Friday Funds: ERAFP launches €5bn SRI real estate tender

The latest developments in ESG-related funds

French public service pension scheme ERAFP has launched a €5bn tender for four real estate managers for its existing portfolios. The tender is for two managers each for two portfolios – SRI unlisted real estate in France and in Europe.  

The UK’s East Sussex Pension Fund has invested £200m into a new global equity ex-fossil fuels strategy in partnership with Osmosis Investment Management. UBS Asset Management will act as investment manager for the strategy, which excludes tobacco, controversial weapons and businesses in breach of the UN Global Compact, with Osmosis acting as advisor. Utilities which generate more than 50% of their energy from renewable sources are eligible for reintroduction to the fund if they also have a positive “resource efficiency score”. 

HSBC Asset Management has launched a new sustainable ETF investing in bonds with a one- to three-year maturity. The ETF tracks a Bloomberg MSCI index, investing in investment-grade government and corporate bonds across developed and emerging markets. It excludes the worst emitters and firms in controversial areas or with poor ESG practices, and slightly overweights ESG leaders. 

HSBC Asset Management has also provided the $48.2m privately placed refinancing of a 60MW solar and wind portfolio in Chile, owned by InterEnergy. 

T. Rowe Price has launched two new impact strategies focusing on global equity and credit. T. Rowe Price said that the equity fund would “deliver performance through active investment decisions based on impact-oriented corporate engagement, active proxy voting, and building direct influence with management teams”, while the credit fund will invest in bonds from “high impact-aligned issuers”. 

New ETFs in Asia tracking one of Intercontinental Exchange’s (ICE) ESG indices accumulated $1.72bn in 2021, according to the firm. The inflows to the 11 new ETFs established in the region in 2021 account for just over 10% of the AUM in ETFs tracking ICE indices. 

DWS has launched an equity fund focusing on social factors relating to women. DWS said that the fund – which is managed entirely by women – “specifically targets the needs of women when selecting their investments”, evaluating companies on five social factors including gender distribution at management level and value chain working conditions. 

The Connecticut State Pension Fund has said it plans to invest $125m into the Climate Adaptive Infrastructure fund. 

Candriam has launched a new sustainable bond impact fund. The actively managed fund assesses the ESG quality of issuers and the alignment of use of proceeds with the UN Sustainable Development Goals. It will include a minimum 75% ratio of sustainable bonds and Candriam plans to donate 10% of the net management fee to organisations supporting green or social projects. 

WHEB has launched a new environmental impact fund seeded by Rothschild & Co. The fund is based on WHEB’s global equity strategy, investing across five themes: resource efficiency, clean energy, water management, sustainable transport and environmental services. It currently holds 25 stocks. 

The Africa Go Green Fund, which was initiated by German development bank KfW, has made a $5.5m senior secured loan to clean energy and cooking firm Bboxx. Bboxx sells solar home systems and LPG cooking stoves – which replace more common charcoal or wood stoves – across six African countries.