JPM Climate Change Solutions

This fund is no longer Elite Rated

As the name suggests, the JPM Climate Change Solutions fund invests in companies that are developing solutions required to address climate change. The fund is a high-conviction thematic portfolio that is not constrained by the index. The key themes it seeks to tackle are renewables & electrification, sustainable transport, sustainable food & water, sustainable construction, and recycling & re-use.

Our opinion

One of the strengths of this fund is that it is unconstrained by region, sector, and market capitalisation. This allows the managers to access a much wider universe to extract value. It is also aided by a strong management team that can leverage upon an impressive and innovative internal AI system called ‘Themebot’ that will undoubtedly help drive a more efficient process and help them find opportunities.

Fund manager

There are three portfolio managers on the strategy: Francesco Conte, Yazann Romahi and Sara Bellenda. Francesco Conte is the lead portfolio manager and is ultimately responsible for all decisions taken in the fund. Day-to-day, Francesco will work in partnership with Sara, an equity portfolio manager with a strong background in the real estate sector, and Yazann, who is responsible for the artificial intelligence component of the portfolio construction.

Francesco Conte has been a JP Morgan employee since 1998, having previously been the lead analyst within the Italian equities team at Schroder Securities. Francesco obtained a BSc in Economics from the London School of Economics and Political Science.​

Francesco ConteFund manager

Investment process

The Climate Change Solutions portfolio combines AI, big data, and active equity research to build a data-driven and sustainable portfolio.

The starting investment universe comprises more than 13,000 securities across developed and emerging markets.

The process begins with the use of the ThemeBot investment engine, which employs natural language processing and big data to scan millions of sources such as company reports, research, earnings transcripts, and news articles. This helps identify companies that are most exposed to the climate change theme.

An evaluation by the team then considers factors such as the attractiveness of the business, including its economic value creation, sustainability, and governance. Quantitative and fundamental valuation analysis is also conducted to determine the appropriate price to pay for the securities. The sustainable investing team contributes its expertise in sustainable research, evaluating objectives, and engaging with relevant stakeholders.

The portfolio is further strengthened by its alignment with sustainability outcomes. Portfolio managers collaborate with the sustainable investing team to ensure the portfolio addresses key sustainability challenges.

ESG

ESG - Explicit
A global ESG framework has been implemented, incorporating quantitative and fundamental scores based on key ESG factors and a proprietary checklist. Independent research from providers like MSCI complements internal analysis. The focus is on the proprietary global ESG framework, emphasising red flags to identify potential ESG risks and drive engagement with companies. The investment stewardship team engages with portfolio companies on governance, environmental oversight, and social matters. Analysts, portfolio managers, and the stewardship team conduct meetings, interviews, and site visits. Red flags prompt engagement to seek information or address deficiencies in board oversight and management control. The research framework includes a 40-question ESG checklist applied to over 3,000 globally covered companies, covering environmental, social, and governance aspects.

Risk

Dedicated risk managers help manage investment risks. They also proactively engage with companies and have stewardship activities that focus on helping companies to recognise significant risks.

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Read more about this fund

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