Assets of sustainable mutual funds and ETFs close 2019 at $1.6 trillion, up from $113.5 billion ten years ago The total net assets of mutual funds and exchange traded funds (ETF)(1) sourced to sustainable investing approaches expanded dramatically in the last decade, adding almost $1.5 trillion in the last ten years.
Since the announcement on August 11 and successful placement of Tesla’s $1.80 billion Senior Notes, some disappointment has been expressed by the fact that Tesla didn’t formally qualify as green the company’s newly issued notes.
Three new fund launches bring to six the number of green bond fundsasofNovember2018 Just in the last month, green bond funds doubled in number, with the launch of green bond mutual funds or exchange traded funds (ETFs) by Allianz Global Investors, BlackRock and Teachers Advisors.
The Bottom Line: Touchstone Investments acquires the mutual funds business managed by AIG’s SunAmerica Asset Management and will integrate 12 funds with about $7.5 billion.
Introduction Additional money market funds have jumped onto the sustainable investing[1] parade by launching or converting existing money market funds to reflect the adoption of various sustainable investing approaches, ranging from negative screening (exclusions) to ESG integration, engagement, and even some variations of impact investing.
S&P 500 ESG Index: Another portfolio tool for asset owners and investors The announced launch of the S&P 500 ESG Index on April 8, 2019 gives investors yet another benchmark or tool with which to evaluate the performance of the large cap equity market in the US, qualified on the basis of minimum ESG scores and company exclusions.
Vanguard Social Index Fund Summary Assessment:High Conviction Advised by the Vanguard Group, Inc., this index tracking fund offers an effective US equity-focused sustainable strategy that combines an exclusionary approach along with the integration of environmental, social and governance (ESG) factors.
Fund Assessment High Conviction TIAA-CREF Fund Review This $1.17 billion actively managed fixed income fund, which is advised by Teachers Advisors, Inc., a wholly owned indirect subsidiary of TIAA, is an intermediate-term investment grade fixed income mutual fund that pursues a unique sustainable investing mandate, through a combination of strategies that relies on external ESG research as well as a proprietary approach, including (1) exclusions from certain companies significantly involved in certain business activities, such as tobacco, military weapons, firearms, nuclear power and gambling, (2) impact investing, including investments in green bonds, and (3) the integration of environmental, social and governance (ESG) criteria.
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Research and analysis to keep sustainable investors up to-date on a broad range of topics that include trends and developments in sustainable investing and sustainable finance, regulatory updates, performance results and considerations, investing through index funds and actively managed portfolios, asset allocation updates, expenses, ESG ratings and data, company and product news, green, social and sustainable bonds, green bond funds as well as reporting and disclosure practices, to name just a few.
A continuously updated Funds Directory is also available to investors. This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.
Many questions have surfaced in recent years regarding sustainable and ESG investing. Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation. While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories: Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration. In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices. That said, sustainable investing approaches will continue to evolve.
In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.
Thoughts and ideas targeting sustainable investing strategies executed through various registered and non-registered sustainable investment funds and products such as mutual funds, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), closed-end funds, Real Estate Investment Trusts (REITs) and Unit Investment Trusts (UITs). Coverage extends to investment management firms as well as fund groups.
