Launch stream

‘First’ multi-asset climate neutral fund launches

Jakob Stott and James Purcell

A Luxembourg-headquartered private bank has brought to market a multi-asset, climate-neutral investment fund.

Quintet Private Bank said the fund named Quintet Earth is the first of its kind offered in Europe and combines equal exposure to green bonds and low-carbon equities, offsetting associated carbon emissions through reforestation activities using the company myclimate.

Seeded with €280m in assets, the Ucits fund is managed by DWS and replicates Bloomberg MSCI Global Green Bond and MSCI World Low Carbon Equity Target indices, with a passive structure.

The green bond proceeds are exclusively invested in projects designed to generate positive environmental benefits, while the basket of low-carbon equities is associated with 70% less carbon than conventional equities. The carbon emissions associated with those equities are offset through the annual purchase of carbon credits derived from community reforestation projects – removing carbon from the atmosphere and supporting sustainable development.

James Purcell (pictured right), group head of sustainable investment at Quintet, commented “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. The fund stands apart because it is entirely transparent, with an accessible ‘reduce, transform and remove’ framework.”

“Companies that are better prepared for the impact of climate change on their business – which build resiliency and carefully manage associated risks – are better positioned for growth,” added Quintet group CEO Jakob Stott (pictured left).

“Quintet Earth captures… the urgent necessity to build a cleaner and healthier world.”