JPMorgan Launches Active ETF Targeting Climate Solutions Investment Opportunities
J.P. Morgan Asset Management (JPMAM) announced the launch of the JPMorgan Climate Change Solutions ETF (TEMP), the company’s first active sustainable ETF strategy, targeting investments in companies positioned to benefit from the growing demand for climate change solutions.
George Gatch, Chief Executive Officer, J.P. Morgan Asset Management, said:
“While nearly all sustainable U.S. ETF assets are managed through passive indices, this fund takes an active approach to finding companies that are developing solutions to address climate change. We believe that active management provides a great pathway to achieving clients’ sustainability goals, and TEMP is the first in the series of sustainable, thematic, active strategies we are building to address client demand in this area.”
According to JPMAM, the new ETF strategy will combine artificial intelligence, big data, and the firm’s sector insights in order to identify and select companies for investment. The fund will use ThemeBot, JPMAM’s proprietary natural language processing tool, to review thousands of stocks globally and create a universe of potential investments in companies developing solutions to address climate change. From there, the firm’s research analysts will assess each stock’s investment case and the portfolio management team will construct the portfolio. TEMP will be managed by portfolio managers Francesco Conte, Yazann Romahi and Sara Bellenda.
Bryon Lake, Global Head of ETF Solutions, J.P. Morgan Asset Management, said:
“Investors we talk to are increasingly looking for investment products that will provide meaningful investment opportunities across a range of industries and geographies, and we’re excited to help address our clients’ goals through the launch of TEMP. This active ETF leverages the best of JPMAM’s global active management capabilities to give investors access to purposeful investment opportunities, while pursuing long-term capital appreciation.”
Target areas of investment for the fund include companies that produce low-carbon energy, such as wind or solar power, improve the electric grid, provide less carbon-intensive forms of agriculture, construction, or transportation, or develop technologies to reduce waste. At launch, the new fund will have between 60 – 120 holdings.
Francesco Conte, Portfolio Manager, International Equity Group, J.P. Morgan Asset Management, said:
“Climate Change is one of the largest systemic challenges we face and addressing it will require meaningful investment and widespread innovation. TEMP harnesses our high conviction investment ideas, focused on company fundamentals, to invest in long-term, quality, sustainable companies that are building the solutions we need to address this monumental challenge.”