Luxembourg-based private bank Quintet has announced the launch of the world’s first multi-asset, climate-neutral investment fund.
The essential portfolio selection (EPS) Quintet Earth fund provides equal exposure to green bonds and low-carbon equities and offsets associated carbon emissions via reforestation activities.
Quintet Earth is a UCITS fund, which has been launched with €280m in assets, seeks to generate real-world impact along with performance.
Quintet noted that all green bond proceeds are invested in projects that seek to generate positive environmental benefits.
The basket of low-carbon equities is associated with 70% less carbon than conventional equities, it added.
The carbon emission is compensated for by acquiring carbon credits derived from community reforestation projects annually.
DWS, with €880bn of assets under management, will manage Quintet Earth, which is a liquid, multi-currency fund, with daily trading, and has a recommended three to five-year holding period.
Non-profit organisation Myclimate, which currently supports over 125 climate-protection projects in 37 countries, will help Quintet measure the fund’s carbon offset activities.
Quintet Group head of sustainable investment James Purcell said: “Quintet Earth makes a simple promise: Generate competitive long-term, risk-adjusted returns while simultaneously combating climate change.
“The structure of the fund is intentionally easy to understand because we know that, when it comes to sustainable investing, everyone is tired of navigating a jungle of jargon. The fund stands apart because it is entirely transparent, with an accessible ‘reduce, transform and remove’ framework.”
DWS passive sales global head Simon Klein said: “DWS has a long history of providing efficient index-tracking solutions. We are pleased to deploy that expertise in support of Quintet’s new fund, which we’re sure will be a great success.”
Myclimate management committee member and corporate partnerships department head Kathrin Dellantonio said: “Offering a transparent solution that contributes to this long-term transformation, Quintet is also supporting impactful, nature-based carbon-capture projects.”