Industry Updates

State Street sees smart beta global ESG index fund pass £1bn

Tom Eckett

a forest with trees

State Street Global Advisors has seen its multi-factor global environmental, social and governance (ESG) index fund surpass £1bn assets under management (AUM) just seven months after launching.

The State Street ACS Multi-Factor Global ESG Index fund was launched on 18 January and has an ongoing charges figure (OCF) of 0.20%.

The fund tracks the MSCI World Select 5-Factor ESG Low Carbon Target index, which looks to offer investors exposure to companies with a stronger ESG and low carbon profile than its parent index, the MSCI World.

Jenny Yoe, managing director, head of UK and Ireland institutional at SSGA, commented: “We believe that superior long term performance can be achieved when companies take their responsibilities to people and the planet seriously.

“Investors are increasingly interested in understanding the positive relationship of ESG integration to fund performance.”

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Ana Harris, head of equity indexed strategies at SSGA, added: “The fund allows investors to build an equity allocation with an improved carbon footprint and ESG profile relative to the broader market.

“We closely monitor ESG exposures across the fund to ensure an appropriate balance of factors are maintained at all times.”

ESG has grown in increasing popularity in recent years. Last month, UBS Asset Management became the first issuer in Europe to see an ESG ETF pass €1bn AUM, the UBS ETF MSCI World Socially Responsible UCITS ETF (WSRUSA).

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