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.
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.