JPMorgan and Euronext announced the listing of the JPMorgan ETF GBI EMU on Euronext, an Exchange Traded Fund (ETF) based on JPMorgan’s European Monetary Union Government Bond Index (GBI EMU). The product is a passively managed benchmark tracker that replicates the performance of the JPMorgan GBI EMU, providing investors with direct access to the performance of the European fixed income market via a basket of more than 200 European government bonds.
The product is continuously quoted on NextTrack, the Euronext’s segment where ETFs are listed.
Thierry Marcolivio, head of structured fund promotion at JPMorgan said: “With its long-standing expertise and leadership in the fixed income market, JPMorgan is excited to respond to French and European clients’ demand. Through the JPMorgan ETF GBI EMU, investors can now access the performance of a leading European government bond index in a simple and effective way.”
Thibaud de Cherisey, head of ETFs at Euronext said: “We are delighted that JPMorgan, a leader in the global fixed income market, chose Euronext for the launch of their first European ETF. Through NextTrack, a preferred market venue for ETFs products in Europe, JPMorgan ETF GBI EMU will enable investors to easily access the European fixed income market.”
Since the launch of the JPMorgan GBI EMU Index in 1998, the Index has broadly been recognized as one of the flagship benchmarks for the European fixed income market. It includes regularly traded fixed rate domestic government bonds issued by countries which use the Euro as the official currency, including: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. The countries are also weighted by market capitalization and the total returns in each of these markets are calculated, providing a relative measure of their performance. The Index is also rebalanced monthly to satisfy the composition rules for the underlying instruments.
The JPMorgan ETF GBI EMU is a French fonds commun de placement, UCITS III compliant. The JPMorgan ETF GBI EMU is managed by J.P. Morgan Structured Fund Management (JPM SFM), an entity fully owned by JPMorgan and active in structured fund management in several European jurisdictions. JPMorgan and Banca IMI SpA will act as market makers for the product and provide the liquidity over the time. European and international ETFs issued by leading banks are quoted on NextTrack. As of today, 218 products invested in 164 different underlyings are quoted on NextTrack, currently one of the most dynamic segments of the market, with an increasing number of transactions (+121% since the beginning of the year -end of September-) and more than daily traded €300 million through these products.
The JPMorgan GBI EMU Index is the flagship benchmark of the EMU government bond market, one of the world’s largest investment markets. As of October 2007, the JPMorgan EMU Index market value was estimated at 3 trillion Euro, with an average yield of 4.48% and an average Macaulay duration of 6.39 years. It is accessible on Reuters and Bloomberg.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $1.5 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands.
NYSE Euronext, the holding company created by the combination of NYSE Group, Inc. and Euronext N.V., was launched on April 4, 2007. NYSE Euronext operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. With a leading $30.8trillion/€22.8 trillion total market capitalization of listed companies and average daily trading value of its combined markets of approximately $127 billion/€94 billion (as of June 29, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets. -- www.euronext.com
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