J.P. Morgan’s specialist asset management division, Mansart, has introduced the J.P. Morgan Mansart iCubed Global Equity Select Fund. This new fund seeks to provide exposure to developed market equities while significantly enhancing sustainability characteristics and maintaining a low tracking error relative to its parent universe.
The fund will track the Solactive iCubed Global Sustainability Index, created by Solactive and Impact Cubed, a sustainability-focused investment advisor and data provider. The index includes large and mid-cap stocks from developed markets as part of the Solactive GBS Developed Markets Large & Mid Cap Index. It aims to deliver sustainability benefits such as an 80% reduction in Scope 1 and 2 emissions, a 50% reduction in Scope 3 emissions, and a 90% decrease in water consumption and waste generation intensity. Additionally, it incorporates improved alignment with the Sustainable Development Goals (SDGs) across environmental, social, and governance dimensions, including board independence, gender diversity, and executive pay gap enhancements, alongside strict sustainability-based exclusion criteria.
The index employs weighting rules to ensure diversification and minimise unintended factor tilts. Solactive notes that the index was designed to address the common trade-off in climate benchmarks, which often achieve sustainability targets at the cost of increased concentration risk or high tracking error.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented, “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, added, “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.”
