J.P. Morgan Asset Management (JPMAM) launches its first thematic fund combining artificial and human intelligence in the UK.
J.P. Morgan Asset Management (JPMAM) has today launched three new sustainable-focused OEICs including the firm’s first thematic offering in the UK, JPM Climate Change Solutions Fund.
Climate Change Solutions will seek to invest in forward-thinking companies which are developing and scaling solutions to address climate change. These companies could include those producing clean energy such as wind, solar, or hydro for a renewable ecosystem; investing in less carbon-intensive forms of agriculture or construction; investing in sustainable forms of transportation and developing technologies to reduce waste.
Climate Change Solutions will use JPMAM’s proprietary natural language processing tool, ThemeBot, to screen nearly 13,000 stocks globally, rapidly analysing tens of millions of data sources. ThemeBot will seek to identify companies globally that are acting on climate change, from established players adapting their business models to early-stage innovators developing future technologies for the low carbon transition, including identifying small and mid-cap investment opportunities which are change makers in the field. JPMAM’s 90+ research analyst team will then assess the fundamental investment case for each of the stocks identified by ThemeBot, to help construct a differentiated and high-conviction portfolio.
Climate Change Solutions will be managed by portfolio managers Francesco Conte, Yazann Romahi and Sara Bellenda, who each bring over 20 years of industry experience. The portfolio managers will select their highest conviction ideas, drawing on JPMAM’s research analyst insights, as well as the climate change insight and stewardship experience of JPMAM’s Sustainable Investing team, in order to build an unconstrained portfolio of companies leading the way in delivering climate change solutions. At launch, the fund will have 50-100 holdings. The C-share class of Climate Change Solutions Fund will have a Total Expense Ratio (TER) of 70 basis points.
Dale Erdei, Head of UK Funds at J.P. Morgan Asset Management, commented: “We’re delighted to be growing our sustainable offering in the UK market and particularly excited to be launching a thematic portfolio which has a differentiated approach. The Climate Change Solutions fund is designed to help investors intelligently capture innovative investment opportunities and technologies facilitating the low carbon transition.”
In addition to JPM Emerging Markets Sustainable Equity Fund (OEIC), which was launched last December, as well as JPM Climate Change Solutions Fund (OEIC), JPMAM has further expanded its sustainable offering with the launch of JPM UK Sustainable Equity Fund (OEIC) and JPM Global Sustainable Equity Fund (OEIC). Both funds will apply exclusion policies to select unsustainable sectors. They will each combine quantitative and fundamental analysis to invest in companies with strong or improving sustainability characteristics, to seek to deliver attractive potential returns. Consideration of material ESG factors will sit at the heart of investment decision making and, in partnership with JPMAM’s sustainable investing team, the portfolio managers will engage with companies on material issues.