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JP Morgan AM launches climate change solutions fund

News Team, 15/12/2021

JP Morgan Asset Management (JPMAM) has launched the JPMorgan Climate Change Solutions ETF (TEMP), the firm's first active, sustainable ETF. 

This encapsulates the insights of JPMAM's global research and portfolio management teams, a dedicated sustainable investing team and the firm's proprietary artificial intelligence technology.

The new ETF invests in companies that JPMAM believes are poised to benefit from growing demand for climate change solutions. 

This includes companies that are producing less carbon-intensive energy such as wind or solar power; improving the electric grid; investing in less carbon-intensive forms of agriculture, construction, or transportation; or developing technologies to reduce waste.

The active ETF will be managed by portfolio managers Francesco Conte, Yazann Romahi and Sara Bellenda, who each bring more than 20 years of industry experience. 

Consideration of material sustainability factors will continue to be part of the investment decision process, and in consultation with JPMAM's sustainable investing team, the portfolio managers will engage with companies on material issues.

After identifying the potential universe of suitable companies, the firm’s team of research analysts around the world will assess the fundamental investment case for each of the stocks, to help the portfolio management team construct a differentiated and high conviction portfolio. 

As an actively managed ETF, the portfolio managers also have discretion to invest in companies outside of the pre-defined basket of stocks.

At launch, the fund will have between 60 and 120 holdings.

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