Fund Solutions

This Week’s Fund News: Invesco, T Rowe Price, BMO GAM, Federated Hermes And More

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

Invesco has launched two ESG ETFs, one of which will be the first ETF to track the recently created FTSE All Share ESG Climate Index. The Invesco FTSE All Share ESG Climate UCITS ETF (FASE) and Invesco MSCI Europe Ex UK ESG Universal Screened UCITS ETF (ESEU) are listed on the London Stock Exchange. The FASE ETF is targeting a 50% reduction in index-level carbon emissions and fossil fuel reserves, while aiming for a 10% improvement in index-level ESG ratings and 50% increase in green revenues. The ESEU ETF will track the MSCI Europe Ex UK ESG Universal Select Business Screens index, which offers exposure to 324 stocks with strong ESG scores.

T Rowe Price has launched the T Rowe Price Global Impact Equity Fund which will actively invest in companies that have a positive global impact across three pillars: climate and resource impact; social equity and quality of life; and sustainable innovation and productivity. The fund will exclude certain industries and companies the manager believes don’t conform to its impact mandate, like tobacco, for-profit prison companies and fossil fuels. “The opportunity to own businesses that foster positive environmental and social change is broader than it has ever been. Being on the right side of these changes creates real opportunity to select stocks that can provide attractive financial returns along with positive impact on the planet and our society,” said Hari Balkrishna, Portfolio Manager of the T Rowe Price Global Impact Equity Fund.

Federated Hermes has launched a Sustainable Global Equity fund, the first of a new suite of Active ESG and Impact funds. The fund will have a concentrated portfolio of 30 to 50 companies and focus on four key themes: environmental preservation, social inclusion, health and wellbeing and efficient production and resource usage. “The fund, which will be a thematic portfolio, has dual objectives – it is about sustained capital growth as well as having very specific sustainability values represented in its objectives,” said Harriet Steel, Head of Business Development and Executive Board Director at Federated Hermes.

BMO Global Asset Management (GAM) has added two sustainable funds to its BMO Universal Multi-Asset Portfolio (MAP) range. The BMO Sustainable Universal MAP Adventurous fund and BMO Sustainable Universal MAP Defensive fund seek to provide sustainable growth over the long-term using BMO GAM’s responsible and sustainable opportunities strategies. “We’ve responded to demand and launched [these] two additional sustainable funds, adventurous and defensive, to complete a comprehensive range of sustainable options, suiting most clients’ risk appetites, that are very well priced and fully actively managed,” said Rob Thorpe, BMO GAM’s Head of Intermediary Distribution for UK and Europe.

UBS Asset Management has expanded its suite of socially responsible strategies and launched the UBS S&P 500 ESG Elite ETF. The fund excludes companies from a wide range of controversial industries, in order to ensure it aligns with Article 8 of the EU’s Sustainable Finance Disclosure Regulation. “The UBS S&P 500 ESG Elite ETF enables investors to take the next step in their sustainable journey and achieve more impact through their investments,” said Clemen Reuter, Global Head of ETF and Index Fund Client Coverage at UBS AM.

Desjardins Global Asset Management (DGAM) has launched the Desjardins RI Emerging Markets – Low CO2 Index ETF. The fund will replicate the performance of the Scientific Beta Desjardins Emerging Markets RI Low Carbon index and will focus of large and mid-cap companies within that universe that are reducing their carbon intensity. The overall goal is “a significant reduction in the weighted average carbon intensity of the fund’s portfolio and ensuring that all constituent issuers meet pre-determined ESG standards,” said Nicolas Richard, CEO of DGAM.

UK-based fund distributer First Trust has announced the launch of the First Trust Global Capital Strength ESG Leaders UCITS ETF (FCSG). The fund will invest in a diversified portfolio of global equities with strong ESG scores, according to the MSCI ACWI ESG Leaders Index it tracks. “We are seeing an increasing appetite from investment managers and their clients for investment solutions that marry robust financial performance through a socially responsible lens. This ETF also offers downside protection through a combination of its high-quality focus and by applying low volatility metrics while focusing on a portfolio of the highest scoring ESG companies,” said Robert Haddon, Managing Director and Head of Sales at First Trust.

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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