JPMorgan terminates sustainable fund for want of traction

The challenges facing ESG style products has been brought to the fore by JP Morgan’s decision to terminate the JPMorgan Sustainable Infrastructure Fund.

JPMorgan has written to investors stating that it has decided to terminate the Fund with effect from 29 August.

The company signalled to the Australian Securities Exchange that the fund had simply not gained sufficient momentum.

“We regulatory review our products to ensure they are meeting the demands of the marketplace and have the necessary scale to operate in the best interest of unitholders,” the ASX announcement said.

“Following a recent review of the Fund, we have decided that the Fund has not gathered sufficient assets and has limited prospects for future growth. As a result we believe it is in the best interest of unitholders to terminate the fund,” it said.

“While the investment case for sustainable investing remains strong and we remain committed to sustainable strategies, this sustainable strategy has regrettably not gained traction with Australian investors,” JP Morgan’s announcement said.