Fund supervisor Constancy Worldwide has launched a Paris agreement-aligned sustainable ETF, increasing its vary of climate-focused funding options.
The Constancy Sustainable International Excessive Yield Bond Paris-Aligned Multifactor UCITS ETF will goal a median decarbonisation charge of seven% per 12 months.
It would additionally goal a degree of emission depth 50% decrease than an equal international market Change Traded Fund.
The ETF is benchmarked towards the Solactive Paris Aligned International Company Excessive Yield USD Index, and goals to offer long-term progress and revenue by investing in a diversified portfolio of excessive yield bonds. It would do that whereas remaining aligned with the aims of the Paris settlement which goals to restrict international warming to 1.5 levels.
Firms topic to UNGC (UN International Compact) controversies or in sectors reminiscent of weapons, thermal coal, oil sands, arctic oil and gasoline, or tobacco manufacturing are mechanically excluded from the ETF.
Nick King, head of ETFs at Constancy, mentioned: “Decreasing local weather influence and supporting the Paris Settlement set out in 2015 are of the utmost significance for constructing a sustainable future, and the launch of this new ETF reaffirms Constancy’s ambition in sustainable investing. We’re satisfied this new sustainable ETF will present shoppers the chance to satisfy their monetary targets and their local weather aims.”
The ETF makes use of Constancy’s proprietary multi-factor mannequin, analysing bonds utilizing quantitative multi-factor indicators to assist establish issuers that outperform.
It’s listed on the London Inventory Change and Constancy plans to additionally register it throughout Europe.
Constancy’s ETF vary now consists of 18 options from revenue, sustainable fairness, sustainable fastened revenue and thematic.