JP Morgan Asset Management has added two actively managed exchange-traded funds (ETF) covering the theme of climate change from different perspectives to its suite of investment products.
Specifically, the investment manager has launched the JPMorgan Climate Change Solutions Active ETF (T3MP) and JPMorgan Sustainable Infrastructure Active ETF (JPSI), with both offerings looking to benefit from the portfolio management and dedicated sustainable investment teams within the organisation.
“These ETFs take an active approach to finding companies that are developing solutions that focus on both climate change and sustainability and we feel both T3MP and JPSI can help address the client demand we are seeing for world-leading solutions,” JP Morgan Asset Management Australia and New Zealand head of wholesale Mark Carlile said.
The T3MP ETF will invest in companies involved in producing energy through sources such as wind or solar power, organisations involved with less carbon-intensive forms of agriculture, construction or transportation, or developing technologies to reduce waste.
In a similar vein, the JPSI ETF will construct a portfolio that will include assets such as electricity networks, water networks and water treatment plants, healthcare facilities and care homes, and sustainable transportation systems.
Both funds will use JP Morgan Asset Management’s ThemeBot tool in the portfolio construction process to assess around 13,000 global stocks for their suitability.
“Once we identify the sub-themes that facilitate the business activities to build a more sustainable future, ThemeBot seeks to identify companies globally that are developing tangible sustainable solutions under the sub-themes to create a universe of potential investments,” JP Morgan Asset Management Asia-Pacific lead sustainable investing strategist Tomomi Shimada noted.
“This is then overlaid by our team of global research analysts who assess the fundamental investment case for each of the stocks and support the portfolio management team to construct differentiated and high-conviction portfolios.
“As an actively managed fund, the portfolio managers have the discretion to invest in companies outside of those identified by ThemeBot. At the same time, the portfolio managers conduct bottom-up analysis around the degree to which an individual investment’s products and/or services contribute to a targeted sustainability outcome, together with the sustainable investing team.”
The new offerings come after the manager introduced its initial active ETFs last month.
''