JP Morgan Alternative Asset Management (JPMAAM) has launched its multi-manager sustainable long-short fund worth $100 million, media reports said. The fund aims to deliver returns similar to stocks, with a volatility less than two-thirds of global stocks.
Jamie Kramer, global head of JP Morgan Asset Management’s Alternatives Solutions Group, said in a statement, “Sustainable alpha can be generated where the impact of structural changes is underappreciated and incorrectly priced.”
JPMAAM’s long-short fund is confident that it can deliver equity-like returns with less volatility. The fund will capitalise on the company’s 25-year track record in manager selection.
Jamie Kramer will be the new manager for the fund. The fund will largely focus on companies that are screened using JPMAAM’s ESG ratings framework, media reports said.
It will also use the JPMAAM’s ESG framework to search for sustainable alpha opportunities in energy transition, resource efficiency, empowerment, health and wellness and technology for sustainability, media reports said.
JPMAAM is the alternative investment arm of JP Morgan. Last month, it incorporated sustainability and ESG factors across all its processes. It is reported that JPMAM is developing its research and other processes as part of its sustainability initiatives.
JP Morgan is actively investing in ESG capabilities to easily pace with global regulatory initiatives. The company had decided to develop a proprietary scoring system using its in-house data scientists and artificial intelligence to enhance its business of forecasting.
The company is set to launch the 2020 Guide to Alternatives offering analysis into alternative investments.