JP Morgan Asset Management has announced that it is excluding tobacco stocks from its Australian multi-asset strategy.
In a statement, the global asset manager announced that the Australian version of its Global Macro Opportunities Fund was no longer investing in companies from the tobacco industry as a result of “increased client demand”.
The Australian Global Macro Opportunities Fund, which already excludes stocks considered ‘controversial weapons’ producers, has been screening out tobacco stocks since 8 August 2018.
The fund has $246 million assets under management and aims to invest in “major global themes” in certain sectors that will drive asset class returns.
JP Morgan Asset Management has thus far already integrated ESG factors into 25 per cent of its total assets under management (US$425 billion of US$1.7 trillion), according to the statement.
“ESG factors have become powerful tools in helping institutional investors assess the quality and risk profile of companies, to help ensure their investments are focused on sustained growth and profitability,” said JP Morgan Asset Management Australia chief executive Rachel Farrell.
“ESG analysis is an important input to the investment process which, alongside fundamental analysis, can help these investors make better long-term decisions.”
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