Smart Pension, one of the UK’s leading workplace pension providers, announces its investment in J.P. Morgan’s Carbon Transition Global Equity (CTB) UCITS ETF (ticker: JPCT). The ETF focuses on driving the shift to a lower-carbon economy and is part of a wider initiative to make Smart Pension’s default growth fund net zero by 2040. This continues to put Smart Pension at the forefront of the industry from a sustainability perspective.
The J.P. Morgan fund is a sustainable ETF classified as Article 9 by the Sustainable Finance Disclosure Regulation, a technical standard introduced last year by the European Commission to show where funds have sustainable objectives. The fund offers Smart Pension core exposure to global equities with a low tracking error, compared to the MSCI World Index. The ETF is aligned with the European Union’s Climate Transition Benchmark framework, meaning it will be at least 30% less carbon intensive than the market average and reduce its own carbon footprint by at least 7% per year. This means the fund will make a real difference to the people and the planet around us.
The news comes after Smart Pension announced it had become the first UK pension provider to offer customers a range of growth funds that are all fully sustainable, including the Smart Pension default fund, in January 2023.
Smart Pension has made considerable progress in incorporating investments with a strong sustainability focus into its portfolio, and intends to continue doing so. The company is a member of leading global sustainability initiatives and has announced that its default growth fund will be net zero by 2040.
Paul Bucksey, Chief Investment Officer at Smart Pension, commented:
“We are focused on achieving great outcomes for our members. We want to help them secure long-term financial growth and a safer, healthier world in which they can retire. We’re delighted to be partnering with J.P. Morgan Asset Management, a leader in the transition to a low carbon world. We chose J.P. Morgan’s Carbon Transition Global Equity (CTB) UCITS ETF because it is committed to companies carrying out simple changes to make a big difference: lowering their carbon emissions, reducing harmful waste and improving their sustainability processes. Now more than ever before, investing in a lower carbon economy is crucial for our future.”
Annabel Tonry, UK Defined Contribution Client Adviser at J.P. Morgan Asset Management, commented:
“We are thrilled to have had the opportunity to partner with Smart Pension, whose unwavering focus on sustainability has made them a leader in this space. Our Carbon Transition Global Equity ETF focuses on investing in companies that are innovating for the future whilst also achieving a lower carbon footprint. We are delighted to be part of a fully sustainable default that aligns with DC members’ sustainable goals.”
Launched in 2015, Smart Pension exceeds £4bn in assets under management (AUM) and now serves over one million members and more than 70,000 employers. It is powered by Keystone, Smart’s global savings and investments technology platform.
Aquiline Capital Partners, Barclays, Chrysalis Investments, DWS Group, Fidelity International Strategic Ventures, J.P. Morgan, Legal & General Investment Management, Link Group and Natixis Investment Managers are all investors in Smart Pension.