corporate bond portfolio with ESG promotion under Article 8, including values- and norms-based screening and minimum thresholds for issuers with positive ESG characteristics.

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How the strategy works

The objective is to achieve a long-term return in excess of the Bloomberg US Corporate Bond Index by actively investing primarily in investment grade US dollar-denominated corporate debt securities. The sub-fund invests at least 67% of assets, excluding ancillary liquidity, in investment grade USD-denominated corporate debt securities; issuers may be located in any country, including emerging markets, although the majority of assets are invested in issuers domiciled in, or mainly active in, the US. It may invest up to 5% of NAV in contingent convertible bonds, may use financial derivative instruments for efficient portfolio management, and does not seek to replicate the benchmark, although it uses the benchmark as a basis for portfolio construction and keeps the portfolio broadly similar in composition and risk characteristics within indicative parameters such as duration. The base currency is USD, the share class is accumulating with no dividend distribution, and at 31 August 2026, average duration was 6.61 years and average maturity was 10.16 years.

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Investment philosophy

• The fund uses a research-driven investment process focused on fundamental, technical and valuation analysis across countries, sectors and issuers, within a universe centred on investment grade USD-denominated corporate debt securities.

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

• ESG is systematically included in investment decisions on at least 90% of securities purchased; 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.

• Values- and norms-based screening is applied to exclude certain industries and issuers based on ESG criteria and minimum standards of business practice; the fund may also invest up to 5% of NAV in contingent convertible bonds and use derivatives for efficient portfolio management.

• As of 31 August 2026, the portfolio held 403 positions, with 92.89% in corporate bonds and 5.96% in cash; the largest regional exposure was the United States at 77.5%, the largest sector was Financial Institutions at 37.8%, and top holdings included Southern Company 5.150% due 15.09.2032, HSBC 5.240% due 13.05.2031, and Bank of America issues due 13.02.2031 and 22.04.2032.

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Management team

The portfolio managers are Vikas Pathani, Andreas Michalitsianos, Sameer Iqbal and Qiwei Zhu. The fund itself launched on 6 December 2018, and the share class launched on the same date.

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Distinctive features

The fund combines active management with an enhanced index approach, so it is constructed relative to the Bloomberg US Corporate Bond Index while still seeking excess return through issuer, sector and relative value decisions. It is explicitly positioned in the US investment grade corporate bond market, with 403 holdings at 31 August 2026 and broad exposure across financials, utilities, consumer non-cyclicals, energy and communications. Its ESG profile is a distinguishing feature: it is classified under SFDR Article 8, systematically integrates ESG analysis, applies values- and norms-based exclusions, and maintains minimum thresholds for issuers with positive ESG characteristics as well as a minimum allocation to Sustainable Investments. The ongoing charge was 0.04% as at 31 August 2026, reflecting a temporary fee waiver, and the ETF is listed on multiple exchanges and trading currencies. The annual total expense ratio (TER) may be up to 0.19% before waivers. The TER combines management and advisory fees with ordinary operating expenses.

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Risks

The fund has a Summary Risk Indicator of 3 out of 7, assuming a 5-year holding period, and risk may be significantly higher if held for less than that period. The value of debt securities may change significantly with economic and interest-rate conditions and with the creditworthiness of issuers; issuers may fail to meet payment obligations or suffer rating downgrades. Although the portfolio is primarily investment grade, it includes a small allocation below BBB and may invest up to 5% of NAV in contingent convertible bonds, which can be adversely affected by trigger events including conversion into equity at a discounted price, write-downs, and coupon suspension or deferral. ESG screening can cause the fund to perform differently from similar funds without such exclusions, the fund may underperform its benchmark despite seeking returns above it, and returns can also change because of currency fluctuations for investors investing in a currency other than that 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. and part of the asset management businesses marketed under the J.P. Morgan Asset Management name. JPMorgan Asset Management (Europe) S.à r.l. is located at 6, route de Trèves, L-2633 Senningerberg, Luxembourg, with corporate capital of EUR 10,000,000. The sub-fund is authorised in Ireland and regulated by the Central Bank of Ireland.

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