Friday Funds: Carney to run impact funds for Brookfield, bushfires prompt doubling of Australian Ethical inflows

The latest developments in ESG-related funds

Brookfield has appointed the former Governor of the Bank of England, Mark Carney, to oversee its ‘impact’ funds and ESG investment strategies. Carney, whose title will be Vice Chair and Head of ESG and Impact Fund Investing, will retain his position as UN Special Envoy for Climate Action and Finance, through which he will help galvanise thinking on climate finance ahead of next year’s climate summit, COP26. 

SEB is redesigning its index funds to exclude the extraction of fossil fuels and fossil energy production. The Swedish financial group says calls from its customers for more sustainable investments has led to the redesign of three of its funds, excluding companies that do not comply with the fund company's sustainability requirements.

Superannuation fund Australian Ethical saw its inflows double in January following Australia’s devastating bushfire season, contributing to a profit rise of nearly 50% for the year. The fires led to a spike in concern over the effects of climate change. Australian Ethical has a strict screen on fossil fuels.

Qontigo has licensed the DAX 50 ESG Index to the Austrian Raiffeisen Centrobank to underpin a certificate. The new index screens out companies involved in “controversial or unsustainable activities” such as nuclear power, thermal coal, weapons and military contracting; and screens in those with high ESG scores.

BMO Global Asset Management has launched a new Responsible China A-Shares Equity Fund. The new fund brings BMO GAM’s responsible and sustainable range to 15 and will provide investors with the opportunity for active, fundamental management in the China A-Shares equity market. 

Tickr has announced the launch of the world’s first ‘Junior Impact ISA’ aimed at parents who are looking to invest in an ethical way. The app, a certified BCorp business, allows people to put their money into specific companies spanning climate change, equality and disruptive tech. 

Foresight Energy Infrastructure Partners has acquired a 94MW wind farm portfolio in Spain from wind energy operator wpd AG. Foresight’s wind assets under management now total 800MW and the company has over 2.5GW of renewable generating capacity from solar, wind and bioenergy portfolios across Europe and Australia. 

Tribe Impact Capital, an impact-focused wealth manager based in the UK, has announced the outperformance of sustainable investing during the first half of this year. Tribe has benefited from significant growth from investments in three sustainable investment sectors: healthcare stocks, sustainable food producers and UK social housing.