First actively managed ESG ETF opens to investors

Australia’s first actively managed environmental, social and governance (ESG) exchange-traded fund (ETF) has been launched by eInvest, a distributor of exchange-traded managed fund solutions.

The objective of the fund is to give investors in ESG portfolios an opportunity to have an ESG impact without impeding their financial goals.

EInvest managing director Camilla Love said the fund, which will be managed by Perennial Value Management, is a nod to the growing trend among investors to focus on sustainable investing.

“Our fund not only gives investors access to specialist active management skills through a convenient and lower-cost, ASX-tradable structure, it also provides the tools to make a social impact without compromising on returns,” Love noted.

The eInvest Future Impact Small Caps Fund aims to avoid compromising on investment returns by using the S&P/ASX Small Ordinaries Accumulation Index as a benchmark, and will focus on a diversified portfolio of up to 70 Australian and New Zealand small and mid-cap stocks.

Perennial Value portfolio manager Damian Cottier said: “We are seeking to invest in small and mid-cap companies that are making a positive contribution to a sustainable future.

“We have a strong heritage in investing in the under-researched small-cap universe, which makes us well placed to uncover interesting investment opportunities for the fund.”

The new fund plans to exclude companies that show a disregard for sustainability practices, such as those that draw more than 10 per cent of their revenue from fossil fuels, alcohol, tobacco, weapons, forestry activities, gambling and unhealthy fast foods.

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