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JP Morgan Asset Management has introduced an actively managed thematic equity ETF targeting companies developing climate change solutions.
Bryon Lake, Global Head of ETF Solutions at JP Morgan Asset Management.
The JPMorgan Climate Change Solutions ETF (TEMP US) has been listed on NYSE Arca with an expense ratio of 0.49%.
The fund harnesses JP Morgan’s proprietary natural language processing tool, ThemeBot, to screen a universe of nearly 13,000 stocks globally and identify companies developing tangible solutions to address climate change.
Examples of eligible securities include companies that are producing renewable energy, improving the electric grid, investing in less carbon-intensive forms of agriculture, construction, or transportation, and developing technologies to reduce waste.
After identifying the potential universe of suitable companies, JP Morgan’s research analysts assess the fundamental investment case for each stock to help the portfolio management team construct a differentiated and high-conviction portfolio of between 60 and 120 holdings.
The fund’s focus is on quality businesses with sustainable competitive advantages that are expected to achieve long-term growth. It is unconstrained in its allocation to specific geographic regions and market capitalization segments.
Day-to-day operations of the fund are overseen by portfolio managers Francesco Conte, Yazann Romahi, and Sara Bellenda who each have more than 20 years of industry experience.
Bryon Lake, Global Head of ETF Solutions at JP Morgan Asset Management, commented: “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 JP Morgan Asset Management’s global active management capabilities to give investors access to purposeful investment opportunities while pursuing long-term capital appreciation.”
George Gatch, CEO of JP Morgan Asset Management, added: “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.”
TEMP is the second sustainability-focused ETF from JP Morgan Asset Management following the December 2020 launch of the JPMorgan Carbon Transition US Equity ETF (JCTR US). This fund tracks a proprietary index, providing core exposure to US equities while capturing the benefits from the transition to a lower-carbon economy. It currently houses $30m in assets and comes with an expense ratio of 0.15%.