JPMorgan Global Research Enhanced Index Equity SRI Paris Aligned UCITS ETF

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 17 Aug 2023

Ticker: JSEG

ISIN: IE000BXC49I6

This fund offers targeted exposure to the global real estate sector, but with a distinct and modern focus on sustainability and climate action. It invests in a portfolio of publicly-traded Real Estate Investment Trusts (REITs) and real estate companies from around the world that meet stringent ethical and environmental criteria. The strategy incorporates both Socially Responsible Investing (SRI) screens, which exclude firms involved in controversial sectors like tobacco or weapons, and a Paris-Aligned framework. This alignment ensures the portfolio is constructed to support the goals of the Paris Agreement, aiming for a significant reduction in greenhouse gas emissions and positioning for a transition to a low-carbon economy.

The investment provides diversified access across various property sub-sectors, such as logistics, data centres, residential, and industrial properties, primarily within developed markets. By physically replicating its benchmark, the fund offers transparent exposure to the underlying assets. For investors, this presents an opportunity to participate in the potential long-term growth and income generation of the global property market, which can serve as a valuable portfolio diversifier and a potential hedge against inflation. The accumulating share class structure is particularly beneficial for long-term growth objectives, as it automatically reinvests dividends to enhance compounding.

This product is specifically designed for investors who wish to integrate their environmental, social, and governance (ESG) values into their asset allocation without sacrificing exposure to the real estate asset class. It is suitable for those seeking a forward-looking strategy that not only taps into a traditionally defensive sector but also prioritises companies that are leaders in sustainability. It can function as a core holding for a socially conscious portfolio or as a satellite allocation to enhance a broader portfolio's green credentials and align it with global climate objectives.