Friday Funds: EQT seeking €5bn for core infrastructure fund with SBTi targets

The latest developments in ESG-related funds: DWS launches Paris-aligned ETFs, JP Morgan to remove Russia from ESG indexes

EQT is looking to raise €5bn for its new core infrastructure fund. The fund will invest in core infrastructure companies primarily focused in Europe and North America and at the lower end of the risk-return spectrum. It will develop decarbonisation plans for each investment and set science-based GHG reduction targets for portfolio company operations. The fund will be classified under article 8 of the EU’s sustainable finance disclosure regulation (SFDR). 

The Bank for International Settlements has launched its third green bond fund to raise money for green projects in the APAC region. The three green funds, managed by the bank on behalf of central banks and other official institutions, will invest $3.5bn between them. 

Brown Advisory has launched a new “sustainable international leaders” strategy. The fund will seek to invest in a concentrated portfolio of companies outside the US which are leaders in their sector or geography and have sound ESG risk management practices. It will aim to outperform the FTSE All-World ex-US index. 

New Forests has raised $120m for its second tropical Asia fund. The fund will invest in sustainable forest plantation assets across South East Asia for end markets including timber, rubber and carbon. New Forests says that the fund includes a blended finance structure which will enable it to integrate investment in impact activities “focused on climate action, community engagement and livelihoods and biodiversity conservation”. 

JP Morgan is set to remove Russia from its ESG emerging market bond indexes while it is reviewing the country’s inclusion in other debt benchmarks, according to reports in Reuters. The bank is consulting with clients on when and how to remove Russia from the index, according to Reuters’ source. 

DWS has launched two new Paris-aligned ETFs focusing on eurozone and global developed market equities. The funds, both classified as Article 9 under the EU SFDR, track Solactive indices which provide a 50% reduction in carbon intensity versus a benchmark and 7% year on year decarbonisation, with the funds also re-weighting components according to carbon intensity, commitment to a science-based target and TCFD reporting, in line with recommendations by the IIGCC. 

Unigestion has launched a Climate Transition equity fund investing in companies addressing climate change. The fund, classified as Article 9 under the EU SFDR, will invest in 50-70 companies addressing climate change, in line with adaptation and mitigation criteria under the Taxonomy.