"In our view, multi-asset funds with a focus on sustainability take the crown in investment classes."

J.P. Morgan Asset Management Enhances Sustainable Investment Approach

J.P. Morgan Asset Management has taken a significant step in sustainable investing with the launch of the Global Income Sustainable Fund in February this year. The fund, managed by the same portfolio management team as the income classic, aims to deliver sustainable income while integrating ESG (Environmental, Social, and Governance) factors across all active strategies at 100%.

The Global Income Sustainable Fund, however, faces complex ESG integration challenges, particularly for Multi-Asset Funds. This is due to the inconsistent availability of ESG data, especially in emerging markets where data is often coarse, patchy, and lacks local nuances. To address this, investors are encouraged to conduct their own analyses instead of relying solely on third-party ESG data.

J.P. Morgan Asset Management has been integrating ESG factors into its investment process for some time, a move formally recorded in 2016. The systematic consideration of these factors has helped the firm capture potential ESG risks in their risk management tool, Spectrum.

The firm's sustainability approach generally involves integrating ESG criteria and long-term capital market assumptions to build resilient, diversified portfolios. This approach is evident in the Global Income Sustainable Fund, which achieves a higher ESG rating and significantly lower CO2 emissions compared to the average of the multi-asset income investment universe.

The overlap between the sustainable income fund and the income classic is currently around 30%, making them complementary. This means investors can benefit from a diversified approach to sustainable income.

In the realm of sustainable Multi-Asset Funds, Jakob Tanzmeister, a prominent figure in the industry, views these funds as the "king class" of sustainable funds. He highlights the challenge for such funds as the need to consider a wide range of ESG factors across various asset classes. Comparing sustainability characteristics across asset classes is another challenge in sustainable Multi-Asset Funds.

To overcome these challenges, Tanzmeister emphasises the importance of having experts on the ground worldwide and expertise for different asset classes. J.P. Morgan Asset Management, with its global investment platform and experts for all investment regions and asset classes on the ground, is well-positioned to address these challenges.

The firm's commitment to sustainable investing is further demonstrated by the launch of the JPMorgan Equity and Options ETF (JOYT) in 2025. This expansion of their Equity Premium Income Suite offers diversified sources of total return by integrating dividends, options premiums, and capital appreciation with reduced volatility.

Despite the success of the Global Income Sustainable Fund, no specific new multi-asset fund with detailed sustainability implementation for 2025 was found in the search results. Nevertheless, J.P. Morgan Asset Management's dedication to sustainable investing, as demonstrated by their actions and the success of the Global Income Sustainable Fund, remains unwavering.