JP Morgan Asset Management has launched a new actively managed ETF in Europe targeting companies worldwide that are developing solutions to address climate change.
The JPMorgan Climate Change Solutions UCITS ETF has been listed on London Stock Exchange in US dollars (T3MP LN) and pound sterling (T3PM LN), on SIX Swiss Exchange in US dollars (TEMP SW), and on Deutsche Börse Xetra (T3MP GY) and Borsa Italiana (TEMP IM) in euros.
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 companies include those that are producing renewable energy, improving the electric grid, investing in less carbon-intensive forms of agriculture and construction, 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.
The ETF comes with an expense ratio of 0.55% and is classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
Commenting on the launch, Olivier Paquier, Head of ETF Distribution in EMEA for JP Morgan Asset Management, said: “Investors are increasingly looking for meaningful solutions to address climate change. We are excited to help address our clients’ needs through the launch of T3MP, offering the best of JPMAM’s active management capabilities, combining for the first time artificial and human intelligence in an ETF. Investors will be able to access an advanced strategy that seeks to capture innovative investment opportunities and solutions facilitating the low carbon transition while pursuing long-term capital appreciation.”