Press Release: New UCITS Fund from Impact Cubed and J.P. Morgan Mansart Offers PAB-Beating Sustainability with a Fraction of Tracking Error

hollymorran
Jul 30
2 min read

LONDON, 30 July 2025 – Impact Cubed, a leader in sustainable portfolio construction and analytics, is pleased to announce the launch of the J.P. Morgan Mansart iCubed Global Equity Select Fund. The new Irish-domiciled UCITS Common Contractual Fund (CCF) is structured to meet the demands of institutional investors seeking ambitious and measurable sustainability outcomes with minimal expected tracking error.

The fund tracks the Solactive iCubed Global Sustainability Index (Ticker SICGSUEN), a benchmark designed by Impact Cubed in partnership with leading index provider Solactive AG. The index offers broad exposure to developed market equities while aiming to deliver significantly enhanced sustainability characteristics - surpassing Paris-Aligned Benchmark (PAB) indices - at a materially lower level of expected active risk.

Aston Chan

CIO, Head of Investment Solutions

“We have consistently observed that many existing sustainability indices underdeliver for institutional investors, offering a poor trade-off between sustainability and tracking error,” said Aston Chan, CIO, Head of Investment Solutions at Impact Cubed.

“This fund launch reflects our conviction that meaningful sustainability improvements can and should be delivered within an advanced risk management framework. The Solactive iCubed index has closely tracked its parent benchmark even through the elevated market volatility seen in the first half of 2025, while climate and PAB indices from major index providers have underperformed. This validates our factor investing-based methodology and robust risk controls.”

Optimal Trade Offs Between Sustainability and Risk.

The Solactive iCubed Global Sustainability Index was engineered from the ground up with the aim of exceeding PAB standards in carbon footprint reduction, resource efficiency, and revenue alignment - without the concentration risk or high tracking error typically associated with climate-focused benchmarks. Leveraging Impact Cubed’s proprietary sustainability factor framework, the index delivers these outcomes with meaningfully lower levels of expected tracking error, positioning it as a leading-edge solution for institutional investors seeking to integrate sustainability without compromising portfolio risk and return outcomes.

Key sustainability enhancements versus the parent benchmark include:

80% and 50% reduction in Scope 1 & 2, and Scope 3 carbon emissions intensity respectively
90% lower water consumption and waste generation intensity
Broad-based uplift in SDG alignment across both environmental and social dimensions
Governance enhancements in board independence, gender diversity, and executive pay gap
Stringent exclusion criteria with lower revenue thresholds than PAB requirements and broader considerations which include, for example, gambling involvements.

Best-in-Class Collaboration

The fund is passively managed by J.P. Morgan Mansart Management Ltd, with Solactive AG acting as the index administrator. Impact Cubed’s partnership with these established institutions ensures end-to-end execution quality, from index construction and governance to fund operations and compliance.