Environmental, social and governance (ESG) lie front and centre in the index world says Rick Redding, the CEO of the not-for-profit Index Industry Association (IIA). “It’s what a lot of people are working on and where a lot of interesting work is being done trying to look at ESG in a much more sophisticated way.”
ESG & Responsible Investing
Lyxor has listed three new ETFs built to provide a more sustainable exposure to High Yield bonds.
ETF provider iShares is expanding its environmental, social and governance (ESG) ETF line-up and enhancing its existing ESG funds.
iShares says client demand for sustainable investment solutions is growing exponentially, as investors increasingly recognise the impact of climate change and other sustainability risks on their portfolios. The USD5 billion in US iShares ESG ETF flows in 2019 and more than double year-over-year asset growth highlight the growing demand.
iShares ESG MSCI EM Leaders ETF (LDEM) has received more than USD600 million in investment from Ilmarinen, Finland’s largest pension insurance company.
Lyxir has launched a new ETF focused on green bonds on Xetra and Börse Frankfurt.
Fixed income investment manager Sage Advisory Services (Sage) is to change its ESG Intermediate Credit exchanged‐traded fund (GUDB) to active management on or about 14 February, 2020.
Refinitiv has launched the Future of Sustainable Data Alliance (The Alliance) in conjunction with the World Economic Forum, United Nations, IIF, OMFIF, Tsinghua University, ASIFMA, GFMA, Climate Bonds Initiative, FinTech4good, Everledger, Institute of Public and Environmental Affairs, Bank of Africa-BCME, GoImpact and other founding member firms.
Earlier this month saw index and research provider MSCI launch 15 investment grade USD-denominated corporate bond indexes based on ESG and Factors.
December 2019 saw LGIM launch a US equity version of its Responsible Exclusions ETF, designed for investors who are seeking a dynamic approach to ESG exclusions, but also want to maintain a broad market exposure.
Lyxor has been awarded the SRI label for two of its ESG ETFs: Lyxor MSCI Europe ESG Leaders (DR) UCITS ETF and Lyxor MSCI EMU ESG Trend Leaders (DR) UCITS ETF.