By J.P. Morgan Asset Management | September 17, 2021
Meet the Manager: Morgan Moriarty. This video features an interview with Morgan Moriarty in which she discusses Canada Life Sustainable Portfolios as well as the philosophy underpinning the investment process at J.P. Morgan.
Professional, positive background music plays throughout the entire video.
Description: Red screen. White text appears: Meet the Manager: Morgan Moriarty. J.P. Morgan Investment Managers. Canada Life Sustainable Portfolios. Cut to white screen. Red text appears: Tell us about your role at J.P. Morgan Asset Management. Cut to a shot of a woman dressed in business attire. She is being interviewed in a large open room. The Empire State Building is visible outside the window behind her. As she begins speaking a text banner appears beside her: Morgan Moriarty, Executive Director, Portfolio Manager in Multi-Asset Solutions.
Morgan: Hi, my name is Morgan Moriarty, and I am a portfolio manager with J.P. Morgan's Multi-Asset Solutions Group. I've been with the team over 10 years. The Multi-Asset Solutions team has over 50 years of experience managing multi-asset strategies. And today we oversee more than $350 billion in client assets. In addition to the over 100 investment professionals dedicated to multi-asset strategies, we have access to our counterparts across equities, fixed income, and alternatives who help bring a bottom-up perspective to our own top-down insights.
Description: Cut to a white screen. Red text appears: What’s unique about how the multi-asset team constructs and monitors portfolios? Cut back to Morgan’s interview.Morgan: Our portfolio construction process begins with J.P. Morgan's long-term capital market assumptions, a 10- to 15-year outlook on returns, risk, and correlations across asset classes. Next, we identify the managers best suited to help deliver alpha for our clients by selecting their best ideas within their asset class. Finally, we tactically adjust portfolio allocations across markets to generate incremental returns for investors. A unique component of the J.P. Morgan approach, particularly as it relates to ESG investing, is our connectivity with the research analysts and asset class specialists across the J.P. Morgan platform. We are able to integrate the bottom-up insights they gleaned from company meetings and big data research with our proprietary top-down quantitative models and macro economic views to deliver a comprehensive solution for investors that align with their objectives without sacrificing returns.
Description: Cut to a white screen. Red text appears: What differentiates J.P. Morgan when it comes to ESG investing? Cut back to Morgan’s interview.
Morgan: J.P. Morgan recently set the goal to become the number one sustainable asset manager. And I believe that there are three key things that set us apart when it comes to ESG investing and meeting that goal.
Description: A Text banner appears beside Morgan that reads: 1. Company engagement
Morgan: First, company engagement. Our equity and credit research analysts meet with over 2,500 companies annually. In these meetings, they have the ability to engage with senior management on key priorities and shape their thinking.
Description: A Text banner appears beside Morgan that reads: 2. Long track record of investing with ESG considerations
Morgan: Second, we have a long track record of investing with environmental, social, and governance considerations. Our fundamental research teams have always focused on these factors and they are now able to bring this to the forefront of their process.
Description: A Text banner appears beside Morgan that reads: 3. Resourcing
Morgan: And finally, resourcing. J.P. Morgan is committed to ESG and investing heavily to be at the forefront of big data in the ESG space. The ability to back up qualitative research with this hard data will be a powerful tool in generating alpha. We've always looked at E, S, and G factors as a part of our investment process. A key advantage of the J.P. Morgan approach to ESG was not to force anyone to adopt a new process, but rather to allow investors to adapt this increased focus in a way that suits their investment philosophy. In doing so, I believe clients are able to invest with J.P. Morgan in a way that aligns with their values without sacrificing returns.
Description: Cut to a white screen. Red text appears: How is ESG integrated into your process? Cut back to Morgan’s interview.
Morgan: ESG has always been integrated into how we think about risk-taking. For example, in the case of allocating to emerging market equities, we want to evaluate if we were being adequately compensated for the additional risk premium required for investing in companies with relatively immature corporate governance. So, in that sense, ESG factors are something we've always considered. And today, we're simply formalizing how we incorporate them.
Description: Cut to a white screen. Red text appears: Can you specify some examples of your engagement with companies on ESG issues over the past year? Cut back to Morgan’s interview.
Morgan: As a part of our fundamental research process, we are able to establish a view on best practices within an industry, set targets for companies with which we invest, and work with their senior leadership to meet those targets. One of my favorite examples of our engagement with companies on ESG matters is Walmex. Walmex is the Walmart of Mexico. And during the COVID-19 lockdowns, Walmex sent the employees responsible for bagging groceries home for their safety. However, the company continued to pay these employees for the duration of the lockdown. And this is an example of an industry best practice we identified through our engagement efforts that would never have been disclosed in a regulatory financial report.
Description: Cut to a white screen. Red text appears: What are you most excited about within the sustainable investing industry right now? Cut back to Morgan’s interview.
Morgan: One thing I've always found fascinating as a multi-asset investor is the continuous ask from our clients to innovate in order to help them achieve their goals. In many ways, I feel sustainable investing is the most innovative space in the asset management industry today. For example, integral to J.P. Morgan's approach has been our application of big data efforts. Today, we have access to the greatest data transparency and most advanced analytical capabilities in history. And we are developing the tools to harness this analytical power for our investors. Take the carbon transfer strategy. Our team has developed a proprietary framework that considers over 70 metrics and employs natural language processing on hundreds of millions of data sources. And by doing so, the team targets at least a 30% reduction in weighted average carbon intensity relative to market cap and a further 7% year on year de-carbonization, all while generating returns in line with that of the US equity market. And big data is just one way we're innovating. In fact, J.P. Morgan's commitment to ESG is spurring innovation across the organization. We've built and resourced a dedicated sustainable investing team, systematically integrated ESG information into our investment process, and are now developing new products to meet the needs of investors. At its core, J.P. Morgan's approach to sustainable investing is aimed at achieving compelling risk adjusted return and is about using research, insights, and data to inform these investment decisions.
Description: Cut to a white screen. Red text appears: With so much talk about greenwashing, how do you address this concern? Cut back to Morgan’s interview.
Morgan: One thing to know about J.P. Morgan's culture – it is an extremely thoughtful organization. So, from the outset of our efforts to offer sustainable strategies, being true to our word and avoiding greenwashing was a key focus. As a firm, we have put immense structure around ESG integration and product development efforts, including firm-wide governance, incorporating representation from senior investors and business stakeholders. And this has taken time, but we're okay with that because it enables us to say hand over heart that we are offering investors a solution that is truly aligned with their goals and objectives.
Description: Cut to a white screen. Red text appears: What’s unique about Canada Life Sustainable Portfolios? Cut back to Morgan’s interview.
Morgan: We have a best-in-class multi-asset capability, which has over 50 years of experience in managing multi-asset portfolios for clients. We also have a world-class stable of research analysts and portfolio managers who have ESG embedded into their process as they cover companies across the globe. As multi-asset investors, our ability to leverage these high conviction ideas from across the J.P. Morgan platform, combined with our expertise in managing multi-asset portfolios, enables us to truly deliver clients the best of both worlds. And today, we're able to apply that approach that emphasizes sustainability. The Canada Life Sustainable Portfolios allow investors to access J.P. Morgan's asset allocation expertise while emphasizing sustainability within a single portfolio solution. Our firm has the explicit goal to become the industry's leading sustainable asset manager. And I'm very excited to bring the Canada Life sustainable portfolios along for the ride.
Description: Cut to a white screen. Grey text appears: The views expressed in this video are those of the speaker and do not necessarily reflect the view of Canada Life or any other party. Nothing in this video is intended to be legal, tax or financial advice. Cut to white screen. The Canada Life logo appears. Canada Life and design are trademarks of The Canada Life Assurance Company. canadalife.com 1-888-252-1847.
Canada Life Sustainable Portfolios
J.P. Morgan Asset Management (Canada) Inc. (JPMAM) is the sub-advisor for Canada Life Sustainable Portfolios. Sustainable investing touches every part of their business. With their forward-looking investment approach, they aim to deliver long-term sustainable financial returns in a fast-changing world.
JPMAM’s investment teams fully integrate environmental, social and governance (ESG) factors into their decisions. Their portfolio managers assess a firm’s risk and return profile, beyond what’s revealed in traditional financial analysis.
Want to learn more? Meet the manager of Canada Life Sustainable Portfolios – Morgan Moriarty, Executive Director, Portfolio Manager in Multi-Asset Solutions. Hear Morgan speak about their multi-asset solutions team, their investment process and what differentiates JPMAM when it comes to ESG investing. You’ll also learn what she’s excited about in sustainable investing – innovation, big data and carbon transfer strategy.
The views expressed in this commentary are those of this fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it. Canada Life Sustainable Portfolios are available through a segregated funds policy issued by Canada Life or as a mutual fund managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd. Make your investment decisions wisely. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.
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