This report shows public data only. Is this your organisation? If so, login here to view your full report.

J.P. Morgan Asset Management

PRI reporting framework 2020

serch-btn
Organisational Overview
Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]
Strategy and Governance
Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]
Indirect – Manager Selection, Appointment and Monitoring
Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]
Direct - Listed Equity Incorporation
ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG factors [LEI 08 - 10] Outputs and outcomes [LEI 12 - 13]
Direct - Listed Equity Active Ownership
Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]
Direct - Fixed Income
ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (A) Implementation: Screening [FI 04 - 06] (B) Implementation: Thematic [FI 07 - 09] (C) Implementation: Integration [FI 10 - 12] Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]
Direct – Private Equity
Overview [PE 01 - 02] Fundraising of private equity funds [PE 03 - 04] Pre-investment (selection) [PE 05 - 08] Post-investment (monitoring) [PE 09 - 13] Outputs and outcomes [PE 14 - 15] Communication [PE 16]
Direct - Property
Overview [PR 01] Fundraising of property funds [PR 02 - 03] Pre-investment (selection) [PR 04 - 06] Selection, appointment and monitoring third-party property managers [PR 07] Post-investment (monitoring and active ownership) [PR 08 - 14] Overview [PR 08] Property monitoring and management [PR 09 - 10] Property developments and major renovations [PR 11] Occupier engagement [PR 12 - 13] Community engagement [PR 14] Outputs and outcomes [PR 15 - 16]
Direct - Infrastructure
Overview [INF 01 - 02] Fundraising of infrastructure funds [INF 03 - 04] Pre-Investment (Selection) [INF 05 - 09] Selection, appointment and monitoring of third-party infrastructure operators [INF 10] Post-investment (monitoring and active ownership) [INF 11 - 16] Overview [INF 11] Infrastructure Monitoring and Operations [INF 12 - 14] Infrastructure Maintenance [INF 15] Stakeholder engagement [INF 16] Outputs and outcomes [INF 17 - 18] Communication [INF 19]
Confidence building measures
Confidence building measures [CM1 01 - 07]
Export Public Responses
Pdf-img

You are in Strategy and Governance » Asset class implementation not reported in other modules

Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved
Hedge funds - DDQ

Select whether you have responded to the PRI Hedge Fund DDQ

Hedge funds

J.P. Morgan Alternative Asset Management (JPMAAM) Hedge Funds and Alternative Credit has formalized our consideration of ESG factors throughout our due diligence process. We have developed a list of factors across environmental, social and governance, and, where they weren’t already included, are incorporating questions based on these factors formally into our due diligence reports. Throughout our history we have incorporated ESG-related considerations into our process, so the majority of these questions were already being asked.
Money market instruments

Our Global Liquidity team partners with our colleagues in GFICC to assemble an array of analytical resources, and these analysis allow us to utilize both top-down and bottom-up approaches to converge on assets providing good risk-adjusted returns. As part of our security selection strategy, investment teams evaluate whether sustainability issues could materially impact the cash flows or risk profiles of the many companies in the investable universe. And while no issuer or specific asset is excluded from portfolios based on ESG criteria—unless mandated by regulation or requested by clients—these factors could either expand or limit the ability to invest in a company or asset if an E, S, or G component changes the fundamental outlook.

We utilize an ESG ratings service to provide adept, objective opinions related to sustainability issues, and those specific ESG ratings are used in conjunction with our proprietary analytics and fundamental credit ratings. These ratings are supplied to our portfolio management teams through a combination of research and trading systems to better inform investment decisions. Additionally, our Global Liquidity investment governance committee combines these rating reports into its monthly meeting agenda, where both notable portfolios and individual securities are examined for ESG ratings quality

Other (1) [as defined in Organisational Overview module]

Multi-Asset Solutions (MAS) is a diversified fund of funds manager which leverages the underlying investment capabilities of the global asset management business.

Currently, the incorporation of ESG considerations is a functionof the various platforms with which we invest and our managerresearch process serves as a central point of reference to understand each platform’s ESG philosophy within the context of their stated investment process. Our MAS Manager Researchteam takes a holistic approach to ESG integration across thewhole portfolio, focusing on understanding the different approaches adopted by managers across the platform and developing appropriate questions to monitor the consideration of ESG risks. Manager updates are recorded on the research database in our portfolio management system, Spectrum and leveraged by the research and portfolio management teams. Changes in ESG scoring over time are monitored and raised in discussions with underlying managers.

Multi-Asset Solutions does not currently incorporate sociallyresponsible factors into our strategic or tactical assetallocation approach at the present time, but we are currentlyworking toward formal integration status by developing aprocess which explicitly incorporates ESG risks into ourstrategic manager selection decisions, with expectedcompletion in the very near future.

16.2. Additional information [Optional].

We believe that this increased consideration of ESG factors in our investment process can help reduce risk and ensure sustainability of returns.
After asking these questions of managers throughout our due diligence process, we actively engage them on a range of issues that may include social, environmental and governance concerns. We view good environmental, social and governance practices as a pre-requisite for responsible investing, but also as a tool to help mitigate potential risks and conflicts. We work closely with our managers to help them improve on ESG factors where we believe they are lacking, providing guidance and support to help them achieve best-in-class practices.
After being examined and potentially improved during the due diligence process, these ESG factors will be reviewed by JPMAAM’s Investment Committee, and any red flags will be thoroughly discussed. ESG factors identified as part of this process are considered as part of the decision to invest in a new manager, remain invested with an existing manager, or terminate a manager.

We also partner with clients to address their specific ESG needs. Currently, specific funds, assets or types of assets are not automatically excluded explicitly on social, environmental, or ethical criteria unless specifically requested by clients orrequired by local legislation. However, JPMAAM has the ability to work with clients in a variety of ways to incorporate their ESG preferences, from exclusions-based (SRI) mandates to ESG thematic.

SG 17. ESG issues for externally managed assets not reported in framework

17.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved
Hedge funds - DDQ (Fund of Hedge Funds)

Select whether you use the PRI Hedge Fund DDQ

Fund of hedge funds

J.P. Morgan Alternative Asset Management (JPMAAM) Hedge Funds and Alternative Credit has formalized our consideration of ESG factors throughout our due diligence process. We have developed a list of factors across environmental, social and governance, and, where they weren’t already included, are incorporating questions based on these factors formally into our due diligence reports. Throughout our history we have incorporated ESG-related considerations into our process, so the majority of these questions were already being asked.

17.2. Additional information.

We believe that this increased consideration of ESG factors in our investment process can help reduce risk and ensure sustainability of returns.
After asking these questions of managers throughout our due diligence process, we actively engage them on a range of issues that may include social, environmental and governance concerns. We view good environmental, social and governance practices as a pre-requisite for responsible investing, but also as a tool to help mitigate potential risks and conflicts. We work closely with our managers to help them improve on ESG factors where we believe they are lacking, providing guidance and support to help them achieve best-in-class practices.
After being examined and potentially improved during the due diligence process, these ESG factors will be reviewed by JPMAAM’s Investment Committee, and any red flags will be thoroughly discussed. ESG factors identified as part of this process are considered as part of the decision to invest in a new manager, remain invested with an existing manager, or terminate a manager.

We also partner with clients to address their specific ESG needs. Currently, specific funds, assets or types of assets are not automatically excluded explicitly on social, environmental, or ethical criteria unless specifically requested by clients orrequired by local legislation. However, JPMAAM has the ability to work with clients in a variety of ways to incorporate their ESG preferences, from exclusions-based (SRI) mandates to ESG thematic.
Previous Section Next Section
Top