JP Morgan mulls low-cost fixed income

JP Morgan will consider launching a low-cost fixed-income active fund when the company expands its lowcost active range.

In February, the firm launched a low-cost active offering, the JPM UK active index fund, which aims to outperform the FTSE All-Share index.

Head of sales Jasper Berens says the firm will “undoubtedly” launch more low-cost active funds but it is focused on a marketing drive to promote the current fund, which begins in September.

He says: “A very low-risk, low-cost active managed bond fund is the kind of thing we would possibly look at.”

Berens says JP Morgan would also look at markets such as the US and Europe.

In March, Schroders kicked off its own low-cost range with the launch of its UK core and QEP global core offerings. In June, it added the dynamic multi-asset fund to the range.

Chelsea Financial Services managing director Darius McDermott says: “I expect more types of launches in this area and for Schroders and JP Morgan to end up having a suite of these products. I would be surprised if the traditional alpha managers launch low-cost active funds.”