JPMorgan Carbon Transition Global Equity UCITS ETF (acc)

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 19bps

Trading Currency: USD

Pays Income: False

Listing Date: 11 Nov 2020

Ticker: JPCT

ISIN: IE00BMDWYZ92

This fund offers exposure to a global equity portfolio designed to address climate change risks and opportunities by tracking a proprietary index that systematically aligns with the goals of the Paris Agreement. The strategy is built on a forward-looking, science-based framework that analyzes how companies are managing their carbon emissions and positioning themselves for a low-carbon economy. It seeks to provide a core equity holding for investors who want to align their portfolios with the global transition towards net-zero emissions while maintaining broad market exposure.

The underlying index reweights constituents of a broad global equity universe based on their carbon transition readiness. This involves assessing factors such as current emissions intensity, efforts to reduce emissions, and the management of climate-related risks and opportunities. Companies that are leaders in the carbon transition receive higher weights, while those lagging are underweighted or excluded. This approach results in a portfolio with a significantly lower carbon footprint compared to traditional global equity benchmarks, without making significant sector or regional bets, thus preserving diversification benefits.

By investing in this product, individuals can gain access to companies that are not only contributing to a sustainable future but may also be better positioned for long-term growth in a carbon-constrained world. The strategy provides a rules-based and transparent way to invest thematically in the climate transition, offering the potential for both positive environmental impact and competitive financial returns.