“There is a lot of money invested in deposits”

From the outset, Massimo Greco emphasized the transformation made by JP Morgan AM in terms of sustainable financing. “In a sector like ours it doesn’t change much, it’s a change that only happens once in a generation at the most,” he explains. The pace has accelerated to the point that achieving a leading position in sustainable investments has become a “priority” for the asset manager. “That’s what guides everything we do.”

Even if the transformation is taking place at a sustained pace, the head of EMEA funds would like to point out that this is a strategy focused on the long term. Especially since this is an issue, according to him, that should not be affected by the current rise in energy prices. “If we are to significantly decarbonize our economy, this is a long-term approach.”

Decarbonizing the economy is one thing, generating returns for customers is another. On this point, Massimo Greco points out that “the trends we identify in sustainable investing are so powerful that they affect asset prices and returns.”

The EU’s energy conversion project is huge. We are talking about several trillions that will be spent to promote the transition.

Massimo Greco, Head of EMEA Funds, and nbsp JP Morgan AM

According to Massimo Greco, Europe will not lack investment opportunities: “The project for the energy transition in the European Union is huge. We are talking about several trillions that will be spent to promote the transition. ” Investments that could accelerate further, due to the rise in energy prices and the search for independence in the face of certain countries, notes the head of Europe, Middle East and Africa funds at JP Morgan AM.

Recruitment of expert profiles

In order to support this transition to sustainable financial product offerings, JP Morgan AM has hired more new employees in this field than in other areas, as determined by Massimo Greco. When asked how to identify suitable candidates in a rapidly emerging field of expertise, he was somewhat optimistic, explaining that specialized diplomas are emerging. He is also keen to refute the notion that the current academic horizon is still poor in this field.

Even if mapping niche profiles per se is not a particular challenge, an asset manager often recruits their experts in sustainable finance outside of the world of finance, among engineering or technology profiles.

The particular profiles do not need to undergo specialized training, as they already have experience thanks to their professional background. These experts are often former government employees, international institutions, or multilateral development banks such as the World Bank or the European Development Bank (EIB). This makes up for the lack of specific academic training.

Product diversification

Along with sustainable investments, the head of EMEA funds wants European consumers to have more choices in financial services. “Obviously, in the long run, there is still a lot of money invested in deposits in Europe and that is not good for the economy,” he said. This is not in the interest of savers either.

There is still a lot of captive distribution in Europe.

Massimo Greco

Massimo Greco, Head of EMEA Funds, and nbsp JP Morgan AM

Still with the aim of diversifying the offer, Massimo Greco notes that “there is still a lot of captive distribution in Europe”, lamenting that credit institutions often only offer their individual customers the bank product per se. “We hope things will change and we are actively present to offer more options.”

All of these ambitions are part of a “long-term” vision, recalls Massimo Greco. Ambitions that can be characterized by macroeconomic challenges. Everyone is clearly paying attention to the fact that anti-inflation efforts will plunge our economies into recession. And it really is a risk we have to be aware of,” asserts JP Morgan AM’s head of EMEA funds in Europe, Middle East and Africa, who notes that “governments have pumped a lot of money into responding to the Covid-19 crisis” and that “stimulus spending has been too high,” Although no one can predict the duration of the epidemic and its full impact.

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