Europe’s largest listed asset managerAmundi SA will partner with university endowments at Cambridge and Oxford to start a low-carbon index tracking fund.
The Amundi ESG Global Low Carbon Fund will aim to replicate performance on the MSCI All Country World Index. It will exclude fossil fuels and thermal coal, and aim to improve green revenues and reduce potential exposure to controversies, the company said in a statement, without giving a fund size.
$69.9B Renewable power investment worldwide in Q2 2020 0 3 2 1 0 9 ,0 5 4 3 2 1 0 2 1 0 9 8 0 0 9 8 7 6 Soccer pitches of forest lost this hour, most recent data +0.85° C Oct. 2020 increase in global temperature vs. 1900s average 50% Carbon-free net power in Germany, most recent data
Hebi, ChinaMost polluted air today, in sensor range
50,820 Million metric tons of greenhouse emissions, most recent annual data
“These clients are looking to replace equity portfolios and move to this low carbon solution to address the financial risk in terms of climate change,” Ashley Fagan, who heads up Amundi’s exchange-traded fund and indexing business in the U.K. and Ireland, said in a Bloomberg TV interview. “We’re seeing ESG become mainstream. It’s replacing the core portfolios now. It’s not just niche, thematic and sitting in a very specific, ethical portfolio.”
Amundi’s fund will be seeded by Cambridge’s Clare College and will be open to other university endowments, charities and professional investors. It follows Oxford’s recent move to partner with BlackRock Inc. to start a sustainable tracker fund, as universities and asset managers face increasing pressure to respond to climate change and governance issues.
After five years of student protests and graffiti on ancient buildings, the University of Cambridgecommitted to divesting its 3.5 billion-pound endowment from fossil fuels last month. In April, the University of Oxford said it will remove directly held fossil fuel investments from its 3 billion pounds of funds. They have still moved faster than U.S. peers, with Harvard University only vowing apath to “net zero” emissions by 2050.
Amundi has 345 billion euros ($409 billion) inresponsible investments, representing 21% of its total assets managed. Bloomberg Intelligence senior analyst Sarah Jane Mahmud expects it to keep expanding its range of environmental, social and governance exchange-trade funds.
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