The new fund targets developed market equities with substantially enhanced sustainability metrics, including steep reductions in emissions, water usage, and waste.
It tracks the Solactive iCubed Global Sustainability Index, which minimizes tracking error while improving SDG alignment and governance factors.
The fund results from a tri-party collaboration between J.P. Morgan Mansart, Solactive, and Impact Cubed to address performance tradeoffs in sustainable investing.
J.P. Morgan Mansart, the specialist asset management arm of J.P. Morgan, has introduced the J.P. Morgan Mansart iCubed Global Equity Select Fund, a global equity fund that delivers improved sustainability outcomes while maintaining low tracking error to its benchmark.
The fund tracks the Solactive iCubed Global Sustainability Index, jointly developed by Solactive and Impact Cubed, which comprises large- and mid-cap stocks from developed markets. The index sets ambitious targets, including an 80% reduction in Scope 1 and 2 emissions, a 50% cut in Scope 3 emissions, and a 90% reduction in water consumption and waste generation intensity compared to its parent index.
Beyond environmental metrics, the index integrates improved alignment with the UN Sustainable Development Goals (SDGs), enhanced governance metrics such as board independence and gender diversity, and stringent exclusion criteria based on sustainability performance. Weighting rules are applied to ensure proper diversification and avoid unintended factor tilts.
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According to Timo Pfeiffer, Chief Markets Officer at Solactive,
“The strength of this tri-party collaboration lies in its balance: institutional-grade fund management from J.P. Morgan Mansart, factor-driven sustainability from Impact Cubed, and independent index expertise from Solactive—together creating a product that keeps active risk in check while advancing sustainable equity investing.”
Aston Chan, Chief Investment Officer and Head of Investment Solutions at Impact Cubed, highlighted the fund’s ability to maintain alignment with its benchmark during recent market fluctuations:
“We have consistently observed that many existing sustainability indices under-deliver for institutional investors, offering a poor trade-off between sustainability and tracking error. The Solactive iCubed index has closely tracked its parent benchmark even through the elevated market volatility of early 2025, while climate and PAB indices from major providers lagged. This validates our factor-investing methodology and robust risk controls.”
The fund is positioned as a scalable solution for institutional investors seeking meaningful sustainability enhancements without compromising on performance tracking.
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