Friday Funds: Scottish Widows invests £500 million in Blackrock ESG fund

The latest developments in ESG-related funds: Goldman Sachs AM launches PAB ETF; Vanguard adds two ESG ETFs.

UK pension giant Scottish Widows has invested £500 million ($563 million, €576 million) in BlackRock’s newly launched Global Corporate ESG Insights Bond Fund. The allocation includes assets from the Edinburgh-based pension pot’s flagship workplace defined contribution default solution. It is the second fund that the US investment behemoth has built in consultation with Scottish Widows, following a climate transition fund in 2020. The new bond fund aims to achieve a carbon emissions intensity score that is 50 percent lower than its index.

Goldman Sachs Asset Management has launched a Paris-Aligned Benchmark climate world equity UCITS ETF. The fund has been listed on the London Stock Exchange and is expected to list on Xetra next week. It will look to provide investment results which correspond to the performance of the Solactive ISS ESG developed markets PAB USD index. The fund will aim to manage investors’ climate transaction risks by shifting exposure away from companies which have business models that are inconsistent with a low carbon future.

Vanguard has launched two ESG ETFs to expand its fund range. The ESG Emerging Markets All Cap UCITS ETF and the ESG Developed APAC All Cap UCITS ETF have been listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Six Swiss Exchange and Euronext Amsterdam. The emerging markets ETF will track the FTSE Emerging All Cap Choice index and the APAC ETF will follow the FTSE Developed APAC All Cap Choice index.

GIB Asset Management has launched a sustainable world corporate bond fund, as part of the Amundi UCITS fund partners ICAV. The Article 9 fund will invest in corporate bonds of companies that have the greatest potential to solve environmental and social challenges. The fund will be available to institutional investors across the UK, Ireland, Luxembourg, the Nordics, Belgium, the Netherlands and Sweden. Samantha Lamb, head of fixed income at GIB, will manage the fund, along with a team of three.

The first carbon credit ETF has been listed on the Australian Stock Exchange. VanEck launched the ETF, which will track the ICE Global Carbon Future index. The index sources carbon credit futures prices from the EU Emissions Trading Scheme, the Western Climate Initiative, the Regional Greenhouse Gas Initiative and the UK Emissions Trading Scheme.