The case for US equities after a record quarter
A soft landing outcome coupled with the potential for monetary easing later this year, could present significant tailwinds for US stocks.
Important Information
JPMorgan Sustainable Infrastructure Fund
1. The Fund invests primarily (at least 70%) in equity securities globally (including listed real estate investment trusts (“REITS”)) that are well positioned to promote the development of the infrastructure required to facilitate a sustainable and inclusive economy, whilst not significantly harming any environmental or social objectives and following good governance practices.
2. The Fund is therefore exposed to risks related to investment, equity, REITs, sustainable investing, infrastructure companies, its investment strategy (associated with concentration in a single theme and/or sub-theme; sub-themes and changing market trends; the use of big data research and artificial intelligence technique), concentration, emerging markets, small companies, currency, derivatives and class currency.
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Key takeaways:
We share a perspective on sustainable and traditional infrastructure, and the opportunity set1 in the drive for sustainability.
Infrastructure in the traditional sense
Electricity networks, railroads and telecom towers would generally come to mind when investors think of infrastructure. Infrastructure can be defined as the set of fundamental facilities and essential assets that support the day-to-day functions of households, firms and society at large.
It is becoming increasingly challenging to employ a business-as-usual approach to investing in infrastructure, where some projects could lead to ecological concerns and increased carbon-dioxide emissions. This, coupled with changes in demographics and rapid urbanisation, are creating unique challenges.
In this regard, we see opportunities in infrastructure companies that align with sustainable investing goals and trends, such as environmental resiliency, social infrastructure and improved connectivity.
How we align infrastructure with sustainability2
As the world transitions to a low-carbon economy, traditional infrastructure business models such as gas infrastructure are relatively less attractive from a risk/reward perspective.
Instead, we believe there are unique opportunities in infrastructure companies that are striving to help build a more sustainable and inclusive economy. Such companies are better positioned as they provide solutions that help address megatrend challenges. For example, electrification is at the core of decarbonisation, and this has spurred the development of related assets such as electricity networks.
Additionally, we seek to capture growth opportunities in innovative infrastructure areas that leverage new technologies to buid a more sustainable future. For example, electric vehicle charging stations and battery storage are part of the infrastructure framework that helps drive electrification.
Environmental Resilience
Changes in climate patterns are driving greater awareness to make our planet more liveable, presenting opportunities in infrastructure companies engaging in renewable energy, electricification and cleaner water.
Electricity infrastructure
Electricity networks
Water infrastructure
Water network companies
Water treatment companies
Renewables infrastructure
Wind, solar and hydropower developers
Social Advancement
Demographic shifts have driven demand in some social infrastructure, presenting opportunities in medical infrastructure, as well as social housing and education infrastructure.
Medical infrastructure
Healthcare facilities
Senior living providers
Social housing & education infrastructure
Affordable housing companies
Student accommodation providers
Improved Connectivity
Additionally, the growth of megacities will require an uplift in technology to help improve connectivity, drive envinronmentally friendlier forms of transportation and improve logistics in the urban environment.
Digital infrastructure
Data storage companies
Telecom tower operations
Transport infrastructure
Sustainable railroad companies
Sustainable logistics
Sustainable warehouse providers
Sustainable delivery companies