JPM GLOBAL REI SRI PA UCITS ETF USD DIS

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 40bps

Trading Currency: USD

Pays Income: False

Listing Date: 17 Aug 2023

Ticker: JSGD

ISIN: IE000FYTRRJ6

This investment vehicle offers targeted exposure to the global real estate market, focusing specifically on publicly-traded real estate investment trusts (REITs) and companies from developed countries. The core objective is to deliver long-term capital growth by investing in a portfolio of income-producing property assets across various sectors such as residential, commercial, and industrial. What sets this fund apart is its active design and management approach which integrates stringent sustainability criteria. It is constructed as a Paris-Aligned Benchmark (PAB), meaning it is explicitly designed to be compatible with the long-term decarbonisation goals of the Paris Agreement, providing investors with a tool to allocate capital towards a more climate-resilient real estate sector.

The investment strategy is twofold: capturing the growth and income potential of global real estate while simultaneously adhering to a robust socially responsible investing (SRI) framework. The fund physically holds a basket of securities that represent the underlying real estate market. The portfolio construction process begins with a universe of developed market real estate companies and then applies a series of screens. It excludes companies involved in controversial activities or those that violate norms-based standards. Furthermore, it implements a climate-focused methodology that significantly reduces the portfolio's greenhouse gas intensity and ensures a year-on-year self-decarbonisation trajectory, aligning the investment with a 1.5°C global warming scenario.

This fund is designed for investors who wish to diversify their portfolios with real estate assets, a class known for its potential to generate stable income and serve as an inflation hedge, without the complexities of direct property ownership. It is particularly suitable for those with a strong conviction in sustainable investing, who are looking to align their financial goals with positive environmental outcomes. By investing in this product, individuals can gain access to a professionally managed, globally diversified portfolio of real estate securities that not only seeks financial returns but also actively contributes to the transition towards a low-carbon economy.