Industry Updates

HANetf to shut active carbon-offset ESG ETF amid low demand

SESG becomes the issuer’s eight closure in six months

Jamie Gordon

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HANetf is set to close the actively-managed Saturna ESG ETF after difficulty gathering assets made it “impracticable and inadvisable” to continue operating.

The Saturna Sustainable ESG Equity HANzero UCITS ETF (SESG) launched in July 2021 and amassed just over $3m assets under management (AUM) in 19 months.

Terminating on 31 March, the ETF’s last day of trading will be 27 March with investors given until 29 March to redeem their shares.

Remaining shares in the ETF will face compulsory redemption, with all proceeds returned to investors by 18 April.

In a statement, HANetf said: “The board has considered the viability of the fund and, taking into account the current levels of AUM and the best interests of the shareholders, has determined that it is impracticable and inadvisable for the Fund to continue to operate.

“Under the instrument of incorporation of the ICAV, the board may terminate a sub-fund if the net asset value of the relevant sub-fund is less than the minimum fund size.”

SESG becomes the eighth product on HANetf’s white-label ETF platform to shut since August 2022. The other closures are:

  • Purpose Enterprise Software ESG-S UCITS ETF (SOFT)

  • iClima Smart Energy UCITS ETF (DGEN)

  • Cleaner Living ESG-S UCITS ETF (DTOX)

  • ETC Group Physical Bitcoin Cash ETP (BTCH)

  • ETC Group Physical Stellar ETP (STLR)

  • ETC Group Physical Tezos ETP (EXTZ)

  • ETC Group Physical Uniswap ETP (USWA)

SESG had lower AUM than the issuer’s other recent closure, the $4m SOFT ETF, which housed more assets than 11 ETFs still trading on HANetf’s platform.

SESG was significant as Europe’s first white-label active ETF and also the continent’s first active carbon-offset ESG ETF.

The ETF also featured in the model portfolios HANetfrecently launched in partnership with Algo-Chain, claiming a 19.8% weighting in the climate change ESG growth portfolio.

The four equity ETFs shut by the white-label ETF issuer so far were all launched in 2021 when it built out its product range at pace with a number of first for the European ETF market.

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