Friday Funds: KLP pours €200m into Quinbrook net-zero infra fund

The latest developments in ESG-related funds: Monaco sovereign wealth fund invests in blue economy impact, Ossiam launches 8 PAB ETFs.

Norway’s KLP has backed a net-zero power fund managed by Quinbrook Infrastructure Partners with NKr2 billion (€200 million; $203 million). The investment will mainly go to solar power and battery systems in the US, with minor investments in the UK and Australia.

Monaco’s Constitutional Reserve Fund has invested €10 million in Ocean 14 Capital’s blue economy impact fund, bringing its total raise to €100 million. The fund, which launched in December last year, invests in firms in the areas of aquaculture and alternative proteins, reducing plastic waste pollution, protecting ecosystems and marine flora and ending overfishing. It will have invested in eight companies this year, and the firm plans to grow its portfolio to between 20 and 25 businesses.

Ossiam has launched a series of eight equity ETFs tracking Bloomberg Paris-aligned benchmarks. The ETFs, all of which have been designated as Article 9 funds under SFDR by Ossiam, cover global, European, Eurozone, Europe ex Eurozone, US, Canada, Japan and APAC ex Japan.

In other PAB news, DWS has launched three Xtrackers ETFs tracking Solactive Paris-aligned benchmarks and investing in US, European and Japanese equity markets. The funds are all classified as Article 9 under SFDR.

Schroders impact subsidiary BlueOrchard has launched its second “InsuResilience” private equity fund with backing from KfW. The fund invests in climate insurance companies in Asia, Africa and Latin America, and is targeting a raise of $100 million, with initial commitments already secured from private investors.

Euronext has booted carmaker Stellantis and three other firms out of its ESG version of the CAC 40 following a review. Mall operator Klepierre, software firm Atos and industrial group Bouygues are also losing out, while corporate services firm Edenred, automotive parts manufacturer Faurecia, industrial services firm Rexel and tech firm Teleperformance have been added to the index, which uses ESG ratings from Moody’s subsidiary VE as its main metric for inclusion.

Oaktree Capital Management has launched a responsible high yield bond fund. The fund will invest across North American and European high yield bonds, and aims to “promote and encourage” lower carbon emissions through investment.

Emerge has launched a series of five ETFs ranged across a series of themes including dividend stocks, emerging markets and growth equities. The ETFs, managed by an all-women team, exclude a range of sectors including gambling, adult entertainment and chemical weapons.

AXA Investment Managers has launched an ESG ETF platform, focused on active strategies. The first two ETFs under the platform concentrate on climate and biodiversity, but AXA did not provide further details when asked.

Manulife Investment Management has launched a global climate action fund. The equity fund, designated Article 9 under SFDR, will invest in firms that make “positive contributions” to climate change.

Aegon Asset Management has switched its £490 million ($567.9 million; €565.2 million) short term bond fund to focus on the climate transition and designated it an Article 8 fund under SFDR. Aegon said the change was appropriate to better reflect the fund’s investment approach, and that it had now fully embedded climate transition and ESG analysis into said approach.