Positive Screening

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


Defining the approach

Positive screening, also known as “best-in-class screening,” increases a portfolio’s exposure to companies, sectors or projects that have a variety of positive environmental, social and governance (ESG) qualities. Unlike exclusionary (or negative) screening, which removes objectionable investments entirely from a universe of potential opportunities, positive screening proactively seeks out investments believed to have a positive impact on the environment and society.

 
 

Our capabilities

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

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

Case Study: Combating climate change*

A family foundation is committed to helping create a cleaner, low-carbon economy.

PORTFOLIO GOALS: The foundation wanted to lower its exposure to companies with high carbon emissions.

OUR APPROACH: We recommended the foundation invest a portion of its portfolio in a separately managed account reflecting a lower carbon exposure than the broad market. The foundation chose an exchange-traded fund designed to track the results of the MSCI ACWI Low Carbon Target Index, a benchmark for investors seeking to manage risks associated with the transition to a low-carbon economy.

*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.

Note: Indices are for illustrative purposes only, are not investment products, and may not be considered for direct investment. The information provided herein is with respect to a number of indices and not the Strategy, and does not accurately reflect the performance of any individual fund or the effects of relevant fees and charges. Indices are an inherently weak predicative or comparative tool.

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
   Learn More 
Positive Screening

Access to:

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

Access to:

  • Fixed income securities
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Impact Investing

Access to:

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

INDEX DEFINITIONS

All index performance information has been obtained from third parties and should not be relied on as being complete or accurate. Indices are shown for comparison purposes only. While an investor may invest in vehicles designed to track certain indices, an investor cannot invest directly in an index.

The MSCI ACWI Low Carbon Target Index was launched on September 23, 2014. The MSCI ACWI Low Carbon Target Index is based on the MSCI ACWI Index, its parent index, and includes large and mid-cap stocks across 23 developed markets (DM) and 24 emerging markets (EM) countries.* The Index is a benchmark for investors who wish to manage potential risks associated with the transition to a low-carbon economy. The index aims for a tracking error target of 0.3% (30 basis points) while minimizing the carbon exposure. By overweighting companies with low carbon emissions (relative to sales) and those with low potential carbon emissions (per dollar of market capitalization), the index reflects a lower carbon exposure than that of the broad market. It uses MSCI ESG CarbonMetrics data from MSCI ESG Research Inc.

DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

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.