Friday Funds: Lyxor unveils ‘implied temperatures’ of 150+ ETFs in project with Trucost

The latest developments in ESG-related funds

Lyxor Asset Management has disclosed the “implied” temperature of more than 150 Exchange Traded Funds (ETFs) in a move it says “marks a significant milestone on our journey towards providing investors with the information they need to better assess the impact of their portfolios on global warming and, if necessary, help align them with the goals of the Paris Agreement”. The firm said it was “working tirelessly” with Trucost, the climate data firm now owned by S&P, to gather both past emissions data and future emissions “projections” for each company with the funds. Data is based on self-disclosure and Trucost estimates. For a full list of “implied temperatures”, see here

Amundi is sponsoring a new ESG Observatory providing tools, data, and analysis on the global market for ESG Exchange-Traded Funds. The product is being created by TrackInsight, an ETF analysis platform, using a methodology from Swiss ESG advisor Conser. Guidance on how to map ETFs against the Sustainable Development Goals is being provided by the UN’s SDG Investors Partnership.

Premier Miton will launch a responsible and sustainable European ex-UK equity fund later in the year, run by Thomas Brown and Carlos Moreno.

T. Rowe Price has developed a ‘responsible’ UK Equity Fund, which excludes companies involved in extreme ESG breaches that are not taking steps to remediate the issue. The fund, which is the asset manager’s first dedicated UK investment strategy, will typically hold 85% of its 40-60 positions in companies with a focus on quality and growth, while the remainder will be in firms on a path to improving cash flow and returns.

Spanish bank BBVA has collaborated with index provider Solactive to create two strategies aligned with the EU’s new Paris-aligned Benchmark and Climate Transition Benchmark rules. The new quant strategies will be part of the pair’s Solactive BBVA ixESG Global Leaders Index. 

Rathbone Unit Trust Management is working with Rathbone Greenbank Investments on four actively-managed sustainable investment funds. The vehicles will invest across government, supra-national and corporate bonds, listed equities, structured products and derivatives. As part of the push, Rathbones will hire an assistant, an investment specialist and additional analysts. 

J O Hambro Capital Management has launched the Regnan Global Equity Impact Solutions Fund to invest in mission-driven companies providing solutions to environmental and societal problems. The fund, open to EU-based investors, will be led by the Regnan Equity Impact Solutions team.