JP Morgan Asset Management (JPMAM) has rolled out two Article 9 exchange-traded funds (ETFs) under the EU’s Sustainable Finance Disclosure Regulation (SFDR). The JP Morgan Global Research Enhanced Index Equity SRI Paris Aligned UCITS ETF and JPMorgan US Research Enhanced Index Equity SRI Paris Aligned UCITS ETF are the latest expansion to its US$7 billion Research Enhanced Index (REI) equity ETF platform. Through the REI platform, portfolio managers have access to the insights of more than 90 research analysts, that cover approximately 2,500 securities globally. JPMAM has partnered with MSCI to create the two custom Article 9 sustainable indices for clients that adopt an inclusionary approach and comply with the EU’s Paris-aligned benchmark criteria. The ETFs will have 50% less greenhouse gas intensity than the parent universe, as well as decarbonise by 7% on average year on year, while leveraging JPMAM’s REI active investment process to choose companies that will outperform over time. Travis Spence, Head of ETF Distribution in EMEA at JPMAM, said: “Clients are increasingly seeking solutions to meet their sustainability objectives, and [these ETFs] are designed to deliver a dual outcome: to outperform a custom universe of sustainable companies by using our REI investment process, while achieving a decarbonization objective in line with the Paris Agreement.”
