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PrintJPMorgan announces the first exchange tradable product on a JPMorgan benchmark bond index
Oct 26, 2007
JPMorgan and Euronext, one of the leading cash equities and derivatives exchanges in the world, have announced the listing of the first tradable product and exchange traded fund, the JPMorgan Exchange Traded Fund (ETF), to be based on the firm’s European Monetary Union (EMU) Government Bond Index (GBI).
Beat von Gunten, head of Structured Products Marketing for EMEA at JPMorgan said: “With its long-standing expertise and leadership in the fixed income market, JPMorgan is excited to launch the ETF GBI EMU product which is a clear response to client demand. Our clients and other investors can now access the performance of a leading European government bond index in a simple and effective way.”
JPMorgan ETF GBI EMU has been designed to provide investors with direct access to the European fixed income market via a basket of more than 200 European government bonds. The product will be continuously quoted on NextTrack, the Euronext segment where trackers and active ETF’s are listed, and will be passively managed to track the GBI EMU benchmark. An ETF is an open ended instrument that is publicly listed and can be traded at any time during the course of the day.
Gloria Kim, head of the JPMorgan Global Bond Index Group, said: “The GBI EMU Index provides clients with access to the quality of JPMorgan’s index philosophy which includes extreme diligence in index management, transparency and diversification. The index is a reliable and accurate source of information, helping investors measure the total return of government bond markets of member countries of the European Monetary Union.”
Since the launch of the JPMorgan GBI EMU Index in 1998, the index has become one of the benchmarks of the EMU government bond market, one of the world’s largest investment markets. As of October, the JPMorgan EMU Index market value was estimated at €3 trillion, with an average yield of 4.48% and an average duration of 6.39 years.
NextTrack is one of the most dynamic segments of the fixed-income market and contains quotes for 217 products invested in 161 different underlyings. In the first nine months of the year transactions on NextTrack increased by 121% and more than €300 million is traded on a daily basis through the segment.
J.P. Morgan Securities Limited and Banca IMI SpA will act as the market makers for the JPMorgan ETF GBI EMU product, which will also be listed on the Borsa Italiana S.p.A.