JPMorgan Asset Administration plans ESG ETFs for Asian purchasers


JPMorgan Asset Administration is seeking to provide Asian institutional buyers a variety of environmental, social and governance trade traded funds, in addition to thematic and sector-based ETFs.

The US-headquartered fund supervisor has but to checklist any pure ESG or thematic ETFs in any market. However rising investor demand within the Asia-Pacific area, in addition to an growing variety of fund launches throughout the trade in these funding areas, is driving improvement.

Asian buyers have expressed sturdy expectations of future progress for ESG ETFs and thematic ETFs, in keeping with a survey of 320 skilled buyers carried out by JPMAM earlier this 12 months.

Of the 40 buyers from the Asia-Pacific area, 70 per cent anticipated ESG ETFs to develop strongly over the subsequent two to a few years, in contrast with a world common of 59 per cent.

This text was beforehand revealed by Ignites Asia, a title owned by the FT Group.

“We’ve been actually pleasantly stunned across the progressive nature of Asian buyers relating to speaking about extra area of interest methods,” stated Sean Cunningham, JPMAM’s Hong Kong-based head of Asia ETFs.

Many international buyers imagine ETFs are actually solely relevant to passive funding methods, Mr Cunningham stated, however Asian buyers are notably open to having a dialog on extra progressive methods utilizing an ETF wrapper.

There’s a very sturdy development in Asia in direction of thematic and extra strategic beta methods, after which there’s at all times an overlying ESG dialog that has been happening with purchasers within the area, he stated.

“You’re most unlikely to have a shopper dialog these days round something that doesn’t have an ESG factor to it, or a minimum of for that to be raised as one thing for the longer term,” he added.

Mr Cunningham stated purchasers in Asia have been ESG developments in Europe, the place conversations on ESG have been very superior and the place there have been going to be much more ESG and sustainability-focused launches.

“Given that there’s this very excessive demand, we’ll launch merchandise across the globe which might be applicable for Asian establishments,” he stated.

JPMAM remains to be early within the product improvement stage for future ETFs, however ESG is forming a big a part of what it is considering from a method perspective.

The corporate is seeking to have conversations with purchasers on their ESG or sustainability wants, Mr Cunningham stated, although he declined to offer a timeline on when a JPMAM ESG ETF may change into out there to buyers.

The brand new thematic or ESG ETFs can be listed alongside JPMAM’s present vary of ETFs listed within the US and Europe that it first established in June 2014. The corporate has no plans but to launch a domestically domiciled ETF in Asia exterior China.

In Might this 12 months, Ignites Asia revealed that JPMAM had began constructing its regional ETF enterprise in China via China Worldwide Fund Administration, its onshore three way partnership that it’s near securing full management of.


Proportion of worldwide passive ESG belongings in Europe

Exterior Europe and North America, there are 75 passive sustainable funds, together with 20 in China, 17 in Australia, eight in South Korea, six every in Japan and New Zealand, and three in Taiwan.

Europe accounts for 76 per cent of all international passive ESG belongings, which totalled $249.3bn worldwide as of end-June, in keeping with a Morningstar report.

Europe’s ESG funds trade has benefited from a really sturdy regulatory push, which has resulted in sturdy flows into ESG ETFs, in keeping with Jackie Choy, Morningstar’s Hong Kong-based director of ETF analysis for Asia.

Whereas there’s not that very same sturdy regulatory assist in Asia but, Mr Choy stated there was anecdotal proof of extra inquiries about ESG ETFs from regional institutional buyers.

Brown Brothers Harriman carried out a world survey of 300 institutional buyers, monetary advisers and fund managers, together with 100 within the higher China area encompassing mainland China, Hong Kong and Taiwan, earlier this 12 months. A few quarter of higher China respondents stated they anticipated to allocate between 21 per cent and 50 per cent of their portfolio to ESG ETFs.

“It’s positively been an space that has been gathering momentum throughout Asia, positively this 12 months,” stated Chris Pigott, Brown Brothers Harriman’s head of Hong Kong ETF companies.

Inside ETFs

The FT has teamed up with ETF specialist TrackInsight to carry you unbiased and dependable knowledge alongside our important information and evaluation of all the things from market traits and new points, to threat administration and recommendation on developing your portfolio. Discover out extra right here

The survey additionally requested institutional buyers in higher China the place they want to see extra native publicity by way of new ETF merchandise: ESG got here second after managed threat/low volatility, he added, which indicated that buyers have been in search of extra choices in having the ability to entry these kinds of ESG merchandise.

A variety of the curiosity in ESG merchandise is coming from regional pension funds, endowment funds and insurance coverage corporations, stated Mr Pigott, including that banking channels reminiscent of non-public banks had additionally began to look extra intently at these merchandise over the previous 12 months or so.

The vast majority of the conversations JPMAM has had with regional purchasers on thematic ETFs have concerned subjects reminiscent of expertise, cloud computing, working from dwelling and inhabitants demographics.

“I feel that’s to be anticipated as a result of the passive area is already fairly commoditised and effectively coated, so it’s anticipated that you simply’ll have extra of those area of interest exposures,” stated Mr Cunningham. “But it surely has been one thing fairly visible for the market this 12 months simply what number of of those [thematic] funds are getting launched and gaining traction.”

*Ignites Asia is a information service revealed by FT Specialist for professionals working within the asset administration trade. It covers all the things from new product launches to laws and trade traits. Trials and subscriptions can be found at


  1. Hi, I do believe this is an excellent website.

    I stumbledupon it 😉 I’m going to come back once
    again since i have book marked it. Money and
    freedom is the best way to change, may you be rich and continue to guide other people.
    asmr 0mniartist

  2. Hello, i think that i saw you visited my website so i came to “return the
    favor”.I am attempting to find things to enhance my website!I suppose its ok to use a few of your ideas!!

  3. Aw, this was a really nice post. Taking a few minutes and actual effort to make a great article… but what can I say… I hesitate a whole lot
    and don’t seem to get nearly anything done.

  4. Thanks for your personal marvelous posting! I truly
    enjoyed reading it, you are a great author.I will make sure to bookmark your blog and will eventually come back down the road.

    I want to encourage that you continue your great posts, have a nice morning!

  5. scoliosis
    Wonderful beat ! I would like to apprentice whilst
    you amend your site, how can i subscribe for a weblog website?
    The account helped me a applicable deal. I have been a little bit acquainted of this your broadcast offered
    vivid transparent concept scoliosis

  6. I’m really inspired with your writing talents as smartly as with the format on your weblog.
    Is this a paid theme or did you customize it your self?
    Anyway stay up the excellent high quality writing,
    it is rare to peer a nice blog like this one nowadays..

  7. I do not know if it’s just me or if perhaps everybody else encountering problems
    with your blog. It seems like some of the text on your content are running off the screen. Can somebody else
    please comment and let me know if this is happening
    to them as well? This could be a issue with my browser because I’ve
    had this happen previously. Cheers

  8. Nice post. I was checking constantly this blog and I’m impressed!

    Extremely helpful info specifically the last part 🙂 I care for such info much.
    I was looking for this certain info for a long time. Thank you
    and good luck.

  9. With havin so much content do you ever run into any problems
    of plagorism or copyright infringement? My site has a
    lot of completely unique content I’ve either written myself or outsourced but it appears a lot
    of it is popping it up all over the web without my permission. Do you know any ways to
    help stop content from being stolen? I’d definitely appreciate it.

  10. I think this is among the most vital information for me.
    And i’m glad reading your article. But want to remark on some general things, The site style is ideal,
    the articles is really great : D. Good job, cheers

  11. Hey There. I discovered your blog the use of msn. That
    is a very well written article. I’ll make sure to
    bookmark it and return to learn extra of your useful information. Thank you for the post.
    I’ll definitely comeback.

  12. Howdy! Someone in my Facebook group shared this website with us so I came to check it out.
    I’m definitely enjoying the information. I’m bookmarking and will be tweeting this
    to my followers! Wonderful blog and brilliant design and

  13. Hey there would you mind sharing which blog platform you’re using?
    I’m going to start my own blog in the near future but I’m having a hard time
    deciding between BlogEngine/Wordpress/B2evolution and Drupal.

    The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique.
    P.S Sorry for getting off-topic but I had to ask!

  14. Undeniably believe that which you stated. Your favorite reason appeared to be
    on the internet the easiest thing to be aware of.
    I say to you, I certainly get irked while people consider worries that they plainly
    don’t know about. You managed to hit the nail upon the top and also defined
    out the whole thing without having side effect , people
    could take a signal. Will probably be back to get more.

  15. My partner and I stumbled over here different page and thought I may as
    well check things out. I like what I see so i am just following you.
    Look forward to exploring your web page for a second time.

  16. Wonderful blog you have here but I was wanting to know if you knew of any forums that cover the same topics talked about here?
    I’d really like to be a part of online community where I can get
    comments from other knowledgeable people that share the same interest.
    If you have any recommendations, please let me know.
    Kudos! quest bars quest bars

  17. У нас восемнадцать рейтинговых сериалов для поклонников дедективов.
    Чики смотреть онлайн смотреть онлайн,
    сезон, сериала. Выбирайте по году выхода, Сериалы жанра “Боевик”.

    Кроме того все мы готов предоставить палитру каналов 2х2,
    HD Звезда, 4K Звезда, прямой эфир
    Eurosport 1, трансляция Bollywood HD.


Please enter your comment!
Please enter your name here