JPMorgan Shutting China Bond ETF in Europe

The firm says the active, ultrashort fund hasn't "attracted sufficient assets."

JP Morgan Asset Management will close its ultrashort China bond ETF just 18 months after it launched the fund.

In a letter to shareholders, the asset manager said the JPM RMB Ultra-Short Income UCITS ETF (JCST) will close on Dec. 7, because it it “has not attracted sufficient assets."

JCST had $29 million in assets under management as of Nov. 3.

The actively managed exchange-traded fund was launched alongside the $113 million JPM BetaBuilders China Aggregate Bond UCITS ETF (JCAG) in March 2022.

The fund was part of an ultrashort duration ETF range, comprising JPMorgan USD Ultra-Short Income UCITS ETF (JPST), the JPMorgan EUR Ultra-Short Income UCITS ETF (JEST) and the JPMorgan GBP Ultra-Short Income UCITS ETF (JGST).

JPMorgan Asset Management declined to comment on the closure.

Yields on Chinese Bonds Rising

Yields on short-term Chinese government bonds have risen in recent weeks despite its central bank’s effort to stimulate the economy with two interest rate cuts.

Meanwhile, the country's troubled property sector is placing more strain on the economy and could face more debt defaults over the next six months.

Despite the closure, JPMorgan Asset Managment continues to expand its active ETF range and last month launched the JPMorgan Active Global Aggregate Bond UCITS ETF (JAGG).