JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF · LSE:JPCT
JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF — JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF — Investor Presentation (April 2023)
37 slides from JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF's investor presentation, April 2023
Slide 1: Prepare for a low carbon world
Prepare for a low carbon world JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF (JPCT *) April 2023 This is a marketing communication. Please refer to the prospectus and to the KID or KIID before making any final investment decisions. For Professional Clients and Qualif
Slide 2: Executive Summary
Executive Summary JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF (JPCT*) ● To respond to climate change, the transition to a low carbon economy will impact companies, portfolios, and investors. EXPERTISE ● Our clients will have to respond to new regulations and guidel
Slide 3: Preparing your portfolio for the carbon transition
Preparing your portfolio for the carbon transition Global Temperature Have Already Risen Policy Response Will Impact Businesses Global Land and Ocean Temperature Anomalies The transition to a low carbon economy will require: (Degrees Celsius) 1.4 1.2 1.0 0.8 0.6 0.4 Fewer More 0.2 Fossil Fuels Green
Slide 4: Carbon pricing initiatives will have an impact well beyond the energy sector
Carbon pricing initiatives will have an impact well beyond the energy sector Global emissions covered by carbon Global greenhouse gases pricing initiatives emissions by sector % of global greenhouse gas emissions % of global greenhouse emissions (2016), CO2 equivalent tonnes Other energy Chemicals/c
Slide 5: Bringing the key capabilities of JPMAM to carbon transition investing
Bringing the key capabilities of JPMAM to carbon transition investing J.P. Morgan’s Sustainable Investing and Quantitative Solutions teams partner closely in developing carbon transition solutions for clients Sustainable Investing Team Quantitative Solutions ● Dedicated, global team reporting to ● P
Slide 6: Building the portfolio
Building the portfolio Security Selection Portfolio Construction Evaluate companies across the three pillars, backed by proprietary Overweight sustainable research Companies that are positioned to benefit Underweight Companies facing greater risks Maintain Region and sector exposures in-line with a
Slide 7: What does JPCT* aim to deliver?
What does JPCT* aim to deliver? Low Tracking Error Lower Carbon Intensity De-carbonization Competitive Fees Tracking Error of around At least a 30% reduction in carbon 7% year-over-year TER of 0.19% 1% to MSCI World intensity vs. MSCI World self-decarbonisation 70% 0.19% 7% ~1% Tracking Error Reduct
Slide 8: Portfolio
Portfolio 8 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 9: Greenhouse Gas Emissions Reporting
Greenhouse Gas Emissions Reporting Emissions Reporting: MSCI ACWI Index % Companies Reporting % Market Cap Reporting Defining the Three Scopes 100% ● Scope 1 Emissions: Direct emissions generated on site, for example, at company facilities or via company vehicles. 90% ● Scope 2 Emissions: Indirect e
Slide 10: How can we identify companies well positioned for this transition?
How can we identify companies well positioned for this transition? Proprietary evaluation framework evaluates transition readiness across three key pillars Emissions Resource Management Risk Management Site Emissions Electricity Management Physical Risk Reduce direct emissions and shift Reduce indir
Slide 11: Proprietary Scoring Framework: Example Metrics
Proprietary Scoring Framework: Example Metrics Indicator Example Metrics Scope 1 Emissions Site Emissions Fossil Fuel Use Proprietary Framework Emissions Renewable Energy Production Scope 3 Emissions Consumer ● Identifies companies well Emissions & Low Carbon Patents positioned for the transition Op
Slide 12: Identifying climate change solutions providers
Identifying climate change solutions providers Using alternative data sources to identify opportunities Identify Less Carbon-Intense Alternatives Improve Resource Efficiency Renewable Energy Recycling & Re-Use Energy generated from clean and renewable resources Environment friendly technologies to r
Slide 13: ThemeBot: Combining Artificial Intelligence with Big Data
ThemeBot: Combining Artificial Intelligence with Big Data Use of machine learning capabilities via J.P. Morgan Asset Management’s proprietary ThemeBot tool to identify companies focused on the technologies spearheading a low carbon economy – and potential opportunities for innovation and future grow
Slide 14: Proprietary Materiality Framework
Proprietary Materiality Framework Not every sector is impacted by the carbon transition in the same way. We use a proprietary framework to evaluate the materiality of each metric across sub-sectors Less More Emissions Resource Management Risk Management Material Material Consumer Site Indirect Water
Slide 15: Results
Results 15 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 16: Carbon Transition Results
Carbon Transition Results Meaningful Reduction in Carbon Emissions Similar Returns: Core Equity Exposure Weighted Average Carbon Intensity Cumulative Returns: Since December 2016 Inception MSCI World Index JPMAM Carbon Transition Global Equity Index JPMAM Carbon Transition Global Equity Index MSCI W
Slide 17: Performance
Performance JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF* Market Value 30 April 2023 USD 687.9m Performance (%) One Three One Three Five Since YTD Month Months year years years Inception** JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global 2.0% 3.2% 10.3% 3.0%
Slide 18: Performance attribution for one year ending April 2023
Performance attribution for one year ending 30 April 2023 Sector attribution (%) Comparative MSCI World Index Benchmark (Total Return Net) 0.5 0.38 0.21 0.12 0.06 0.0 -0.03 -0.06 -0.07 -0.12 -0.20 -0.22 -0.5 -0.32 Financials Discretionary Health Care Real Estate Industrials Energy Communication Mate
Slide 19: JPMAM for Carbon Transition
JPMAM for Carbon Transition Building stronger portfolios for a low carbon world Proprietary Comprehensive Portfolio insights approach outcome ● In-house sustainable investing insights ● EU Carbon Transition Benchmark compliant ● Meaningful reduction in carbon intensity – without exclusions or sector
Slide 20: J.P. Morgan's Commitment to Sustainability
J.P. Morgan’s Commitment to Sustainability 20 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 21: What is the Net Zero Asset Managers Initiative (NZAMI)?
What is the Net Zero Asset Managers Initiative (NZAMI)? The Net Zero Asset Managers Initiative (NZAMI) commits signatories to align emissions from their in-scope portfolios to net zero by 2050 Three levers for J.P. Morgan Asset Management to Signatories commit to: fulfil this Work with asset owner c
Slide 22: Our sustainable investment platform is built around four key pillars
Our sustainable investment platform is built around four key pillars Data & Research Company engagement We continuously seek to enhance Our corporate engagement our understanding of sustainable work focuses on promoting good investing through forward-looking investment stewardship research Sustainab
Slide 23: Exclusions
Exclusions The fund reflects many of the shared environmental, social and governance values of our clients through the exclusion of certain industries and activities. As shown, we fully exclude some industries and apply maximum percentage thresholds to others, which can vary depending on whether the
Slide 24: Appendix
Appendix 24 FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY | NOT FOR RETAIL USE OR DISTRIBUTION
Slide 25: Carbon Transition China Equity Index: Results
Carbon Transition China Equity Index : Results CHINA EQUITY: CUMULATIVE RETURNS MEANINGFUL REDUCTION IN CARBON EMISSIONS Cumulative Returns Weighted Average Carbon Intensity 180 30 160 Benchmark WACI Portfolio WACI 140 25 120 39% 20 reduction 100 80 15 currently 60 Jul-19 Jul-20 Jul-21 Jul-22 Jan-20
Slide 26: AMS Quantitative Solutions: Access to factor and quantitative solutions
AMS Quantitative Solutions: Access to factor and quantitative solutions THEMATICS STRATEGIC BETA ALTERNATIVE BETA Long-only Long-only Long-short Equities Equities Risk Premia (Style investing & Hedge Fund based) Utilizes artificial intelligence to build portfolios Utilizes different weighting framew
Slide 27: AMS Quantitative Solutions: Investment team
AMS Quantitative Solutions: Investment team George Gatch, CEO, J.P. Morgan Asset Management Jed Laskowitz, CIO and Global Head of Asset Management Solutions (AMS) Related Functions GFICC Quantitative Solutions AMS Quantitative Solutions AMS Core Beta Solutions Eric Isenberg, Head of Quantitative Sol
Slide 28: Key Climate-Related Terms and Definitions
Key Climate-Related Terms and Definitions ● Greenhouse gases – such as carbon dioxide, methane, nitrous oxide, and others – make up a small percentage of Earth’s WHAT ARE atmosphere but play a significant role in regulating the temperature of the planet. Because of their chemical make-up, these gase
Slide 29: Customising our Carbon Transition approach
Customising our Carbon Transition approach Scalable Investment Framework Ability To Customise Evaluate companies across the three pillars, backed by proprietary Starting Universe sustainable research Carbon Intensity Exclusions A range of inputs and parameters can be adjusted to meet specific Tracki
Slide 30: Key Facts and Trading Information
Key Facts and Trading Information JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF (JPCT*) Expertise Benchmark Index: JPMAM Carbon Transition Global Equity Index Proprietary research framework developed by Benchmark Ticker: JPMIGCTN our Sustainable Investing Team and Qu
Slide 31: EU Sustainable Benchmark Regulations
EU Sustainable Benchmark Regulations The EU Commission has defined two standard benchmarks to benchmark assets for low-carbon and climate resilient economy Background Minimum Standards for EU Sustainable Benchmarks The European Commission has introduced minimum standards to help CTB PAB benchmark ad
Slide 32: Key personnel
Key personnel Yazann Romahi Yazann Romahi, PhD, CFA, managing director, is CIO for Quantitative Beta Strategies focused on further developing the firm's factor-based franchise across both alternative beta and strategic beta. Prior to that he was Head of Research and Quantitative Strategies in Multi
Slide 33: Investment objective and main risks
Investment objective and main risks JPMorgan ETFs (Ireland) ICAV - Carbon Transition Global Equity (CTB) UCITS ETF (JPCT *) KEY RISKS INVESTMENT OBJECTIVE • The value of your investment may fall as well as rise and you may get back less than you originally invested. The Sub-Fund seeks to provide ret
Slide 34: Important information
Important information * For Belgium only: Please note this ETF(*) is not registered in Belgium and can only be accessible for professional clients. Please contact your J.P. Morgan Asset Management representative for further information. The offering of Shares has not been and will not be notified to
Slide 35: Important information
Important information FOR PROFESSIONAL CLIENTS / QUALIFIED INVESTORS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment
Slide 36: Important Notes
Important Notes Confidential: Not for retail use or further distribution This document is meant for informational purposes only and is intended solely for the person to whom it is delivered. It is confidential and may not be reproduced or distributed, in whole or in part, to any third parties and in
Slide 37: Important Notes (Continued)
Important Notes (Continued) Brunei: This material is provided in response to your request. It relates to a private collective investment scheme which is not subject to any form of domestic regulations by the Autoriti Monetari Brunei Darussalam (“Authority”). This material or prospectus is intended f