Industry Updates

JP Morgan AM carbon transition ETF upgraded to SFDR Article 9

The underlying index is a designated climate transition benchmark

Theo Andrew


JP Morgan Asset Management (JPMAM) has upgraded its carbon transition global equity ETF from Article 8 to 9 under the Sustainable Finance Disclosure Regulation (SFDR).

The JPMorgan Carbon Transition Global Equity UCITS ETF (JCPT) will go ‘dark green’ to highlight the ETF will now invest at least 80% of its assets in sustainable investments as defined under SFDR.

Furthermore, JCPT will change its name – reflecting its underlying index position as a designated climate transition benchmark (CTB) – to the JPMorgan Carbon Transition Global Equity (CTB) UCITS ETF.

Following the switch, which will take effect from 30 September, the ETF will continue to track the JPMAM Carbon Transition Global Equity index.

A JPMAM spokesperson said: “There has been no benchmark switch nor is there any material change to how JPCT is managed or its risk profile as a result of these changes.”

The firm added the ETF includes ESG criteria in investment analysis and investment decisions on at least 90% of its securities.

Currently, the ETF’s top five holdings comprise Apple (5.5%), Microsoft (3.9%), Alphabet (2.9%), Amazon and Tesla (1.5%).

Launched in November 2020, JCPT currently houses $39.5m assets under management (AUM) and has returned 24% since inception.

It is the firm’s second Article 9 ETF in the range alongside the JPMorgan Climate Change Solutions UCUTS ETF (TEMP).

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