SSGA creates low-carbon fund

26 April 2018
| By Oksana Patron |
image
image image
expand image

State Street Global Advisors (SSGA) has created, in partnership with MSCI, a low carbon, high environmental, social and governance (ESG) international equities index fund which will target Australian institutional investors.

The State Street Low Carbon ESG International Equities Index Trust would be the next phase for an index fund which was launched by SSGA 18 months earlier, and which screened out companies engaged in tobacco and controversial weapons.

The firm also said it would change the fund’s index to one, which would further reduce carbon emissions intensity by 50 per cent and would target a 20 per cent improvement in its overall ESG profile.

The fund was valued at $229 million, as at 28 February 2018, and would track the MSCI World ex Australia Select ESG Low Carbon Integrated Index.

SSGA’s head of global equity beta solutions, Asia ex Japan, Susan Darroch said the index would also allocate higher weightings to companies with better overall ESG scores and would exclude stocks that do not adhere to international norms such as the UN Declaration of Human Rights.

“While many larger institutions are of sufficient size to have customised, low carbon/ESG mandates, other institutions are looking to achieve the same exposure via a low-cost indexed fund,” Darroch said.

“Our clients want the ESG outcome, but to avoid significant deviations in country and sector allocations when compared to the broader market index.

“There are less than a handful of existing options to do this locally.”

AUTHOR

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 6 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 6 months ago

The pace of economic growth in Australia is expected to “grind higher over coming quarters” off the back of lower inflation, falling interest rates, and a robust labour m...

1 hour ago

The superannuation sector has welcomed confirmation that a controversial US tax provision will be removed....

2 hours 31 minutes ago

A new analysis from environmental finance group Market Forces has reportedly discovered that AustralianSuper is on the brink of becoming the largest investor in Whitehave...

2 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3