Jupiter and Goldman Sachs have today expanded their active ETF ranges following recent acquisitions enabling them to offer more to the rapidly growing segment of the exchange-traded fund market.
Jupiter JOGS on
Jupiter Asset Management has launched the Jupiter Origin Global Smaller Companies UCITS ETF (JOGS) on the London Stock Exchange and Swiss SIX exchange.
Jupiter has partnered with white-label specialist HANetf for the fund which already listed on Italy’s Borsa Italiana and Germany’s Xetra last month.
The actively managed ETF will charge a total expense ratio of 0.45% and will be run by the five-strong London-based Origin team that Jupiter bought last year.
Origin fund managers Chris Carter and Nerys Weir and analysts Ben Marsh and Ruairi Devery-Kavanagh will use a combination of fundamental research and quantitative analysis to pick global small-cap stocks, including those from emerging markets.
This is an asset class they say has outperformed global large-caps by an average of 2% a year on average in the past 20 years.
Their screen looks for companies demonstrating superior profitability and growth, attractive valuations, strong earnings revisions and positive share price momentum. They say the strategy has outperformed the MSCI AC World Small Cap index over one, three, five and 10 years.
They point out that global small-caps trade below peak valuations while global large caps are close to all-time highs.
This is Jupiter’s second active ETF after the launch of its Global Government Bond Active UCITS ETF in February.
Tarlock Randhawa, head of the Jupiter Origin team, said the fund offered something different to investors. “Our approach is grounded in clarity, evidence, and discipline. We deliberately avoid forecasts and subjective opinion when building our portfolios, instead applying our collective judgment to the objective evidence generated by our process.”
Goldmans innovates
Goldman Sachs Asset Management has launched three active bond ETFs a week after it signalled its ambition in the area with the acquisition of US ETF provider Innovator Capital Management.
Innovator, a pioneer in defined outcome ETFs, manages $28bn across 159 ETFs. Goldmans said the transaction would “significantly expand” its “ETF lineup and future product roadmap” in one of the fastest-growing active ETF categories.
Separately, today it has launched the Goldman Sachs Global Government Bond Active UCITS ETF (GOVT), EUR Government Bond Active UCITS ETF (GEUR) and Emerging Markets Hard Currency Bond Active UCITS (GEMB). They carry total expense ratios of 0.20%, 0.15% and 0.45% respectively.
The three funds have been listed on Deutsche Boerse with other exchanges to follow. They will be registered for sale in all key markets in the Europe, Middle East and Asia. This takes GSAM’s ETF lineup to 68 which include active EFS following the debut launch of other fixed income and equities ETFs this year.
Hilary Lopez, head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management, said: “With these launches, we are expanding our range of core building blocks for fixed income portfolios by leveraging Goldman Sachs Asset Management’s over three decades of experience in actively managing fixed income assets.”
Jupiter and Goldmans’ expansion follows the entry of M&G into the active ETF market this month with the launch of three UK and US government bond funds.
