Friday Funds: BNY Mellon launches three active sustainable ETFs

The latest developments in ESG-related funds

BNY Mellon has launched three new active ETFs, focused on US, international, and emerging markets equities. The ETFs will invest at least 80% of assets in companies which “demonstrate attractive investment attributes and sustainable business practices”.  

DWS subsidiary Xtrackers has launched a new ESG government bond ETF, tracking a FTSE Russell ESG sovereign index. The index scores countries across their environmental, social and governance performance, adjusting their weight accordingly. The lowest performers and countries considered “not free” will be excluded. 

The Medical Credit Fund has raised €32.5m for its second fund, which focuses on providing loans to healthcare SMEs in sub-Saharan Africa. It has secured an anchor investment of €7.5m from the Dutch Ministry of Foreign Affairs, while other investors include CDC Group, FMO, Swedfund and Philips.  

Aviva Investors has launched a social transition and a natural capital transition fund, both focusing on global equities. The social transition fund will invest in companies “that are changing their business models to respect human rights, promote decent working conditions and engage in responsible corporate behaviour”, or are improving access to education, healthcare and financial inclusion. The natural capital fund will invest in companies that “provide solutions and are transitioning their business models across the themes of sustainable land, sustainable oceans, the circular economy and climate change”.  

Regnan and J O Hambro Capital Management have launched a sustainable water and waste fund. The fund will invest across the water and waste value chain, in companies which “provide solutions to global water or waste related challenges”. 

Gresham House has raised £200m for the second close of its Forest Growth and Sustainability fund. Worcestershire County Council Pension Scheme and a number of private investors made new commitments to the fund, which aims to generate returns through the sale of timber, and the capital growth of land and trees, as well as producing carbon credits which are distributed to investors to either offset their own emissions or sell on. 

BNP Paribas has obtained the French responsible investment label for 15 new funds, bringing its total funds with the label to 66, managing €70.2bn.