JPM Global Research Enhanced Index Equity (ESG) UCITS ETF USD (acc)
| Issuer: JPMorgan ETF |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 16 Oct 2018 |
| Ticker: JGRE |
| ISIN: IE00BF4G6Y48 |
This fund offers an actively managed approach to global equity investing, aiming to deliver long-term capital growth by outperforming the MSCI World Index. The strategy is centered around a Research Enhanced Index (REI) methodology, which combines the discipline of a rules-based process with the insights of fundamental analysis. It starts with the broad universe of global developed market stocks and systematically evaluates each company based on proprietary research signals. This process seeks to identify companies that are attractively valued and possess strong fundamental characteristics, while maintaining a risk profile closely aligned with that of the broader market.
The core of the investment process involves building a portfolio that moderately overweights stocks with positive outlooks and underweights or avoids those with less favorable prospects. This active management seeks to generate alpha, or excess returns, above the benchmark, distinguishing it from purely passive index-tracking funds. The portfolio remains well-diversified across various sectors and geographies, providing core exposure to the global equity market while benefiting from the potential value added by the manager's security selection expertise. By keeping tracking error controlled, the fund aims to provide a consistent return profile relative to its benchmark.
A key feature of the strategy is the integration of Environmental, Social, and Governance (ESG) factors. The fund applies both negative screens, excluding companies involved in controversial sectors like thermal coal and controversial weapons, and positive tilts towards companies with superior ESG profiles. This dual-focus on active fundamental research and responsible investing principles may appeal to those looking for a core global equity holding that aims not only for outperformance but also aligns with sustainability objectives.
