JPMorgan Japan Research Enhanced Index Equity (ESG) UCITS ETF USD (Dist)

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 05 Apr 2022

Ticker: JRIE

ISIN: IE00005YSIA4

This fund offers a strategic approach to investing in the Japanese stock market, aiming to deliver returns that exceed the broad TOPIX benchmark. Rather than simply replicating an index, this fund employs an active, research-driven strategy. The core of its approach lies in a proprietary stock selection process that systematically analyzes a wide universe of Japanese companies to identify those with the most promising prospects. This process combines quantitative analysis with fundamental research, seeking to build a portfolio with superior characteristics compared to the broader market.

The investment team evaluates companies based on multiple factors, including valuation, quality, and momentum, aiming to construct a diversified portfolio that is tilted towards stocks with the potential for outperformance. Concurrently, the fund integrates a robust Environmental, Social, and Governance (ESG) framework. This involves screening out companies with significant involvement in controversial industries like thermal coal, tobacco, and certain weapons manufacturing. By embedding sustainability criteria into its investment process, the fund seeks to mitigate ESG-related risks and align with the values of socially conscious investors.

This investment vehicle is designed for those looking for a core holding in Japanese equities but desire a more refined strategy than a traditional passive tracker. It provides a means to access the potential of Japan's corporate sector while benefiting from active management's pursuit of alpha and the added layer of ESG-focused risk management. The fund maintains a risk profile similar to its benchmark, making it a suitable component for a diversified global portfolio.