JPM have run the Global Macro Fund for several years, but this is a spin-off with a focus on sustainability. The aim of the strategy is to defend capital when needed, and over a medium time frame deliver meaningful performance. The argument for using this is that in a period where fixed income is becoming more challenged and where markets will become more volatile, this is an alternative route for investors. The other angle is sustainability which has seen increased flows. This was launched in 2019, initially attracting assets in the Nordic Countries before spreading across Europe and the UK.
The drivers are to identify sustainable macro drivers and then focus on ESG Leaders and exclude unsustainable industries. As an example, they will identify structural changes then assess the macro and micro implications before looking at the size of the opportunity.
The secular themes include renewable power, transport and energy efficiency and transport. In terms of research, each industry has its own framework for reviewing. As an example, industrials include corporate governance, data security, business ethics, product quality and safety, energy management, waste and hazardous material, product design and lifestyle and material sourcing and efficiency….read more