ESG Investor’s weekly round-up of news about funds designed to meet sustainable investing criteria.
JP Morgan Asset Management (JPM AM) has launched a global income generating sustainable multi-asset securities fund, the JPMorgan Investment Funds – Global Income Sustainable Fund. The fund generates regular income through investment in sustainable securities from issuers that show effective governance and superior management of environmental and social issues and through derivatives. The fund is run by portfolio managers Michael Schoenhaut, Eric Bernbaum and Gary Herbert. Massimo Greco, Head of EMEA Funds at JPM AM, said: “In the continued incredibly low yield environment, investors need more sustainable sources of diversified income.”
BNP Paribas Asset Management has renamed the BNP Paribas Human Development fund as BNP Paribas Inclusive Growth fund and changed its investment strategy to inclusive growth. Based on a proprietary ‘inclusion score’, the fund invests in a high-conviction equity portfolio of 40 to 60 companies implementing best practices to contribute to inclusive growth. Maria Luz Diaz Blanco, Portfolio Manager of the Inclusive Growth Fund, commented: “By integrating specific performance indicators, such as employee turnover rate or board diversity, our proprietary model allows us to filter the investment universe to identify the leaders.”
BMO Global Asset Management has launched two ESG ETFs which invest in US corporate high yield bonds. The BMO ESG High Yield US Corporate Bond Index ETF and the BMO ESG High Yield US Corporate Bond Index ETF (Hedged Units) will track the Bloomberg Barclays MSCI US High Yield Liquid Corporate Sustainability SRI Index. The Index excludes securities of companies that earn a significant portion of revenues – for example, tobacco, adult entertainment, alcohol and gambling. The ETFs are listed on the Toronto Stock Exchange.
RM Funds, a UK specialist asset manager focusing on alternative investments, has announced the launch of its new RM Impact Credit Fund, which will provide funding to UK-based quality businesses that make positive contributions to ESG outcomes and are linked to specific Sustainable Development Goals. The provision of non-benchmark sized loans will be worth up to £15m, focusing specifically on social infrastructure and environmental infrastructure themes. The fund will have an impact scoring system aligned with recognised global standards and initiatives, including the Principles for Responsible Investment (PRI) and the Impact Management Project. RM Funds has partnered with UK impact advisory and management firm The Good Economy to provide third-party assurance of the impact management and measurement framework.
Coronation has launched the Coronation Sustainable Global Emerging Markets Fund. It is an actively managed long-term fund that invests in global emerging markets, using proprietary research to identify companies that are mispriced by the market relative to their long-term intrinsic value. It aims to invest sustainably by excluding companies that do not meet specific ESG criteria. The fund is managed by Suhail Suleman and Lisa Haakman. “We are excited to offer our clients access to this new portfolio that incorporates sustainability considerations and uses tighter risk parameters in portfolio construction,” said Suleman.
Investment boutique Amati Global Investors has launched its TB Amati Strategic Metals Fund, giving investors the chance to invest in metals which will be required to facilitate the transition away from fossil fuels to a net-zero carbon economy. Metals include, but are not limited to, gold, silver, copper, manganese and cobalt. The fund will be managed with a ‘Clean Trade’ approach, meaning that if the sourcing of metal in an area isn’t positively impacting the wider community, it will not invest.
Luxembourg-based asset manager AV Group has launched the Nordic ESG and Impact Fund. The fund will be investing in climate technology, climate infrastructure and Nordic based growth equity companies focused on smart city/society, ocean space tech and clean tech. “Norway and the Nordics are leading the way in the global energy transformation. Our fund is helping to build the business models of the future and support the opportunities that will provide job security and energy independence for generations to come,” said Karl Andersen, CEO and Founder.
UBS Asset Management has launched the UBS SPI ESG ETF, listed on the SIX Swiss Exchange. The ETF has been adjusted for ESG factors, excluding companies deriving more than 5% of their revenue from sectors such as nuclear energy, coal, oil and tobacco.