J.P. Morgan Asset Management Expands ETF Lineup with New Active Sustainable ETF: JPMorgan Climate Change Solutions ETF (TEMP)
JPMAM’s first active sustainable ETF strategy combines artificial intelligence (AI), big data and proprietary sector-specific insights to identify companies shaping the future.
NEW YORK, December 14, 2021: J.P. Morgan Asset Management (JPMAM) today announced the launch of JPMorgan Climate Change Solutions ETF (TEMP), the firm’s first active, sustainable ETF. The fund leverages the active insights of JPMAM’s global research and portfolio management teams, a dedicated sustainable investing team and the firm’s proprietary artificial intelligence technology.
George Gatch, Chief Executive Officer, J.P. Morgan Asset Management, comments: “While nearly all sustainable U.S. ETF assets are managed through passive indices, this fund takes an active approach to finding companies that are developing solutions to address climate change. We believe that active management provides a great pathway to achieving clients’ sustainability goals, and TEMP is the first in the series of sustainable, thematic, active strategies we are building to address client demand in this area.”
TEMP invests in companies that JPMAM believes are poised to benefit from growing demand for climate change solutions. This includes companies that are producing less carbon-intensive energy such as wind or solar power; improving the electric grid; investing in less carbon-intensive forms of agriculture, construction, or transportation; or developing technologies to reduce waste.
TEMP will be managed by portfolio managers Francesco Conte, Yazann Romahi and Sara Bellenda, who each bring more than 20 years of industry experience. Consideration of material sustainability factors will continue to be part of the investment decision process, and in consultation with JPMAM’s sustainable investing team, the portfolio managers will engage with companies on material issues.
The fund will use JPMAM’s proprietary natural language processing tool, ThemeBot, to review nearly 13,000 stocks globally, rapidly analyzing tens of millions of data sources. ThemeBot will seek to identify companies globally that are developing tangible solutions to address climate change, to create a universe of potential investments for the fund.
After identifying the potential universe of suitable companies, J.P. Morgan’s team of research analysts around the world will assess the fundamental investment case for each of the stocks, to help the portfolio management team construct a differentiated and high conviction portfolio. As an actively managed ETF, the portfolio managers also have discretion to invest in companies outside of those identified by ThemeBot.
At launch, the fund will have 60-120 holdings.
Bryon Lake, Global Head of ETF Solutions, J.P. Morgan Asset Management, comments: “Investors we talk to are increasingly looking for investment products that will provide meaningful investment opportunities across a range of industries and geographies, and we’re excited to help address our clients’ goals through the launch of TEMP. This active ETF leverages the best of JPMAM’s global active management capabilities to give investors access to purposeful investment opportunities, while pursuing long-term capital appreciation.”
Francesco Conte, Portfolio Manager, International Equity Group, J.P. Morgan Asset Management, comments: “Climate Change is one of the largest systemic challenges we face and addressing it will require meaningful investment and widespread innovation. TEMP harnesses our high conviction investment ideas, focused on company fundamentals, to invest in long-term, quality, sustainable companies that are building the solutions we need to address this monumental challenge.”
TEMP joins JPMorgan Carbon Transition U.S. Equity ETF (JCTR) as a sustainable focused ETF. JCTR offers core exposure to U.S. equities and seeks to capture benefits from the transition to a lower-carbon economy.
The addition of TEMP brings J.P. Morgan Asset Management’s full U.S. suite of ETFs to 39 products with more than $68 Billion in assets under management. J.P. Morgan Asset Management ranks as a top ten ETF issuer in the U.S. with respect to AUM, and number one in net flows across active ETFs in the U.S. for 2021.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of USD 2.7 trillion (as of 30 September 2021), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information: www.jpmorganassetmanagement.com.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had $3.8 trillion in assets and $290.0 billion in stockholders' equity as of September 30, 2021. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA. More information is available at https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/etfs.
Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ETF before investing. The summary and full prospectuses contain this and other information about the ETF and should be read carefully before investing. To obtain a prospectus: Call 1-844-4JPM-ETF.
Climate change solutions strategies may result in investments that underperform the market. Such investments may be negatively impacted by changes in global and regional climates, environmental protection regulatory actions, changes in government standards and subsidy levels, changes in taxation and other domestic and international political, regulatory and economic developments. Because society’s focus on climate change issues is relatively new, the emphasis and direction of governmental policies is subject to significant change, and rapid technological change could render even new approaches and products obsolete. There is a risk that the companies identified by the adviser do not operate as expected when addressing climate changes issues. In addition, there are significant differences in interpretations of what it means for a company to have solutions that address climate change.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
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