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J.P. Morgan Asset Management

PRI reporting framework 2020

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
Corporate (financial)
Corporate (non-financial)
Securitised
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

We adopt a positive engagement approach to ESG integration: generally, specific sectors or securities are not automatically excluded from portfolios unless the following conditions apply:

  • The product requires the incorporation of negative screening
  • A client has specifically requested exclusions in a separate account
  • Local laws or regulations apply

We uses several third-party data providers to screen when exclusions apply – the relevant information feeds directly into our internal guidelines system, allowing automatic exclusion from portfolios where required.

Furthermore, in 2019 we launched an explicitly sustainable version of one of our flexible global bond strategies, called the JPMorgan Funds – Global Bond Opportunities Sustainable Fund. This strategy invests across all fixed income sectors (SSA, corporate and securitised) and applies ESG integration, exclusions (both norms- and values-based) and a positive tilt screening. The launch of this strategy exhibits our capability in managing a variety of sustainable styles across all types of bond markets.

04.3. Additional information. [Optional]

Our systems receive the screening data regularly and systematically prevent investments which do not meet client and/or portfolio guidelines. Criteria can be based on business involvement, impact monitoring and other indicators when requested by clients in segregated mandates. These include but are not limited to: environmental controversy, global defence/weapons, animal abuse, human life, nuclear, traditional sin restrictions, country involvement and violations of laws and regulations. For some ESG portfolios, screening takes place based on a severity based rating scale, for example, a 5% revenue threshold.

We also manage client accounts seeking positive social benefit using a best-in-class approach, buying corporates with ESG scores of average or better and investing in SSA and securitized issues on thematic grounds including Green Bonds and securitized bonds focused on providing financing for low income housing, for example.


FI 05. Examples of ESG factors in screening process (Private)


FI 06. Screening - ensuring criteria are met

06.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening
Positive/best-in-class screening

06.2. Additional information. [Optional]

Where ESG factors are coded within guidelines, they are regularly reviewed by standard oversight practices.


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