Notification of changes to various JPMorgan funds
15 Apr 2025
- L95 JPM Global Sustainable Equity
- Z55 JPM Global Sustainable Equity*
- R61 JPM Emerging Markets Small Cap
- Z54 JPM Emerging Markets Small Cap*
- L18 JPM Global Growth
- J42 JPM USD Money Market VNAV
(Together the “Affected Mirror Funds")
We have been notified by JPMorgan Asset Management (the “Company”) of changes to the underlying funds of the Affected Mirror Funds named above. The changes will take effect from 17 April 2025 (the “Effective Date”).
Background
The European Securities and Markets Authority , the EU’s financial markets regulator and supervisor, published guidelines on funds’ names using Environmental, Social and Governance ("ESG") or sustainability-related terms (the “Guidelines”) on 14 May 2024. According to the Guidelines, any underlying fund containing Sustainability-related terms, including Sustainable in their name are required to:
- Meet an 80% committed minimum to investments with positive environmental/social characteristics.
- Apply EU Paris-Aligned Benchmark exclusions as referred to in Article 12(1)(a) to (g) of CDR (EU) 2020/1818, and
- Meet a 50% committed minimum to sustainable investments
Underlying funds containing “environmental-related terms”, including “ESG”, in their name are required to:
- Meet an 80% committed minimum to investments with positive environmental/sustainable characteristics, and
- Apply EU Paris-Aligned Benchmark exclusions as referred to in Article 12(1)(a) to (g) of CDR (EU) 2020/1818.
With the above in mind, the underlying fund of L95 and Z55* JPM Global Sustainable Equity (USD) will change the committed minimums as follows:
| Committed Minimums | Before Effective Date | From Effective Date |
|---|---|---|
| Environmental/social characteristics | 67% | 80% |
| Sustainable investments | 40% | 50% |
Update to the ESG Exclusions policies of the underlying funds of the Affected Mirror Funds.
The relevant investment managers apply values and norms-based exclusions policies to all underlying funds that promotes environmental and/or social characteristics as defined under Article 8 of the EU’s Sustainable Finance Disclosure Regulation (“SFDR”). These policies set revenue threshold limits or apply full exclusions on certain industries and/or issuers based on specific ESG criteria and/or minimum standards of business practice based on international norms.
The exclusions policies are based on a minimum over-arching set of exclusions based on underlying frameworks which are reviewed periodically. The frameworks underlying these exclusions have been updated to consider evolving regulatory requirements, data availability and shareholder expectations. The changes therefore ensure that the underlying funds of the Affected Mirror Funds, using ESG or sustainability-related terms comply with the requirements set out by the Guidelines mentioned above.
As of the Effective Date, the exclusion policies of the underlying funds of the Affected Mirror Funds will be updated to correspond. Updated pre-contractual disclosure documents will be made available as part of the prospectus of the underlying funds following the Effective Date.
These changes will take effect automatically and policyholders do not need to take any action as a result of this communication.
Should you have any questions regarding this notification, please contact the Investment Marketing Team.
*Fund applicable to Hong Kong designated policyholders. Hong Kong designated policyholder assets were moved into new fund code prefix funds as part of regulatory requirements to segregate Hong Kong designated assets from other jurisdictions.
