As socially responsible investing strategies grow in popularity, asset managers are scrambling to meet investor demand and integrate environmental, social and governance (ESG) factors into new products.
So far this month, new funds include a multi-strategy ESG bond fund from BlackRock. The investment giant said the fund would seeks to generate a capital return and income through strategies such as directional asset allocation, macro investing, and long/short equity.
“The ongoing macro environment of low yields and rising inflation has forced investors to re-think the role of fixed income across portfolios as the return and diversification benefits have become more challenged,” said Jeff Rosenberg, senior portfolio manager for the fund.
Elsewhere, Morgan Stanley Investment Management has launched its Global Balanced Sustainable Fund.
The multi-asset ESG fund combines volatility-targeting asset allocation with investment in companies that aid the transition to a low-carbon economy, with the goal of decarbonizing the portfolio’s core equity exposures and improving their ESG credentials.
CIBC Asset Management has listed a six-strong range of sustainable exchange-traded funds (ETFs) on Canada’s NEO Exchange. The ETFs include products focused on Canadian equities, Canadian bonds, and global equities, as well as a trio of multi-asset funds.
CIBC said the products used its proprietary ESG analysis alongside data from Sustainalytics to design portfolios with lower carbon footprints and energy sector exposures than broad market indexes. The funds use a positive screening process to identify companies involved in the renewable energy space, and to allocate to green bonds.
Finally, Goldman Sachs Asset Management this month listed Goldman Sachs Future Planet Equity ETF on the NYSE Arca exchange. Run by the group’s Fundamental Equity and Quantitative Investment Strategies teams, the fund has already raised $27 million according to the company’s website.