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Friday Funds: New Paris-aligned ETFs and impact funds

The latest developments in ESG-related funds

BlackRock has launched two new sustainable ETFs tracking the S&P 500 Paris Aligned Climate Sustainability Screened Index and the MSCI World Paris Aligned Benchmark Select. Both ETFs have been designed to align with a 1.5C scenario, which requires a 7% year-on-year reduction in carbon emissions. Both fall under Article 9 of the SFDR. 

BlackRock has also launched a World ESG Insights Equity Fund. The fund, underpinned by BlackRock’s ESG assessment framework, will overweight companies which it believes “may benefit over time from a focus on capturing ESG risks and opportunities”, as well as aiming for a 50% reduction in carbon intensity versus the FTSE Developed Index. 

Nuveen has completed the initial public offering of its Nuveen Core Plus Impact Fund, raising $575m from the common share offering with a further $86m in additional share purchase options. The fund will invest in a diversified portfolio of fixed-income investments across affordable housing, community and economy development, natural resources and renewables and climate change, as well as issuers with demonstrable leadership in ESG.

Amundi has launched a fixed income climate Paris-aligned ETF. The Amundi iCPR Euro Corp Climate Paris Aligned PAB will invest in investment-grade euro-denominated corporate bonds in alignment with the Paris agreement and make sector-based exclusions.

Nordea has launched a green bond fund. The fund, managed by Anton Nykvist and Sascha Stallberg, will invest at least 70% of its assets in dedicated green bonds, while also investing in social and sustainability-linked bonds, and non-labelled bonds from companies at the forefront of environmental action.

Neuberger Berman has announced the close of its private equity impact fund with commitments of $280m. The fund will make direct investments and invest in funds seeking to achieve SDG-aligned positive social and environmental outcomes. At the end of March, the fund had committed $132m in investments, including in a water filtration company and a broadband technology platform.

London CIV has launched a renewable infrastructure fund, investing in greenfield and brownfield assets including generation, transmission, distribution and enabling assets. A total of £435m has been committed by five seed investors, with a further £300m expected from six other client funds.

S&P Dow Jones has launched sustainable versions of its five Dividend Aristocrats indices. The indices, which track companies with a managed-dividends policy, will contain sector-based exclusions and exclude companies in the bottom 25% of S&P ESG scores.

PIMCO has launched the PIMCO GIS ESG fund, targeting investments with strong ESG credentials and a high and consistent dividend.has announced the close of its private equity impact fund with commitments of $280m. The fund will make direct investments and invest in funds seeking to achieve SDG-aligned positive social and environmental outcomes. At the end of March, the fund had committed $132m in investments, including in a water filtration company and a broadband technology platform.