J.P. Morgan is cutting tobacco stocks from its ethical investment strategy in Australia

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  • Tobacco stocks will be excluded from the Australian strategy of the JPMorgan Global Macro Opportunities Fund.
  • This is in addition to the current exclusion of weapons producers.
  • Environmental, social, and governance investing, known as ESG, has exploded in popularity.

J.P. Morgan Asset Management has decided to exclude tobacco stocks from its flagship multi-asset strategy in the Australia market, JPMorgan Global Macro Opportunities Fund.

The fund, in response to client demand, will no longer invest in entities classified as being in the tobacco industry according to the Global Industry Classification Standard.

This is in addition to the current exclusion of weapons producers.

Environmental, social, and governance investing, known as ESG, has exploded in popularity

Money managers already have almost $US23 trillion earmarked with an ESG mandate, which is roughly 25% of the entire global investment universe.

“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,” says Rachel Farrell, Australia CEO, J.P. Morgan Asset Management.

JPMorgan Global Macro Opportunities Fund is part of a global macro thematic strategy with $US9.7 billion assets under management internationally.

A version of the strategy for Australian investors started in May 2016 and that strategy currently has $A246 million.

In May, the Australian version of the fund was upgraded to Recommended by Lonsec Research.

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