European fund management firm DWS has added the DWS Invest ESG (Environmental, Social and Governance) Euro Corporate Bonds Fund to its existing sustainable funds range. The vehicle is a new sustainable mutual fund focusing on investment grade corporate bonds from the eurozone.
The application of the sustainable minimum standards of DWS limits the pool of available securities by almost 20% in comparison to the traditional variant, the €2 billion DWS Euro Corporate Bonds. Both funds are managed by Karsten Rosenkilde, portfolio manager.
The new strategy’s fund management applies the usual market exclusions for controversial sectors and for companies that violate the United Nations’ Global Compact. Furthermore, a strong best-in-class approach is pursued, which recognises pioneers and latecomers with regard to sustainability and takes the latter from the group of allowable securities. This best-in-class approach is based on a variety of individual ESG indicators and has an explicit focus on reducing CO2 emissions.
Joern Wasmund, head of fixed income, commented: “DWS is determined to consider sustainability aspects in bond fund management. ESG criteria provide a standardised framework for the early identification of risks. This helps to avoid significant price losses and provides the opportunity to provide investors with a better risk-adjusted return.”