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Amundi, Deka and NN IP unveil ESG funds

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Amundi ESG ETF range sees eight additions

Amundi Asset Management has added to its exchange traded funds (ETFs) a variety of responsible investment strategies, which it says are offered at a competitive price, starting at 0.15% ongoing annual charge.

The additions, which replicate different MSCI ESG index families, are:

  • Four equity ETFs (world, Eurozone, Europe and US) tracking the MSCI ESG Universal Index family, which maintain a broad and diversified universe by using environmental, social and governance (ESG) metrics and a tilt.
  • Three equity ETFs (world, Europe, US) tracking the MSCI ESG Leaders Select 5% Issuer Capped Index family, which have a best-in-class approach, constrain the maximum weight of a company to 5% and pick ESG front-runners from each sector.
  • One ETF (Eurozone) tracking the MSCI EMU SRI 5% Issuer Capped Index; it applies an SRI best-in-class approach and selects companies with strong sustainability profiles while also using value screens. 

Fannie Wurtz, head of Amundi ETF, indexing and smart beta, commented: We strongly believe that ETF & index management has a critical role to play in the accelerating adoption of responsible investing among all types of investors.

“We will continue expanding our responsible range with further ETF launches in the near future.”

Source: Amundi Asset Management

Deka offers two SDG impact funds

German asset manager Deka Investments has revealed an equity impact and a bond impact fund which follow the UN Sustainable Development Goals (SDGs) as a guideline.

The Deka-Nachhaltigkeit Impact Aktien and the Deka-Nachhaltigkeit Impact Renten do not follow a benchmark and seek investments that are economically sustainable, provide concrete solutions and are economically successful, Deka said.

The selection process first excludes companies that, for example, violate the principles of the UN Global Compact or have low ESG scores. This is followed by an impact analysis according to the SDGs, which seeks to select investments that lead to a recognisable positive ecological and social change, and concludes with a final review of the universe.

The equity fund covers 80-100 holdings and the bond fund consists of 100-150 bonds, Deka said.

The latter invests in fixed and variable-rate bonds from governments, supranationals, local authorities and government-related issuers and companies.

Both funds are euro-denominated.

NN IP signs China partner for ESG A-Shares launch

NN Investment Partners (NN IP) has launched an ESG-integrated China A-Shares fund, in conjunction with strategic partner China Asset Management Co (ChinaAMC).

Registered for sale in Luxembourg and the Netherlands, the NN (L) International China A-Share Equity Fund will invest in companies based in or with significant exposure to mainland China, listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

It will be constructed using NN IP’s experience in responsible investing and ChinaAMC’s research and security selection.

Twan Philipsen, head of partnership relations at NN IP, said: “We are proud to work together with ChinaAMC and to have launched a product that enables our clients to access the Chinese equity markets whilst at the same time retaining a high standard of ESG integration. At NN IP, responsible investing is at the core of our investment processes. We will continue to look for opportunities to expand our offering of responsible solutions in close collaboration with our partners.”

Richard Pan, head of global capital investment at ChinaAMC, added: “Local expertise and disciplined investment process can help global investors to navigate investment opportunities in the second largest equity market in the world. Our close collaboration with NN Investment Partners upgrades our joint ESG analysis in evaluating Chinese companies’ long-term sustainability and potential risks.”

Elena Johansson

Senior Reporter

Part of the Bonhill Group.