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Friday Funds: CCLA, Fidelity, Stewart Investors, Amundi and more

The latest fund developments in ESG and sustainable finance

Client-owned fund manager CCLA has announced that its Public Sector Deposit Fund, a sterling denominated money market fund for the public sector, has reached £1bn. Launched in 2011, the fund has an investor base of 550 UK parishes, towns, districts, boroughs, counties, pension funds, police and fire authorities, and housing associations.

Fidelity International has launched three more ESG ETFs. All three are actively managed equity strategies that cover global, US and European markets. Stocks are selected based on “companies that Fidelity favours from a sustainable and fundamental perspective,” based partly on its in-house ESG ratings. The portfolios comprise around 250-500 stocks. Fees stand at between 0.3% and 0.35% and the funds will trade on the London Stock Exchange and Deutsche Börse Xetra. German asset manager Deka Investments has announced the launch of a new equity impact fund, and a bond impact fund, both guided by the UN SDGs. 

Stewart Investors has developed an open-source microsite for its Worldwide Sustainability Strategy, including an interactive map showing the companies held in the portfolio with details on how they contribute to sustainable development. Companies are searchable by sector and by SDG. 

NN Investment Partners has launched an ESG-integrated China A-Shares fund with China Asset Management Co. It will invest in companies based in or with significant exposure to mainland China, listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange. 

Amundi has expanded its ESG ETF range by launching eight new funds, based on MSCI indices. The funds cover a range of regions and strategies. Some are SRI-based, while others track ESG indices, and all are listed on the Deutsche Börse Xetra.  

71% of portfolio managers are unable to view the performance attribution of ESG investment factors in their portfolios, according to a new survey by Riskfirst, a Moody’s Analytics company. The global survey explored portfolio managers’ ability to see the impact on investment performance of ESG factors alongside traditional factors, and found that only 15% have complete visibility of ESG factors for performance analysis. A further 15% said they can view ESG factors, but only on a limited basis.

Blended-finance impact fund Agri-Business Capital (ABC) has provided an €800,000 loan to Dragon Farming Ltd, which produces environmentally sustainable and nutritional feed for farm animals across Africa. 

The Kames Target Healthcare Property Fund has teamed up with the UK National Health Service and the military to establish a new COVID-19 recovery centre. The project will support patients recovering from the effects of the virus, and comes at a time when the UK is facing a shortage of after-hospital care facilities. The healthcare property fund, established 10 years ago, invests in real estate for end-of-life or elderly care properties.

Quilter Cheviot’s Climate Assets Fund has celebrated its 10-year anniversary by announcing it has reached £100m. The fund invests in the growth markets of sustainability and environmental technologies, including resource scarcity. 

HSBC Global Asset Management is launching a range of Sustainable ETFs developed by FTSE Russell to track indices that integrate ESG, carbon emissions and fossil fuel reserves considerations. Three of the new ETFs, focusing on Europe, Japan and USA, were listed on the London Stock Exchange on 5 June. A number of others are expected to launch in the coming weeks.

LGBTQ Loyalty Holdings, a specialist in corporate equality and diversity performance in relation to the LGBTQ community, is working with ProcureAM to create ESG indices. The team will be led by Nicole Douillet, a prominent finance executive who created the Credit Suisse LGBT Equality Index.

The Esmée Fairbairn Foundation and Triodos Bank UK are working with the UK Environment Agency to provide grants to four green projects as a pilot ahead of the launch of a £10m Natural Environment Fund in 2021, which hopes to encourage private sector investment into areas such as habitat restoration, natural flood management and pollution reduction.