The new platform aims to offer a diverse range of fully-customizable products for institutions and distributors looking to deploy capital in ESG-focused investments, according to JP Morgan.
“We have seen first-hand the rapid rise in demand for ESG-based products, as clients realise that the returns can be just as rewarding as with traditional products,” said Tim Throsby, global head of equities at JP Morgan.
“In what has previously been a fragmented market, this platform is designed to allow clients to choose from a wide range of benchmark indices and bespoke portfolios across asset classes. We expect it to open up a whole new investment base for companies that demonstrate strong ESG credentials, and bring opportunities for investors,” he added.
JP Morgan is partnering with S&P Dow Jones in connection with the launch to develop the new range of indices. “We are proud to be a part of the JP Morgan Ethos Investments platform by providing a range of new climate change and ESG indices to it, starting with the upcoming launch of the S&P Europe 350 Climate Change LVHD Index,” said Alex Matturri, CEO of S&P Dow Jones Indices.
JP Morgan is also partnering with the World Bank at launch. Heile Reichelt, head of investor relations and new products at the World Bank, said: "The World Bank (IBRD) issues bonds to finance development activities that achieve a positive social impact in its member countries."
"JPM’s new sustainable investments platform is a welcome addition to expanding opportunities for investors who are looking to do well financially, while supporting investments that have a positive impact."
The assets are selected for their environmental, social and governance track record, via JP Morgan’s partnerships with specialist index providers and asset managers. Investors can choose between passive indices, actively managed funds and bespoke portfolios, across equity, credit and fixed income.
Green and social bonds issued by supranational and corporate entities will also be included, to combine principal protection and equity-linked upside potential, JP Morgan said in a statement.