Change to fund name and investment policy – JPM Global Socially Responsible Fund
We have been informed by JPMorgan Funds (“JPM”) that it will be making a change to the name and investment policy of its JPM Global Socially Responsible Fund (the “Fund”) on 25 February 2022 (the “effective date”).
Available in our open-architecture products
The Fund features in our open-architecture products and will be subject to changes detailed in the JPM notification document opposite.
Available in our defined fund range products
The Fund can be found in our defined fund range products Oracle, Paragon, Quantum and RSP (including Malaysia variants).
JPM will make amendments to the Fund's investment policy, specifically relating to the shift in focus from investing only in socially responsible companies to investing in companies with sustainable characteristics. The Fund will invest in a more concentrated portfolio, however it will invest in a broader investment universe which includes emerging markets and China. As a result, there will be concentration, emerging markets, and China risks added to the main risks of the Fund. Investment flexibility will be added to enable investment in small capitalisation companies and therefore smaller companies risk and liquidity risk will also be added to the Fund’s main risks.
The Fund will no longer use negative screening to exclude specific companies, instead it will use an investment process built on stock level analysis by a global research team. It will integrate ESG aspects to identify companies with strong or improving sustainability characteristics.
The benchmark will also be changed to a more widely recognised benchmark that reflects the broader investment universe. A summary of the changes to the Fund’s name and benchmark are detailed in the tables below.
| Current fund name | New fund name |
|---|---|
| JPM Global Socially Responsible A Acc USD | JPM Global Sustainable Equity A Acc USD
|
| Current benchmark | New benchmark |
|---|---|
| ECPI Ethical Index Global (Total Return Net) | MSCI All Country World Index (Total Return Net)
|
JPM have also announced that it will merge its existing JPM Global Sustainable Equity fund into the Fund on the effective date. As a result of the merger, the assets under management of the Fund will increase. JPM believe this will offer better prospects for growth, the potential of which can provide investors with economy of scale and lower fund expenses. Please note the Fund will also go through a rebalancing as a result of the changes to its investment policy listed above.
We have written to all affected plan owners, or their appointed Investment Adviser, to advise them of the above changes and their option for switching to a new fund if they prefer. Servicing Financial Advisers will receive a sample copy of the letter for their information.
You can view a copy of the JPM notification document opposite for a detailed breakdown of all the changes.
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For more information about JPMorgan visit www.jpmorgan.com