Smart Pension has announced the addition of the J.P. Morgan Asset Management Carbon Transition Global Equity ETF to its sustainable default growth fund.

The ETF is part of a wider initiative to make Smart Pension’s default growth fund net zero by 2040, following on the from the news that Smart Pension had launched three new sustainable lifestyle strategies in January 2023.

The fund is a sustainable ETF classified as Article 9 by the Sustainable Finance Disclosure Regulation, and is expected to offer Smart Pension exposure to global equities with a low tracking error, compared to the MSCI World Index.

The ETF is also aligned with the European Union’s Climate Transition Benchmark framework, meaning it will be at least 30 per cent less carbon intensive than the market average and reduce its own carbon footprint by at least 7 per cent per year.

Commenting on the news, Smart Pension chief investment officer, Paul Bucksey, stated: “We are focused on achieving great outcomes for our members. We want to help them secure long-term financial growth and a safer, healthier world in which they can retire.

“We’re delighted to be partnering with J.P. Morgan Asset Management, a leader in the transition to a low carbon world.

"We chose J.P. Morgan’s Carbon Transition Global Equity UCITS ETF because it is committed to companies carrying out simple changes to make a big difference: lowering their carbon emissions, reducing harmful waste and improving their sustainability processes. Now more than ever before, investing in a lower carbon economy is crucial for our future.”

J.P. Morgan Asset Management UK DC client adviser, Annabel Tonry, added: “We are thrilled to have had the opportunity to partner with Smart Pension, whose unwavering focus on sustainability has made them a leader in this space.

“Our Carbon Transition Global Equity ETF focuses on investing in companies that are innovating for the future whilst also achieving a lower carbon footprint. We are delighted to be part of a fully sustainable default that aligns with DC members’ sustainable goals.”

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