Friday Funds: BNY Mellon launches Article 9 EM impact debt fund

The latest developments in ESG-related funds: Amundi launches climate ETF, UK pension funds back sustainable infra.

BNY Mellon Investment Management has launched the Responsible Horizons EM Debt Impact Fund. The Article 9 fund, which will be managed by Insight Investment, will invest in emerging market debt instruments targeting a positive and measurable social or environmental impact. The fund will be managed by Simon Cook. It follows the Responsible Horizons Euro Corporate Bond Fund, which has reached more than €1 billion in assets under management, and the Responsible Horizons Euro Impact Bond Fund.  

Amundi has launched a Euro Corporate Bond PAB UCITS ETF to expand its climate ETF range. The fund will track the Bloomberg MSCI Euro Corporate Paris Aligned Green Tilted Index, which provides exposure to euro-dominated investment grade corporate bonds, implements strict ESG exclusions for companies involved in controversial activities, and complies with the Paris goals. It also follows a trajectory of a 7 percent absolute carbon emissions reduction on an annual basis and an immediate reduction of 50 percent of carbon intensity compared to the investable universe. 

Railpen has acquired a Cambridgeshire solar project, expanding its UK renewable energy portfolio. The Bracks solar farm, previously owned by global renewable energy company BayWa r.e. is a 30 MWp project which will generate enough clean energy to power around 8,700 homes. The acquisition is the second deal between Railpen and BayWa r.e., the first of which was the purchase of Tralorg Wind Farm in 2019. 

UK LGPS fund Greater Manchester Pension Fund has committed £100 million ($123 million; €113 million) to Gresham House’s sustainable infrastructure strategy, according to reports in Professional Pensions. It is the latest local authority fund to back the strategy alongside East Riding, Teeside, Worcestershire and others, and has boosted the strategy’s AUM to about £500m. The strategy will prioritise underfunded sectors and has previously created new biodiversity habitats, grown produce and provided broadband access.