Luxembourg-based Quintet Private Bank is launching a multi-asset climate-neutral Ucits fund – Essential Portfolio Selection (EPS) Quintet Earth.
The fund harnesses exposure to green bonds and low-carbon equities, offset by carbon emissions through reforestation activities.
Proceeds from green bonds will go towards projects designed to generate positive environmental impacts, according to the bank, while low-carbon equities will be 70% less carbon emitting than conventional equities.
Carbon emissions associated with the equities will be offset through the annual purchase of carbon credits from community reforestation projects.
The fund will passively track the Bloomberg MSCI Global Green Bond and the MSCI World Low Carbon Equity Target indices.
The fund is managed by German asset manager DWS. The firm was investigated by German financial regulator BaFin last year after allegations of greenwashing were cast its way.
“The structure of the fund is intentionally easy to understand because we know that, when it comes to sustainable investing, everyone is tired of navigating a jungle of jargon,” said James Purcell, group head of sustainable investment at Quintet. “The fund stands apart because it is entirely transparent, with an accessible ‘reduce, transform and remove’ framework,” he added.
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