Exclusionary Screening

Watch Aubre Clemens, Vice President of J.P. Morgan Manager Selection Due Diligence Team, introduce the approach of Exclusionary Screening.


Defining the approach

Exclusionary screening, also known as negative screening, is the process of removing those sectors, industries or companies whose activities or practices are inconsistent with an investor’s values, standards or norms. For example, exclusionary screens may include tobacco, weapons, gaming, alcohol or nuclear power.

 

 

 

Our capabilities

Investors can approach exclusionary screening in a variety of ways, across sectors, industries or companies. To help align your portfolio with your values, we offer:

  • Mutual funds
  • Separately managed accounts
 

Case Study: Envisioning a world of peace*

The head of a family office was concerned that his portfolio might include—now or in the future—investments in companies that seek to earn revenue from the manufacture or sale of firearms.

PORTFOLIO GOALS: To direct his investments away from firearms and toward more socially responsible companies and industries.

OUR APPROACH: Investment guidelines were created to exclude weapons manufacturers. Existing holdings were sold, and investments were redirected to companies that promoted social causes.

*All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as recommendations. They are based on current market conditions that constitute our judgment and are subject to change. Results shown are not meant to be representative of actual results. Past performance is not a guarantee of the future performance of an investment.

Exclusionary Screening

Access to:

  • Mutual funds
  • Separately managed accounts
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Environmental, Social and Governance (ESG) Integration

Access to:

  • Mutual funds
  • Separately managed accounts
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Positive Screening

Access to:

  • Exchange-traded funds
  • Mutual funds
  • Separately managed accounts
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Thematic Investing

Access to:

  • Fixed income securities
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Impact Investing

Access to:

  • Private investments
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Contact your J.P. Morgan Representative to learn how we can help.

IMPORTANT INFORMATION

While investments in private equity funds provide potential for attractive returns, access to opportunities not available in the public markets and diversification, they also present significant risks including illiquidity, long-term time horizons, loss of capital and significant execution and operating risks that are not typically present in public equity markets. Private equity funds typically have a 10-15 year term and will begin to monetize investments after holding them for 4-5 years.

This material is for information purposes only, and not an offer or solicitation to enter into a transaction. The information contained in this material should not be relied upon in isolation for the purpose of making an investment decision. Investors are urged to consider carefully whether the products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) and strategies discussed are suitable to their individual needs. Investors must also consider the objectives, risks, charges, and expenses associated with the investment product or strategy prior to making an investment decision.

More complete information is available from your J.P. Morgan representative, and you should be aware of the general and specific risks relevant to the matters discussed in the material.