Touchstone files for ‘climate transition’ ETF

Managed by Lombard Odier's Paul Udall

Touchstone Investments is preparing its fifth ETF, a product that would seek to invest in companies benefitting from “a transitioning climate environment”.

The company filed an initial prospectus January 5 for the Touchstone Climate Transition ETF. The fund would seek out equity securities that the fund’s subadvisor, Lombard Odier Asset Management, sees as “leading the development of solutions for a net-zero carbon emissions and climate-resilient economy, and/or may benefit from a transition to a carbon-constrained world and adaptation to a carbon-damaged world”. That includes companies seen as solutions providers, transition leaders and those providing “adaptation opportunities”, according to the filing.

Lombard Odier’s Paul Udall is listed as portfolio manager for the forthcoming ETF, while Peter Burke-Smith would be assistant portfolio manager.

Listen to ESG Clarity EU’s podcast with Paul Udall here.

Touchstone has several existing ETFs, none of which appear to have a climate-related or ESG focus. However, two of the firm’s mutual funds do – the Non-US ESG Equity Fund and the International ESG Equity Fund.

The forthcoming ETF is actively managed and would be listed on the Chicago Board Options Exchange. It has net expenses of 69 basis points.