ESG Investor’s weekly round-up of news about funds designed to meet sustainable investing criteria.
UBS Asset Management has expanded its ETF range with two ESG ETFs. The UBS ETF MSCI Europe Socially Responsible UCITS ETF (UIW1) will track the MSCI Europe Low Carbon Select Issuer Capped Index and the UBS SPI ESG ETF (SPISI) will track the recently created SPI ESG Weighted index. The funds are listed on the Deutsche Boerse and SIX Swiss Exchange. These launches follow the UBS ETF Solactive China Technology UCTIS ETF (CQQQ) and the UBS Climate Aware Global Developed Equity UCITS ETF (CLIMA) last week.
Vanguard Asset Management has launched its first European ESG ETF. The Vanguard ESG Global All Cap UCITS ETF (V3AA) will track the FTSE Developed All Cap Choice index, which excludes any company involved in non-sustainable activities, such as labour and human rights controversies. The fund will offer exposure to companies that log strong ESG scores when a screening filter is applied. “Our clients have a range of environmental and social concerns. Many want to put their money to work in a way that enables them to mitigate certain ESG-related risks, aligns with their values and meets their investment goal,” said Fong Yee Chan, Head of ESG Strategy, UK and Europe, at Vanguard.
BNP Paribas Asset Management (BNPP AM) has expanded its indexed fund range with three sustainable ETFs: BNP Paribas Easy EUR High Yield SRI Fossil Free UCITS ETF, BNP Paribas Easy JPM ESG EMBI Global Diversified Composite UCITS ETF and BNP Paribas Easy JPM ESG EMU Government Bond IG 3-5 Year UCITS ETF. The funds will exclude issuers who fail to comply with the principles of the United Nations Global Compact and companies involved in controversial areas such as tobacco, firearms and fossil fuels. “These fund launches are part of a dual approach of developing our ESG offering and our fixed income index range. We are maintaining the momentum within our responsible offering, in line with the expectations of our institutional and retail clients,” said Isabelle Bourcier, Head of Quantitative and Index Management at BNPP AM.
Eden Asset Management has launched the Eden Global Natural Resources UCITS fund. The fund will invest long-term in equities and equity-related services across metals and mining, energy and agriculture. The firm noted that the process of decarbonising the global economy will generate increased demand for key minerals produced by the resources sector. The portfolio will have between 70 and 100 holdings with an investment horizon of two to five years.
Newly launched UK-based investment firm Keystone Impact Investments aims to provide investors with opportunities in renewable energy and other sustainable projects. The business was founded by Leigh Hyldon, formerly working for JPMorgan Emerging Markets and Cantor Fitzgerald. “Private investors have a lack of opportunities or transparency, so what we’re focused on is to disrupt the traditional models, provide a simple way to raise growth capital and streamline a sustainable way to invest,” Hyldon told Citywire.