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    1. UK Sustainable Equity Fund

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    JPM UK Sustainable Equity Fund

    Transform your UK core sustainably



     

    Sustainable opportunities across sectors

    The UK equity market is not always viewed as a natural hunting ground for sustainable investors. But beyond the high-profile oil & gas and mining names, the index offers rich opportunities to invest in well-run companies committed to equality and to the sustainability of our planet. 

    Many UK companies are taking their environmental, social and governance responsibilities seriously, and transforming their businesses to benefit their employees, their communities and our world.

    JP Morgan | UK Sustainable Equity Freeforms

    Resilient Ecosystems

    Royal Mail

    Royal Mail, the UK postal service has struggled with union and labour relationships for many years, resulting in persistent restructuring and strike action as the company battles against a declining core letter business.

    Equal Opportunities

    Tate & Lyle

    While the Tate & Lyle brand is still associated with the bags of sugar you see on the supermarket shelf, the company has actually been sugar free for over a decade.

    Governance Imperatives

    Persimmon

    Persimmon hit the papers for all the wrong reasons in 2017/18 as the house builder, a beneficiary of the government’s help-to-buy scheme, paid record directorate compensation to a number of executives.

    As Royal Mail has invested in the growing parcels business, it has been able to turn a corner with labour relations. The Deputy General Secretary (Postal) of the CWU is recently on record as saying that the union and the company are now delivering on a “joint vision”, evidenced by company survey data, which has shown a significant increase in staff responding that they “feel valued”.

    As a result, Royal Mail looks set to improve its social credentials significantly. This comes alongside its leading environmental performance, with carbon footprint per delivered parcel 60-70% lower than peers as a result of Royal Mail’s “on-foot” delivery network.

    Having sold its namesake granulated sugar business in 2010, Tate & Lyle has spent recent years reinventing itself as a food & beverage solutions business, working with large food & beverage companies to replace sugar with alternative sweetener combinations that reduce calories but maintain taste and texture.

    As a result, the company has been able to commit to removing 9 million tonnes of sugar - equivalent to 36 trillion calories, or 250 billion cans of Coke1 – from people’s diets by 2025.

    This reinvention of the business model also brings a rerating opportunity, with the company still trading on around half the price/earnings ratio of longer-established ingredients businesses such as Kerry Group and Symrise.

    1 Based on a standard 12oz can, coca-colacompany.com

    At that time, Persimmon had become synonymous with poor build quality, with customer satisfaction significantly trailing that of its sector peers. However, following significant cultural change, we believe that the foundations are in place for Persimmon to undergo a change in perception from an ESG perspective. In our opinion, the external appointment of Dean Finch as chief executive has been instrumental in changing the culture of the business.

    Importantly, with customer satisfaction at 90.8% in the most recent survey (based on rolling 12 months to December 2020, published in June 2021), the company is likely to achieve a five-star Home Builders Federation (HBF) rating in the next survey.

    Persimmon’s HBF customer satisfaction survey results, 2015-Q1’21

    Graph: Persimmon’s HBF customer satisfaction survey results, 2015-Q1’21

    Source: Home Builders Federation’s National New Homes Customer Satisfaction Survey

    Invest in the UK’s sustainable leaders

    JPM UK Sustainable Equity Fund seeks to deliver long-term capital growth by investing in companies that contribute to resilient ecosystems and/or equal opportunities, underpinned by robust governance and strong economics.

    JP Morgan | UK Sustainable Equity Freeforms

    Governance imperatives

    Resilient ecosystems

    Climate change mitigation


    Enabling the transition to a low carbon economy

    Responsible resource consumption


    Promoting circularity and protecting biodiversity

    Equal opportunities

    Social cohesion


    Driving empowerment and well-being

    Diverse and motivated workforce


    Creating resilient and inclusive workforces

    Sustainability embedded throughout organisations

    Building a sustainable portfolio

    The fund takes a four-step approach to building a portfolio of UK companies with best-in-class sustainability characteristics.

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    sustainable-equity-image1

    We exclude industries that are unsustainable on values that matter to our clients, including fossil fuels, gambling, tobacco, weapons and adult entertainment.





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    sustainable-equity-image2

    We make norms-based exclusions for companies in breach of the United Nations Global Compact, while we exclude stocks in the worst quintile of companies based on our proprietary sustainability score.



    sustainable-equity-icon-3
    sustainable-equity-image3

    We invest in companies identified by our analysts as sustainable leaders within their sectors, or companies that demonstrate improving sustainability characteristics, based on our near-70 question sustainability survey.

    sustainable-equity-icon-4
    sustainable-equity-image4

    We use active engagement to understand how companies approach ESG issues, to influence behaviour and to encourage best practice.






    See the fund detail

    FUND UPDATES AND DOWNLOADS

    Webconference

    Hear from the fund's investment team in this special webconference recorded on the 21 September 2021

    Watch the replay

    Fund story

    Download the fund’s key features and investment approach in PDF format.

    Download the fund story

    Exclusion policy

    See the fund’s current exclusion policy (subject to change without notice).

    Read the policy

    This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Investment is subject to documentation, which is comprised of the Prospectus, Key Investor Information Document (KIID) and either the Supplementary Information Document (SID) or Key Features/Terms and Conditions. These documents, together with the annual report, semi-annual report and instrument of incorporation are available free of charge from JPMorgan Asset Management (UK) Limited.


    This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP. 

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