Thematic Investing | J.P. Morgan Private Bank (2022)

If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit. You can address water scarcity. Or back green energy efforts. Or apply a “gender lens” to your portfolio so that it embraces efforts specific to women and girls. Today, there are more of these issue-specific investments than ever before. We can help you identify the funds targeting your desired outcomes.

Thematic investing, like other forms of sustainable investing, allows you to support issues you care about while also pursuing investment returns.

Trends in thematic investing

Thematic investing strategies have the potential to profit from a broad range of social, economic and environmental trends. These include:

  • Population growth
  • Urbanization
  • Emerging market growth
  • Aging populations
  • Technology breakthroughs
  • Natural resource depletion
  • Climate change
  • Evolution of the global financial system

There are several sustainable themes that are well-positioned to take advantage of these trends: renewable energy, water, healthcare, clean technology and waste management.

Popular sustainable investing themes in Europe

Thematic Investing | J.P. Morgan Private Bank (1)

Eurosif, 2018 European SRI Study

(Video) How to Build A Private Investment Portfolio | Four P’s Explained | Private Bank | J.P. Morgan

This pie chart illustrates the percentage of sustainable investment assets allocated to individual categories.

A deeper look: investing in environmental markets

The implications of population growth, rising pollution levels, deteriorating infrastructure and the depletion of the Earth’s natural resources can be felt globally. There is a growing demand for investment in clean energy, water infrastructure, sustainable agriculture and waste recovery, making investments in companies and funds that access these environmental markets attractive for financial return and sustainable impact.

*Source: Impax Asset Management

Water as an investment opportunity

Thematic Investing | J.P. Morgan Private Bank (2)

The S&P Global Water Index has outperformed the broader market since its inception in November 2001.

Source: Morningstar, monthly returns from November 2001 to December 2018.

The S&P 500 index is a basket of 500 of the largest U.S. stocks, weighted by market capitalization. The index is widely considered to be the best indicator of how large U.S. stocks are performing on a day-to-day basis.

The S&P Global Water Index provides liquid and tradable exposure to 50 companies from around the world that are involved in water related businesses.

The MSCI ACWI is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International (MSCI), and is comprised of stocks from both developed and emerging markets.

This three-line graph, covering the period November 2001 to April 2018, traces the growth in value of the MSCI ACWI Index, the S&P 500 Index and the S&P Global Water Index.

  • Values Based Investing
    Do you know what's in your portfolio? Are you investing in companies that align with your values and standards and avoiding those who do not? We can answer these questions and more.

    Learn More

    (Video) How Key Private Investment Themes Will Shape Long Term Secular Trends | Private Bank | J.P. Morgan

  • Environmental, social and governance
    In addition to helping you align your portfolio with your sustainable investing goals, ESG is also just good, smart investing. We can help you utilize this popular investment approach.

    Learn More

  • Thematic investing
    If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit.

    Learn More

  • Impact investing
    Impact investing may be the most exciting of all the sustainable investing strategies. It‘s intended to generate measurable positive social or environmental impact alongside financial return. Learn more.

    Learn More

Why investors are looking carefully at “human capital… Insights

Sustainable Investing

Why investors are looking carefully at “human capital… As the pandemic wanes, investors and companies are focusing on this key ESG factor.

May 17, 2022

The climate opportunity: Getting ahead of Latin America’s… Insights

Investment Strategy

The climate opportunity: Getting ahead of Latin America’s… Latin American investors should anticipate shifting demands from high- to low-emission industries

Apr 15, 2022

Overfunding a 529 plan? The results may surprise you Insights

Education

Overfunding a 529 plan? The results may surprise you A 529 is a tax-efficient way to pay for college—to a point. Beware of the tax implications and know there may be other good…
  • Jordan Sprechman

May 17, 2022

more insights

We take a global approach to sustainable investing and the solutions offered through our Sustainable Investing Platform meet our internally defined criteria for a sustainable investment. Though we consider our internal criteria to be very thorough and selective, the evolving nature of sustainable finance regulations and the development of jurisdiction-specific legislation setting out the regulatory criteria for a “sustainable investment” mean that there is likely to be, in future, a degree of divergence as to the regulatory meaning of a “sustainable investment”. In particular, in the European Union, the Sustainable Finance Disclosure Regulation (EU) (2019/2088) (“SFDR”) prescribes certain criteria for a product to be classified as “sustainable” or having a “sustainable investment objective”. For further information on our products which promote environmental and/or social characteristics or have a sustainable investment objective within the meaning of Article 8 and/or 9 of the SFDR, please see our SFDR Art 8 and 9 Product Disclosures, available at:link.

(Video) Add to cyclical exposure in the year ahead: JPMorgan

Thematic Investing | J.P. Morgan Private Bank (6)

*Required Fields

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you.

Important Information

Sustainable investing (“SI”) and investment approaches that incorporate environmental social and governance (“ESG”) objectives may include additional risks. SI strategies, including ESG SMAs, mutual funds and ETFs, may limit the types and number of investment opportunities and, as a result, could underperform other strategies that do not have an ESG or sustainable focus. Certain strategies focused on particular sectors may be more concentrated in particular industries that share common factors and can be subject to similar business risks and regulatory burdens. Investing on the basis of sustainability/ESG criteria can involve qualitative and subjective analysis and there can be no assurance that the methodology utilized, or determinations made, by the investment manager will align with the beliefs or values of the investor. Investment managers can have different approaches to ESG or sustainable investing and can offer strategies that differ from the strategies offered by other investment managers with respect to the same theme or topic. ESG or sustainable investing is not a uniformly defined concept and scores or ratings may vary across data providers that use similar or different screens based on their process for evaluating ESG characteristics. Additionally, when evaluating investments, an investment manager is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could cause the manager to incorrectly assess an investment’s ESG/ SI performance.

J.P. Morgan takes a global approach to sustainable investing and the solutions offered through our sustainable investing platform meet our internally defined criteria for a sustainable investment. The evolving nature of sustainable finance regulations and the development of jurisdiction-specific legislation setting out the regulatory criteria for a “sustainable investment” or “ESG” investment mean that there is likely to be a degree of divergence as to the regulatory meaning of such terms. This is already the case in the European Union where, for example, under the Sustainable Finance Disclosure Regulation (EU) (2019/2088) certain criteria must be satisfied in order for a product to be classified as a “sustainable investment”. Any references to “sustainable investing”, “SI” or “ESG” in this material are intended as references to our internally defined criteria only and not to any jurisdiction-specific regulatory definition.

LEARN MORE About Our Firm and Investment Professionals Through FINRA Brokercheck

To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please reviewour J.P. Morgan Securities LLC Form CRS andGuide to Investment Services and Brokerage Products.

JPMorgan Chase Bank, N.A.and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered throughJ.P. Morgan Securities LLC("JPMS"), a member ofFINRAandSIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read theLegal Disclaimerin conjunction with these pages.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

Thematic Investing | J.P. Morgan Private Bank (7) Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC.Not a commitment to lend. All extensions of credit are subject to credit approval.

(Video) JPMorgan Private Bank says now is 'the right time to buy' tech, financial stocks

You're Now Leaving J.P. Morgan

J.P. Morgan’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan name.

(Video) Top Three Wealth Management Investing Megatrends in 2021 | Year of Recovery | J.P. Morgan
Thematic Investing | J.P. Morgan Private Bank (8)

Videos

1. When J.P. Morgan Saved The World (w/ Richard Sylla) | Expert View | Real Vision™
(Real Vision Finance)
2. Three factors that led to a January rally: Trader
(CNBC Television)
3. JP Morgan opens lounge as Metaverse gears up
(i24NEWS English)
4. J.P. Morgan Private Bank Discusses Potential Sector Disruption in 2018 | J.P. Morgan
(jpmorgan)
5. 5 Major Trends Shaping the Future of Payments | FastForward | J.P. Morgan Payments
(jpmorgan)
6. Grow and Protect Your Wealth | Real Estate and Private Equity | J.P. Morgan
(jpmorgan)

You might also like

Latest Posts

Article information

Author: Saturnina Altenwerth DVM

Last Updated: 08/28/2022

Views: 5793

Rating: 4.3 / 5 (64 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Saturnina Altenwerth DVM

Birthday: 1992-08-21

Address: Apt. 237 662 Haag Mills, East Verenaport, MO 57071-5493

Phone: +331850833384

Job: District Real-Estate Architect

Hobby: Skateboarding, Taxidermy, Air sports, Painting, Knife making, Letterboxing, Inline skating

Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.