Fund Solutions

This Week’s Fund Launches: Columbia Threadneedle, BNPP AM, HSBC and More

ESG Investor’s weekly round-up of new funds designed to meet sustainable investing criteria. 

Columbia Threadneedle Investments has expanded its responsible investment range with the launch of the Threadneedle (Lux) Emerging Market ESG Equities and the Threadneedle (Lux) Pan European ESG Equities funds. Managed by Senior Portfolio Manager Young Kim, the EM fund will combine Columbia Threadneedle’s proprietary responsible investment ratings and research with fundamental company analysis to identify growth opportunities and material risks in high quality innovative businesses. The European fund is a conversion of the Threadneedle (Lux) Pan European Equities Fund. It will continue to be managed by Ann Steele and Dan Ison, who have been increasing the intensity of ESG analysis in the fund over the past 18 months. The managers aim to deliver capital growth by investing in companies with sustainable competitive advantages and strong operating practices.

BNP Paribas Asset Management has introduced a blue economy ETF to invest in companies that make sustainable use of ocean resources. The BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF tracks the ECPI Global ESG Blue Economy index, an equally-weighted index providing exposure to 50 large caps selected for their sustainable participation in the blue economy. The index conforms to UN Sustainable Development Goal 14: ‘Life below water’. According to the World Bank, blue economy is defined as sustainable use of ocean resources for economic growth, improved incomes and jobs, and healthy ocean ecosystems.

Earlier this week, HSBC Global Asset Management unveiled the UK Sustainable Equity UCITS ETF. According to HSBC, it is the first UK sustainable equity ETF with a reduced carbon target. It is benchmarked against the customised FTSE UK ESG Low Carbon Select Net Tax Index, which targets a 20% ESG improvement and a 50% carbon emissions and fossil fuels reserves reduction. The latest addition to HSBC’s sustainable equity range aims to enable investors to “tap into UK companies transitioning to a more sustainable future”.

In Canada, Invesco launched the Invesco S&P/TSX Composite ESG Index ETF, the first Canadian-listed ETF to track the S&P/TSX Composite ESG Index, which uses S&P DJI’s ESG criteria to select companies from the benchmark Canadian S&P/TSX Composite Index. The new product offers investors access to Canadian companies with ESG considerations while maintaining a risk/return profile similar to the benchmark Index

Last week, Blackrock issued its first climate risk adjusted government bond ETF. The Blackrock iShares € Govt Bond Climate ETF invests in the investment-grade government bonds of Euro-zone countries less exposed to climate change risks. The fund tracks the FTSE Advanced Climate Risk-Adjusted European Monetary Union Government Bond Index, which weights according to each country’s relative exposure to physical risk, transition risk and resiliency. This methodology includes an assessment of the expected economic impact of transitioning to emissions levels aligned the objectives of the Paris Climate Agreement.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

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