The JPMorgan GBP Ultra-Short Income UCITS ETF GBP (Acc) is an actively managed ETF. The JP Morgan GBP Ultra Short Income Strategy invests primarily in investment grade, pound denominated, short term fixed, variable and floating rate debt securities. The strategy will concentrate its investments in the banking industry and, under normal conditions, will invest more than 25 per cent of its Net Asset Value in debt securities issued by companies which are in the banking industry. The benchmark is ICE BofAML Sterling 3-Month Government Bill index.
The Income version of this holding was recently added to Freetrade and it would be great to see the Accumulation version added too.
5 years ago £100.62
present price £101.09
5 year low £99.54
5 year high £101.27
dividend 5.76%
TER 0.18%
I assume the dividend has moved with interest rates. As the bonds are ultra short dated. Still a better return than a gilt without a significant risk to capital.
So if/when interest rates start to fall the bonds will improve in price by a minimal amount.
Interesting option to protect capital and get a reasonable return in today’s market.
All figures are via freetrade.
Yes the relatively high dividend is related to recent interest rates hikes. The product is similar to market money funds such as CSH2, QUID, XSTR and could be an alternative diversifier for those seeking low volatility cash-like instruments.