NN Investment Partners TFI has launched an environmental, social and governance (ESG) index fund that tracks the performance of Polish blue-chip stocks.
The NN Indeks Odpowiedzialny fund is set to launch on 3 September and will be created out of the NN Akcji 2 (Shares 2), which has £330m assets under management (AUM).
Tracking the WIG-ESG index which has been created in tandem, the fund will offer investors exposure to stocks in the WIG20 and mWIG40, which are typically blue-chip stocks listed on the Warsaw Stock Exchange (GPW).
Weighting will be determined on the number and value of free-float shares and will be adjusted by each company’s ESG rating from Sustainanalytics and the degree of compliance with the corporate governance principles laid down in the Code of Best Practice for GPW Listed Companies 2016.
Sustainalytics’ ESG risk ratings measure a company’s exposure to industry-specific material ESG risks, and how well the company is managing those risks.
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Robert Bohynik, board member and investment director at NN IP TFI, commented: "To launch a Polish passive fund tracking an exchange index comprising companies which follow high standards of corporate governance, mitigate their environmental impact and are socially responsible, we first had to develop such an index.
"The fund’s portfolio will include the stocks of companies which may not be ESG leaders but are working to improve.
"We are launching such funds to support positive change and put issuers under pressure, so they mitigate their environmental footprint and follow superior corporate governance standards."