eInvest launches Australia’s first actively managed ESG ETF
eInvest, a distributor of exchange traded managed fund solutions, has launched Australia’s first actively managed ESG exchange traded fund (ETF).
The new fund, eInvest Future Impact Small Caps Fund (IMPQ) is also Australia’s first Small Cap Active ESG ETF and is managed by affiliate, Perennial Value Management. The fund aims to provide long-term capital growth by investing in Australian and New Zealand small and mid cap stocks that contribute positively and sustainably to society and the environment.
The founding belief of this new strategy is that investors in environmental, social and governance (ESG) portfolios should not have to sacrifice their financial objectives in order to achieve an ESG impact. The fund aims not to compromise on investment returns to achieve social objectives by benchmarking itself against the S&P/ASX Small Ordinaries Accumulation index, and is a well-diversified, actively managed portfolio that may hold up to 70 Australian or New Zealand stocks.
The strategy pursues listed investment opportunities and focuses on companies that take into consideration ESG criteria and/or conduct business in industries which are favourable having regard to ESG criteria. Companies that are misaligned with sustainability practices are excluded, such as those with more than 10% revenue in fossil fuels, alcohol, tobacco, weapons, forestry activities, gambling and unhealthy fast foods. Perennial Value proactively monitors ESG-related metrics for companies in the investment universe and engages with them to determine their approach to ESG.
Camilla Love, Managing Director of eInvest, says: “Sustainable investing is increasingly an important focus for many investors, and for the first time, Australian investors can access an actively managed ESG ETF. Our fund not only gives investors access to specialist active management skills through a convenient and lower-cost ASX tradable structure, it also provides the tools to make a social impact without compromising on returns.”
Damian Cottier, Portfolio Manager at Perennial Value, says: “We are seeking to invest in small and mid-cap companies that are making a positive contribution to a sustainable future. We have a strong heritage in investing in the under-researched small cap universe which makes us well placed to uncover interesting investment opportunities for the fund.”