HANetf and Saturna Capital partner to launch first actively managed, sustainable ETF with carbon offset in Europe
- Our sustainable ETF is actively managed
by Saturna Capital, global asset managers with over 30 years’ experience in
socially responsible investing.
- Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) will aim to achieve capital
appreciation by investing in companies with robust environmental, social, and
governance (ESG) policies.
- Through
the HANzero™
carbon offset, investors of this fund will
be directly neutralising the carbon emissions of their investments through
projects such as Topaiyo Forest Conservation in Papua New Guinea and the Musi
River Hydro Plant in Sumatra, Indonesia
- Endeavours to
invest in circa 50-60 high quality, attractively priced global companies that
are best-in-class on a variety of ESG, financial, and valuation metrics and
have solid growth prospects.
5th July 2021, London
Saturna Capital and HANetf have
today announced the launch of an actively managed, sustainable ETF, the Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) ‘SESG’. The ETF will launch via the HANetf platform and will list on the London Stock
Exchange in early July.
The Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) will be the second ETF in Europe and the
second on the HANetf platform to incorporate carbon offsetting, in order to
give environmentally conscious investors the opportunity to target capital
growth with the reassurance that any carbon emissions linked to their
investment will be offset. HANetf’s
carbon offsetting brand is known as ‘HANzero™’ and will work in conjunction with carbon offset specialists,
South Pole, to directly neutralise the carbon
emissions of their investments through projects such as Topaiyo Forest
Conservation in Papua New Guinea and the Musi River Hydro Plant in Sumatra,
Indonesia. The SESG ETF is
classified as Article 8 under the Sustainable Finance Disclosure Regulation
(SFDR). When you trade ETFs your capital is at
risk.
The SESG sustainable ETF is
actively managed by Saturna Capital, global asset managers with over 30 years’
experience in socially responsible investing and with over $5billion assets
under management. The ETF will follow
the same investment strategy as Saturna’s US-based sustainable equity mutual
fund that launched in 2015 and is run by the same managers, Jane Carten, MBA
and Scott Klimo, CFA, and has a 5-globe rating from Morningstar[1].
The Saturna philosophy and
process aims to generate consistent and sustainable market-beating returns by
seeking companies that demonstrate sustainable financial characteristics such
as management strength, sustainable and growing cash flows, low debt, and
strong balance sheets.
The fund positively screens for
ESG factors such as companies demonstrating excellent corporate governance, a
commitment to reducing environmental impact in the areas of carbon emissions,
water and waste and positive social characteristics. Negative screening
excludes companies engaged in higher ESG risk businesses (eg no alcohol,
weapons, gambling or fossil fuel extraction).
The fund invests globally and is benchmark agnostic in terms of
geographic and industry allocations creating a globally diversified fund.
When you trade ETFs your capital
is at risk.
Jane Carten, CEO of Saturna
Capital said: “Saturna
Capital has managed socially responsible investments via its US-based family of
Shariah-compliant funds since the firm’s founding in 1989. 30+ years of
experience in socially responsible investing led us to launch the Saturna
Sustainable Funds in 2015, with a specific commitment to ESG investing and we are
delighted to bring the Saturna Sustainable ESG Equity HANzero™ UCITS ETF (ticker: SESG) as an active ETF to Europe.
Saturna Capital believes that companies
proactively managing business risks relating to environmental, social, and
governance (ESG) issues make better contributions to the global economy and are
more resilient. Saturna has a proprietary ESG scoring model which uses a
combination of negative and positive screening, along with financial analysis
and an emphasis on low debt, to outperform peers on a variety of ESG factors.
We believe that companies proactively managing business risks related to ESG
issues are more resilient and make better contributions to portfolios designed
for patient investors.”
Hector McNeil, Co-CEO of
HANetf said “Active ETF assets are currently small given the size of the
overall industry, but growth is strong. ETFGI recently reported
that assets invested across active EFTs and ETPs had reached a record $329 by
the end of Q1 this year[2].
The well-recognised
advantages of ETFs – intra-day trading, shortability, lendability, having an
ETF portfolio held in one venue, portability of positions between trading
venues, low entry costs and diversification – are becoming more prevalent. This
gives investors the option to gain exposure to the same active investment
strategies they already own via an ETF wrapper.
It’s time to bring these benefits to the active management space,
creating more choice and more opportunity for both institutional and retail
investors.”
HANzero™: Carbon offset
projects
Through the HANzero™ programme, investors of this fund will be
directly neutralising the carbon emissions of their investments through
projects such as Topaiyo Forest Conservation in Papua New Guinea and the Musi
River Hydro Plant in Sumatra, Indonesia, each of which contributes towards a
range of the UN’s Sustainable Development Goals:
Topaiyo Forest Conservation
Working with the indigenous landowners in New Ireland,
this project protects vital rainforest from deforestation. It recovers the
land‘s rich biodiversity and revitalises its natural carbon stocks, in turn
combating global climate change and enhancing the social and economic
development of one of the poorest and most isolated areas of Papua New
Guinea[3].
Musi River Hydro Plant
The project on the island of Sumatra, Indonesia,
addresses issues in rural Sumatra such as poor electricity access and the lack
of quality employment opportunities – as well as fostering sustainable economic
development.
We’ve selected these projects, in part, due to their
respective links to the reduction (or avoidance) of carbon[4].
Visit the Saturna Sustainable ESG Equity HANzero™ UCITS ETF fund page for more.