Responsible Funds, January 29: Marguerite fund, Pax World, Troy AM, Impax, Solactive

The latest responsible funds news

The European Union’s ‘Marguerite Fund’ is among a consortium in talks with renewables firm Mainstream Renewable Power for its £2bn (€2.6bn), 450MW Neart na Gaoithe offshore wind project in Scotland to “financial close and into construction”. The consortium, led by Edinburgh-based InterGen, also includes Siemens Project Ventures and Infrared Capital. Link

Bangladesh’s Central Bank has set up a $200m (€183m) fund to help reduce emissions of carbon dioxide (CO2) in the nation’s clothing industry, Climate Change News (CGN) reports citing the Bank’s Governor Atiur Rahmann. Further details of the move were not disclosed. CGN also quoted Rahmann as saying that beyond clothing, the fund would also help reduce CO2 emissions in other sectors. It may issue a green bond to raise money for such projects, the Governor added.

Index firm Solactive has teamed up with South Pole Group to launch a low-carbon equity index family. The Solactive SPG Low Carbon Index Family consists of six equity indices, all based on the respective Solactive Benchmark (US Broad Market or European Broad Market).

UK green investor Impax Asset Management has launched
a new equity fund called the Impax Environmental Leaders Ireland Fund, targeting energy efficient listed companies and those in the renewable and water infrastructure sectors. Around half the fund’s 40-60 stock portfolio will be North American. Located in London, Impax has £3.1bn in assets under management.

China’s Shanghai Pudong Development Bank Co. has reportedly raised CNY20bn (€2.8bn) in the country’s first domestic green bond offering targeting clean energy and environmental protection. The bank will pay 2.95% interest annually on the three-year bonds, vice president Pan Weidong was quoted
as saying by Bloomberg.London-based Troy Asset Management has launched a new equity fund that excludes an array of sectors for ethical reasons. The 35-50 stock Trojan Ethical Income Fund will exclude fossil fuels, pornography, tobacco and certain types of armaments. The fund’s manager, Hugo Ure, said: “The Trojan Ethical Income fund is, first and foremost, a UK equity income fund. However, the fund also adheres to a set of ethical criteria that we hope will resonate with a growing pool of investors.”

New York State Governor Andrew Cuomo has announced the creation of a 10-year, $5bn (€4.6bn) ‘Clean Energy Fund (CEF)’ for the purpose of investing in renewables and energy efficiency projects within the State. The investments are key to Cuomo’s strategy of having renewables account for half of the State’s energy supply by 2030. Cuomo’s office said the CEF would be administered by the New York State Energy Research and Development Authority (NYSERDA). Among NYSERDA’s investments will be the full capitalization ($782m) of the NY Green Bank, whose purpose is to lend to renewable project developers.

US-based sustainable investing firm Pax World has made a filing
with the SEC saying that on March 31 this year its ESG Managers Growth Portfolio will be consolidated into the ESG Managers Growth and Income Portfolio, and the ESG Managers Growth and Income Portfolio will be renamed the Pax Sustainable Managers Capital Appreciation Fund. The ESG Managers Balanced Portfolio will be consolidated into the ESG Managers Income Fund, and the ESG Managers Income Portfolio will be renamed the Pax Sustainable Managers Total Return Fund. It added that ClearBridge Advisors, an arm of Legg Mason, would “cease serving as subadviser to the funds”.

US-based impact investing fund TriLinc Global Impact Fund has approved a total of $15.2m in term loan and trade finance facilities to companies in Argentina, Chile, Nigeria, and South Africa. The move brings its total financing commitments to $128.6m for business expansion and socioeconomic development through its holdings in Sub-Saharan Africa and Latin America.