Notification of various changes to the underlying fund of R242 - JPM Socially Responsible (USD)
16 Feb 2022
We have been notified by JPMorgan Funds ("JPM") of the following changes to the underlying fund into which the FPIL mirror fund R242 - JPM Socially Responsible (USD) invests:
- A change of the fund’s investment objective and policy to reflect its new focus on investing in global sustainable companies
- A change of the fund's name to JPMorgan Funds – Global Sustainable Equity Fund
These changes will take effect as of 25 February 2022 (the “Effective Date”), and the mirror fund will also be amended accordingly.
| Before the Effective Date | From the Effective Date | |
| Mirror fund name and code | R242 - JPM Socially Responsible (USD) | R242 - JPM Global Sustainable Equity (USD) |
| Underlying Fund name | JPMorgan Funds - Global Socially Responsible Fund | JPMorgan Funds – Global Sustainable Equity Fund |
Please see the table below for a summary of the changes to the underlying fund and mirror fund. A copy of the JPMorgan shareholder notification document with full details can also be viewed opposite.
| Before the Effective Date | From the Effective Date | |
| Objective | To provide long-term capital growth by investing primarily in companies globally that the Investment Manager believes to be socially responsible. | To provide long-term capital growth by investing primarily in global Sustainable Companies or companies that demonstrate improving sustainable characteristics. Sustainable Companies are those that the Investment Manager believes to have effective governance and superior management of environmental and social issues (sustainable characteristics). |
| Investment Approach | Uses a fundamental bottom-up stock selection process. Investment process built on leveraging the insights of a global analyst team to identify attractively valued companies using a quality and growth framework. Uses negative screening to exclude specific companies. Companies from remaining sectors are assessed for certain corporate, social and environmental attributes prior to inclusion. | Uses a fundamental bottom-up stock selection process. Investment process built on stock level analysis by a global research team. Integrates ESG aspects to identify companies with a strong or improving sustainability characteristics. |
| Main Investment Exposure | At least 67% of assets invested in equities of socially responsible companies anywhere in the world. Socially responsible companies are expected to work towards high standards of corporate, social and environmental responsibility and environmental sustainability, develop positive relationships with their shareholders, and uphold and support universal human rights. At least 51% of assets are invested in companies with positive environmental and/or social characteristics that follow good governance practices as measured through the Investment Manager’s proprietary ESG scoring methodology and/ or third party data. The Investment Manager evaluates and applies values and norms based screening to implement exclusions. To support this screening, it relies on third party provider(s) who identify an issuer’s participation in or the revenue which they derive from activities that are inconsistent with the values and norms based screens. The list of screens applied that may result in exclusions can be found on the Management Company’s Website (www.jpmorganassetmanagement.lu). The Fund systematically includes ESG analysis in its investment decisions on at least 90% of securities purchased. | At least 67% of assets invested in equities of Sustainable Companies or companies that demonstrate improving sustainable characteristics anywhere in the world, including emerging markets. The Fund may be concentrated in a limited number of securities from time to time. The Fund may invest in small capitalisation companies. The Fund may invest in China A-Shares through the China-Hong Kong Stock Connect Programmes. Sustainable Companies and companies that demonstrate improving sustainable characteristics are selected through the use of proprietary research and third party data. Fundamental analysis is used to better understand sustainability risks and opportunities that may impact a company. This analysis is also an important driver behind active company engagement when seeking to positively influence business practices to improve sustainability. The Fund systematically includes ESG analysis in its investment decisions on at least 90% of securities purchased. |
| Investor Profile | Investors who understand the risks of the Fund, including the risk of capital loss, and: - seek long-term capital growth through exposure to global equity markets; - seek an equity strategy managed along ethical lines; - are looking to use it as part of an investment portfolio and not as a complete investment plan. | Investors who understand the risks of the Fund, including the risk of capital loss, and: - seek long-term capital growth through exposure to global equity markets; - seek an investment that embeds ESG principles; - are looking to use it as part of an investment portfolio and not as a complete investment plan. |
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
